Live-in Partner's Rights before and after Death

sterlingsafeguarder

My friend (he is 76) wishes to open a joint bank account with his "live in" partner of 6.5 years (she is 72). This would be in addition to his own bank current account. She also has her own current account.


He wants to do this for the purpose of giving her some of his cash assets in recognition of their loving relationship and her invaluable contribution to the maintenance of his well-being during this time.


I understand that he would be the sole subscriber to this joint account over time.


I have read that after the death of one of the joint account holders the other would be able to continue to access and manage the account, and could have it changed to solely in their name. Conversely, I have also read that if the surviving joint account holder has not put any money into the joint account their "ownership" could be challenged.


The value of my friend's estate (house, cash accounts, car) would be well below the inheritance tax threshold.


Could anyone advise on a possible scenario where my friends' children challenge the ownership status of such joint account holder following her partner's death. Two of his children have financial and health POA's registered this year. Would it be preferable for him to:

• Gift her money during his remaining years
• Make a will in which she is declared as a beneficiary
• Open a joint bank account as outlined above

He says he wants avoid the situation whereby his next of kin get everything and his partner gets nothing. He has the mental capacity to make decisions on information and advice given.


Any comments would be very welcome.

Yorkshireman99

sterlingsafeguarder wrote: »

My friend (he is 76) wishes to open a joint bank account with his "live in" partner of 6.5 years (she is 72). This would be in addition to his own bank current account. She also has her own current account.


He wants to do this for the purpose of giving her some of his cash assets in recognition of their loving relationship and her invaluable contribution to the maintenance of his well-being during this time.


I understand that he would be the sole subscriber to this joint account over time.


I have read that after the death of one of the joint account holders the other would be able to continue to access and manage the account, and could have it changed to solely in their name. Conversely, I have also read that if the surviving joint account holder has not put any money into the joint account their "ownership" could be challenged.


The value of my friend's estate (house, cash accounts, car) would be well below the inheritance tax threshold.


Could anyone advise on a possible scenario where my friends' children challenge the ownership status of such joint account holder following her partner's death. Two of his children have financial and health POA's registered this year. Would it be preferable for him to:

• Gift her money during his remaining years
• Make a will in which she is declared as a beneficiary
• Open a joint bank account as outlined above

He says he wants avoid the situation whereby his next of kin get everything and his partner gets nothing. He has the mental capacity to make decisions on information and advice given.


Any comments would be very welcome.

Best thing would be to marry and subseqently make a will or make a will in contemplation of marriage to his partner. Joint accounts and joint ownership of the house would be a good idea. Best thing is to go and see a solicitor ASAP given their ages.

DigForVictory

+1 for matrimony. As current legislation does not smile on live-in relationships, once one heart has ceased (or is ceasing) to beat.

Might seem a bit extreme, but it is the most reliable way of ensuring she's treated right should his capacity slip. Especially since Powers of Attorney are in hand.

I'll not ask why he hasn't "put a ring on it" [The Registry Office need not be That Expensive], but if she makes him happy & looks after him, they may as well make it official & his children can get used to the idea of treating her with respect.

ERICS_MUM

Marriage would also 'help' his children manage their expectations of their inheritance.!

Savvy_Sue

the next best thing to marriage would be for him to make a will naming his partner and leaving a bequest which might include 'whatever's in the ... account'.

TBagpuss

It would be sensible for him to make a will. He can then take proper advice, and also explicitly state the account is to go to her (and can also consider, for instance, providing for her to have the right to stay in the house after his death (for instance, for 6-12 months, or even for a longer period) to give her time to adjust and to find alternative accommodation.

It's up to him (and her!) whether they want to marry.

It would be sensible for him to let his children know what he wants so they are clear that this is his decision, which may hopefully reduce the risk of them seeking to challenge her claims. He may also want to consider what he would want to happen financially if he loses capacity - would he wish to continue to support her financially? If so, he needs to e very clear about that to the attornies, and possibly to amend the POA to make this a specific instruction.

Robisere

If he makes a Will, please advise him to do this through a recognised Solicitor, not one of those online Will-Writing services. The solicitor would be able to give the correct advice to them both - please also advise that he takes his partner with him to the solicitor (or asks for a home visit from a solicitor)

I say this because I know of an event with a will writing service which went very wrong: the parties argued over the will and it took months to settle, causing family upset which conitnues to this day.

SevenOfNine

Your friend trusted 2 of his children to register the POA's, does he not trust them enough to discuss what he wants to achieve for this lady?

6.5 years is not that long together in the life of a 76 year old. There may be a perfectly valid reason why they have/do not marry, why he doesn't simply amend/write his will, & why they maintain separate bank accounts.

It doesn't sound as if he wants to cut his children out, or ensure this lady has too large a portion. In fact, he's enquired about a JOINT account so that he can decide how much is paid in, & that much can pass to her when he dies, but while alive it is his AND hers. Maybe he's not 100% sure they'll remain together & doesn't want to get into a situation he can't reverse (otherwise he could just put money into her own a/c), it sounds as if mental capacity may be an issue in the future (?).

Perhaps this man is a widower & everything that he has now was build up with his wife, who he knows would want the lions share of what had been 'theirs' to eventually pass to their offspring, not necessarily great chunks of it to a new lady friend. It even sounds like that's what HE wants as well - but with some financial recognition (determined by how much he chooses to pay in) going to this lady.

Personally, I'd be doing as others have advised. Make sure the POA reflects his wishes for the joint account & the monies going/gone into it that he has chosen to place there during the time he's retained enough the mental capacity to make that choice himself.

See a proper solicitor to write a Will which lays out exactly what he wants for the ladyfriend, not sure how difficult/simple it might be merely to specify "all of the contents of any joint bank/savings accounts".

Presumably he's not trying shift money sideways in order to deprive himself of assets in the hope of keeping it out of the sticky paws of the local authority, should he need a care home or homecare assistance in the future.

Mojisola

Robisere wrote: »

The solicitor would be able to give the correct advice to them both - please also advise that he takes his partner with him to the solicitor (or asks for a home visit from a solicitor)

Not sure this is a good idea - her interests might conflict with the way he wants to leave his estate. A solicitor shouldn't be advising both sides!

He should be able to discuss his wishes in private with his solicitor.