Financial link between me & mum

Giddypip

Apologies if this is the wrong forum.


My mum has mentioned to me today that she would like to either open a joint bank account with me or add my name on to one of her accounts.



She is widowed and I am listed as executor of her will and have power of attorney for health & wealth.


She wants me to be able to access her money easily if she becomes unfit to manage her own finances or if she pops her clogs. However, as I'm executor and have power of attorney I don't think I would have trouble.



I have no problem with having a joint bank account with her if it would stop her worrying, she has no mortgage, good credit record, savings & company pension. I have a mortgage, work full time, good credit record etc.



I assume if we have a joint account our credit records would become linked. Can anyone forsee any problems with this?



TIA

pinknsparkly

I'll start by saying that I have no legal knowledge, or experience in this situation. But I would suggest that being a joint account holder with her would make access to her money more straight forward in an emergency situation (such as her becoming hospitalised). Though this depends what type of access you may require in an emergency. If it's simply the ability to withdraw cash for her to use, then she can simply give you her PIN and card.

Yes, opening a joint bank account will cause your credit records to be linked which could cause you problems later on, such as applying for a mortgage, if she's got a poor credit history (it will also affect her but I imagine she's unlikely to be taking out a mortgage etc!).

Mojisola

Giddypip wrote: »

She is widowed and I am listed as executor of her will and have power of attorney for health & wealth.

She wants me to be able to access her money easily if she becomes unfit to manage her own finances or if she pops her clogs.

However, as I'm executor and have power of attorney I don't think I would have trouble.

I have no problem with having a joint bank account with her if it would stop her worrying, she has no mortgage, good credit record, savings & company pension.

You don't need a joint account - I was put on Dad's account as a signatory - I could manage the account but all the money remained Dad's and, as far as I know, it didn't cause us to be linked financially.

It stopped as soon as he died but than, as executor, I was able to sort out the estate. Funeral costs can be paid by the bank direct to the Funeral Director so that isn't a problem.

boo_star

pinknsparkly wrote: »

If it's simply the ability to withdraw cash for her to use, then she can simply give you her PIN and card.

Which won't end well if the bank get wind of it, especially if there's a claim for fraudulent card use.

There's really no reason to not do it properly if the account holder is happy with the OP having full access to their account on a permanent basis.

fwor

As above - with Lasting Power of Attorney, you don't need a joint account. Provided you set things up in advance by presenting the bank with an original LPOA document, the bank will accept your signature on her cheques, and should allow you full access to her account.

For example, HSBC permits me to have online access to my mother's accounts (for whom I hold LPOA) so that I can make payments on her behalf.

IMO this would be a better solution for your mother, because LPOA places on the Attorney (you) an obligation to act only in her best interests when dealing with her money, whereas a joint account does not.

Giddypip

Many thanks for the replies.


I'll discuss with Mum pointing out other options such as signatory.

Tom99

I was added to my Mum's current acct as a joint holder much less faff than using a LPA but you should have that as well.
You will have your own debit card so you can shop for her or withdraw money, also access the account online to check everything is ok.

luvchocolate

Tom99 wrote: »

I was added to my Mum's current acct as a joint holder much less faff than using a LPA but you should have that as well.
You will have your own debit card so you can shop for her or withdraw money, also access the account online to check everything is ok.

This is exactly what I did for my Dad who was blind, I did all his shopping using my own debit card on his account.
It worked well for us