Bank Access to Joint accounts

davie670

My sister lives in Spain but still has a bank account here. She has added me jointly to the account to allow me access to emergency funds if anything happens to her and I have to go to Spain to arrange funeral etc. I don't have any general access to the account and do not hold card or passbook. I recently became unemployed and although money is not an issue at this time it could be in future if I don't find work.

In the event that I cannot pay a bank loan can the bank take funds from this joint account to pay off any debt I have with them?.

DCFC79

If the bank loan isn't with the same bank then they wont be able to have access to it.

If the bank loan is with the same bank where the current account is held then I'm not sure if they could use the money to offset the loan.

realaledrinker

You are joint and severally liable for the joint account. If the loan has a right of set off and is with the same bank(ing group?) then quite possibly so. Check T&Cs.

jonesMUFCforever

It is highly unlikely that a bank will excersise their right of set off on a joint account.
Legally they could but I doubt they would try.

agrinnall

Although jones is probably right that they wouldn't do it, if the joint account is at the same bank as the loan it is a risk. If so I would seriously consider asking your sister to grant you a Financial Lasting Power of Attorney (you might want to think about a welfare one too, although I'm not sure how effective it would be in another country) and remove your name from the joint account.

jonesMUFCforever

agrinnall wrote: »

Although jones is probably right that they wouldn't do it, if the joint account is at the same bank as the loan it is a risk. If so I would seriously consider asking your sister to grant you a Financial Lasting Power of Attorney (you might want to think about a welfare one too, although I'm not sure how effective it would be in another country) and remove your name from the joint account.

I wll agree with you if the loan was in the same joint names too otherwise they wouldn't.

xylophone

If so I would seriously consider asking your sister to grant you a Financial Lasting Power of Attorney (you might want to think about a welfare one too, although I'm not sure how effective it would be in another country) and remove your name from the joint account.

Death ends PoA.

The idea seems to be that the OP has access to the joint account in the event of his sister's death/other emergency.

That said, I am not sure how he would quickly access it without card or chequebook.

agrinnall

xylophone wrote: »

Death ends PoA.

The idea seems to be that the OP has access to the joint account in the event of his sister's death/other emergency.

That said, I am not sure how he would quickly access it without card or chequebook.

Yes, but it's the other emergency scenario where access would be urgent (when you're dead you're dead and things can take their time), so it still makes sense to have LPA (even if we ignore the joint account issue). Access can be through online banking, and there's no reason why the OP's sister couldn't provide a few loose cheques.