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Savings on Benefits

ferester123
Posts: 6 Forumite

Hello all, I am a carer for my mother who lives with me she is 88years old. I finished work to care for her and we are both on means tested benefits My question is I have a savings account and I am aware that I can only save up to £6000 before this would effect my benefits. My mother has a savings account but wants me to put my name on as a joint account holder in case the worst scenario happens, how much is she allowed to have in savings if I am put on the account as joint holder.
Thanks.
Thanks.
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Comments
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You would be better off organising a "Lasting Power of Attorney" in order to take care of your mother's affairs, if she is agreeable to it. Then you would be able to handle all her financial affairs without the money being in your name, in your account, or you being signed up to her account as joint account holder.
If you want to be rich, live like you're poor; if you want to be poor, live like you're rich.2 -
Thanks for your reply Bravepants I will look into that!0
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You would be better off organising a "Lasting Power of Attorney" in order to take care of your mother's affairs, if she is agreeable to it. Then you would be able to handle all her financial affairs without the money being in your name, in your account, or you being signed up to her account as joint account holder.
The OP would not necessarily be able to access these accounts after his mother's death before probate was granted. That said, banks will pay funeral costs before probate against a bill from the funeral director.
Again, if the amounts in question are below the individual bank's threshold for probate (which seems possible here), access might be permitted without.
A pre paid funeral might also be worth consideration?
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Hello and thanks for the replies.0
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If you're looking into LPA, you can do itself by downloading the forms online. You don't need to pay hundreds to a solicitor.
https://www.gov.uk/power-of-attorney
The savings limits for your mum will depend on which means tested benefits she is claiming.
However generally any money in a joint account is considered to belong to the both of you so you would to check the impact on your own benefits both now and later. If mum passes, that money would then automatically count as yours.
All shall be well, and all shall be well, and all manner of things shall be well.
Pedant alert - it's could have, not could of.2 -
Hi elsien, yes that’s a good point as I will have to declare this if anything happens to my Mother as you say the money in the joint account would count as mine and could take me over the allowed savings.I suppose the same thing even if I became power of Attorney as the money she has would still count.
Thanks.0 -
I am told that I am allowed to have savings of £6000, before it would effect any means tested benefits as I’m not yet of pension age and my Mother is allowed £10.0000 so if we have a joint account would this mean we would be allowed up to £16,0000 or £10,000?0
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If your name is put onto your mother's savings account, for benefit purposed you will both be treated as having 50% of the value of the account, so this could potentially take you over the £6000 threshold. If it does, you would have to declare that.As others have said, LPA may be an alternative to allow you to support your mother in managing her financial affairs, if that is the objective.0
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Hi NedS, so I take it let’s say together we had £10,000 in joint account it would class as £5000 each so that would be ok? But if anything happens to my mother then I would be like £4000 over ? So would need to declare that.
Thanks.0 -
ferester123 said:Hi elsien, yes that’s a good point as I will have to declare this if anything happens to my Mother as you say the money in the joint account would count as mine and could take me over the allowed savings.I suppose the same thing even if I became power of Attorney as the money she has would still count.
Thanks.All shall be well, and all shall be well, and all manner of things shall be well.
Pedant alert - it's could have, not could of.0
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