Temporary Account for Wife's Medical Expenses

FortunesWheel

I've had the same bank account since I was a kid, so looking for some advice.

My wife has stage 4 cancer and is on her last chance treatment. This is partially private and costs thousands of pounds, so some people have been kind enough to raise some money for us, and there is in fact going to be future fundraising for her, sponsored walks, tea mornings etc.

In interests of transparency, organisation and being able to accept money/cheques from strangers, we think setting up a new bank account is the best thing to do.

Does anyone have any tips or advice on best simple bank account?

It will be a short term thing we assume (Money comes in, and then in a few months when treatment has worked/failed/been stopped), we will settle up the medical expenses.

So in effect an account where money can sit for a few weeks/months/whenever the NHS bills us, when it will then be spent?

Obviously, account fees wouldnt be a great idea as its not really our money, but fundraised money.

jonesMUFCforever

A Club/Society type of account would seem to fit your needs.
All high street banks will offer them.
I would advise that a minimum of 2 signatories are set on the account to help accountability.

I wish you good luck.

mt99

You don't say where your existing bank is but if you have a local branch that you can get to it might be worth going in to see them and see what they recommend I don't see any reason why it wouldn't be easy to open a second account there

jonesMUFCforever

Club/Society are not the same as personal accounts so IMO opening a second account is not the best move here.
A new account should be annotated something like 'The appeal for wife of OP' etc - I'm sure OP would not appropriate funds incorrectly or fraudulently but you need another signature to help you account for any funds received.

FortunesWheel

Thanks for the replies.

Yes I don't think a proper society account is the way forward simply because, depening on her health (and at the moment we're working with less than a year prognosis) this is a temporary scenario. Its just some kind of account to put e.g. £10,000 until such a time as the invoice from NHS arrives. So a holding place if you want.

Not interested in interest, benefits, perks, just an account where we know we can stick this money into and then pay a bill witohut any quibbles when the time comes. Obviously, if any family/friends etc ask questions about transparency (which I don't expec will happen tbh) then a statement is easily procurable.

The reason I don't want a second account with my current bank is just incase there's questions asked or future complications when I get loans, overdrafts or any general everyday banking issues with them.

xylophone

In effect, those who give are making a personal gift to your wife to enable her to pay for her treatment.

It might be possible for her to open an account in her name (perhaps designated "medical expenses") to which payments can be made.

It would be preferable to use a local branch so that it will be easy to pay in cheques.

She could give you authority to manage the account.

Example https://www.barclays.co.uk/power-of-attorney/

In case of death during treatment, she may wish to write a codicil to her will specifying that the funds in this account must be used to pay in full for her treatment with any surplus going to Cancer Research/a charity for her particular condition.

colsten

Have you got HMRC's confirmation that the gifts / donations / contributions to the medical bills will be exempt from tax?

xylophone

Have you got HMRC's confirmation that the gifts / donations / contributions to the medical bills will be exempt from tax?

These would not be donations to a registered charity but more akin to personal gifts to an individual so I am not sure that this would apply.

I doubt that gifts by individual donors would exceed their personal IHT free gift allowances but if they do, the donors need to deal with this for themselves.

It seems that the bank account required will be a no frills and no interest type so no concern for the wife's income tax affairs.

With regard to any IHT on her estate, as far as I can see, there would be none on the debt to the NHS and any gift to charity from any surplus would also be IHT free?

colsten

I don't know the answers, and if it was me, I'd check with the HMRC beforehand.

bigadaj

colsten wrote: »

Have you got HMRC's confirmation that the gifts / donations / contributions to the medical bills will be exempt from tax?

On what basis might they be, gifts, donations etc aren't liable to tax in the uk.

trailingspouse

It's always worth checking with HMRC - if their website doesn't give the answer, then call them. They get a bad press, and it can take a while to get through, but I've always found them very helpful once you're through to them. It makes their life easier if you get it right first time, so it's in their interest to help you to get it right.