Joint UK Bank Account With USA Resident

rbz5416

I'm looking to open a joint account shared with my sister, who is permanently resident in the USA. I currently hold accounts with Nationwide & Halifax, both of whom nearly fainted at the idea before ruling it out. Barclays & HSBC seem to offer international accounts that may do the job (I'm awaiting confirmation) but Barclays require a maintained balance of £25k & HSBC £60k. :eek:

The account will operate solely in the UK for sterling receipts & payments. But I need my sister to be able to continue to administer the account via online banking in the event of my death, without getting involved in POA or Deputyship.

Does anyone here have such an arrangement & can recommend a provider?

eskbanker

I'm not aware of UK banks offering (access to) accounts for US residents, but perhaps you could expand on what you're ultimately trying to achieve, i.e. in the event of your death, what's the significance of the desire to keep the same account going?

Accepting that that's not what you're actually asking, it may be that someone can contribute alternative ways of achieving the equivalent end result....

rbz5416

eskbanker wrote: »

perhaps you could expand on what you're ultimately trying to achieve, i.e. in the event of your death, what's the significance of the desire to keep the same account going?

It's actually funds I hold under POA for my mother. When an attorney dies the POA dies also & cannot be bequeathed to a next of kin or anyone else in a will. So should I die before my mother, my sister would have to start from scratch by applying to become her Deputy.

That seems to be a lengthy & expensive route for someone based in the UK. I would imagine it to be a nightmare for someone not resident here. Even if she was granted Deputyship, I know from my own experience how problematic it is dealing with financial institutions who always require sight of the the original court paperwork or certified copies. Can you imagine the scope for delay & potential loss of bits of paper flying backwards & forwards across the Atlantic?

So as a side issue, anyone setting up a Lasting Power of Attorney needs to ensure that they've thought through the chain of command. I was backup to my Dad but Mum never updated hers when he died.

gingercordial

It won't help you but may alleviate (or redirect) your frustration if you understand why most banks are reluctant to do this. There are US tax rules called "FATCA" which require foreign banks to report to the IRS about the activities of any US citizens which hold bank accounts with them. Some banks have made the decision that they do not want to be involved in this process at all (it is a lot of admin and potential penalties) and so their policy is that they will not give accounts to US citizens.

This will be why Halifax and Nationwide did not want to do this at all - it is not their fault but all down to the IRS rules. You need the kind of bank that has US operations and so has resigned itself to doing the reporting anyway. HSBC might work, but also try the likes of Citibank. However as you have also found they might only offer it to high-value customers.

18cc

no idea if this is feasible but could you move the funds to isa and open a joint account there? oe no fatca problems

colsten

18cc wrote: »

no idea if this is feasible but could you move the funds to isa and open a joint account there? oe no fatca problems

The US, like any other country, doesn't recognise ISAs. As a US citizen resident anywhere in the world (and may be even as a non-US citizen but a US resident), you have to report any and all your worldwide assets to the IRS, and they'll tax you according to IRS rules, and any double-taxation rules. I am not aware that the latter would exempt ISAs.

eskbanker

colsten wrote: »

The US, like any other country, doesn't recognise ISAs. As a US citizen resident anywhere in the world (and may be even as a non-US citizen but a US resident), you have to report any and all your worldwide assets to the IRS, and they'll tax you according to IRS rules, and any double-taxation rules. I am not aware that the latter would exempt ISAs.

I was thinking the same thing but suspect that 'isa' was a typo and that poster actually meant 'usa', which makes slightly more sense, albeit still not a particularly viable solution....

colsten

eskbanker wrote: »

I was thinking the same thing but suspect that 'isa' was a typo and that poster actually meant 'usa', which makes slightly more sense, albeit still not a particularly viable solution....

Oh right, lol, I probably misread. Agree, it's unlikely to be more viable, and any US account would naturally be subject to FATCA.

What could be an option is a joint account offshore, e.g. in the Channel Islands. Such an account would still be subject to FATCA rules though and the offshore banks might also shy away. I would also enquire with HSBC.

Good FATCA document: https://www.fatca.hsbc.com/~/media/fatca/pdfs/middle%20east%20and%20africa/fatca-rbwm-faq-mena-en.pdf

18cc

yes sorry meant usa ie have the sister control the funds there

18cc

My post probably wasn't clear the problem with having the funds in this country is having a US person on the account is almost impossible because of the fatca rules meaning banks are very reluctant to allow it

however if you move the funds to the USA and open a US bank account then there presumably will not be the same problem having an UK signatory on the account our tax rules are little less onerous

eskbanker

rbz5416 wrote: »

I need my sister to be able to continue to administer the account via online banking in the event of my death, without getting involved in POA or Deputyship.

Surely in the event of you predeceasing your mother, your sister would need to formally acquire the legal right to look after mum's finances anyway? I get that immediate and unfettered access to funds would be convenient initially but wouldn't see that as being sustainable, so would have thought that, bureaucratic though it is, lining up the necessary deputyship or POA paperwork would be easier if done at leisure now rather than in a hurry later?

You mention that it's "funds I hold under POA for my mother" but they're presumably in mum's name to keep things straight re ownership, taxation, etc? Just thinking through the implications of the above FATCA references, i.e. sister potentially being liable for taxation on income from the money by virtue of being named on a joint account, and obviously there are tax matters on this side of the pond too....