2 bank accounts (1 with husband & 1 with someone else) - Am I responsible for the other persons debt

Brie

I agree with taking your name off the account.  You could ask for that and ask to have "third party authority" which would mean that it's not your account and therefore you wouldn't be liable for anything but you would still have access to do things online and in the branch to assist the individuals.  I have this with my MiL's NatWest account.

The alternative is for them to provide you with the login details without you being officially on the account at all.  Again - you would be able to do all the online banking, paying bills bit with none of the liability.  The problem with this, however, is that the bank wouldn't be happy about it - same as they don't like/advise giving away one's pin to someone as it breaches their security.

Grumpy_chap

Jo4 said:

Ergates said:

Unless you're a co-signee of the debt in question (e.g. a joint mortgage) then you are never responsible for other people's debt.

However, if there are any funds in the joint account with them, then *some* of that money would form part of their estate, and would be used to clear any remaining debts they had.   It would be up to the executor of the estate to determine how much of the money in the joint account belonged to the other party, and how much belonged to you.  I expect it would be split 50/50 unless there was some compelling reason not to do so.

Thank you!

All the money in the account is theirs.  They wanted my name on the account so that I could lodge money in for them and pay their bills because they would have to make a 2 hour return journey to get to the bank and they are not confident with on-line banking.

That seems an unusual arrangement. Not many things need attending the bank in person.  You may have good reasons.

Do the account holders live abroad?

Jo4

400ixl said:

In theory they could pay some of that debt off of the cards by putting the joint account into over draft and then you will be liable as much as they are.

I am glad to say there is no overdraft on the account at the moment.

Jo4

Brie said:

I agree with taking your name off the account.  You could ask for that and ask to have "third party authority" which would mean that it's not your account and therefore you wouldn't be liable for anything but you would still have access to do things online and in the branch to assist the individuals.  I have this with my MiL's NatWest account.

The alternative is for them to provide you with the login details without you being officially on the account at all.  Again - you would be able to do all the online banking, paying bills bit with none of the liability.  The problem with this, however, is that the bank wouldn't be happy about it - same as they don't like/advise giving away one's pin to someone as it breaches their security.

I must look into third party authority, as it sounds like it would leave it that I could still pay their bills with their money but it wouldn't affect my credit file.

Jo4

Grumpy_chap said:

Jo4 said:

Ergates said:

Unless you're a co-signee of the debt in question (e.g. a joint mortgage) then you are never responsible for other people's debt.

However, if there are any funds in the joint account with them, then *some* of that money would form part of their estate, and would be used to clear any remaining debts they had.   It would be up to the executor of the estate to determine how much of the money in the joint account belonged to the other party, and how much belonged to you.  I expect it would be split 50/50 unless there was some compelling reason not to do so.

Thank you!

All the money in the account is theirs.  They wanted my name on the account so that I could lodge money in for them and pay their bills because they would have to make a 2 hour return journey to get to the bank and they are not confident with on-line banking.

That seems an unusual arrangement. Not many things need attending the bank in person.  You may have good reasons.

Do the account holders live abroad?

In the beginning when the account was set up I had to go into the bank to lodge money for them but I haven't had to do that since before covid started.

They do not live abroad, they are elderly.

Jo4

I have just checked my Experian file and it does not show up under "Financial Associations".

diystarter7

Jo4 said:

Grumpy_chap said:

Jo4 said:

Ergates said:

Unless you're a co-signee of the debt in question (e.g. a joint mortgage) then you are never responsible for other people's debt.

However, if there are any funds in the joint account with them, then *some* of that money would form part of their estate, and would be used to clear any remaining debts they had.   It would be up to the executor of the estate to determine how much of the money in the joint account belonged to the other party, and how much belonged to you.  I expect it would be split 50/50 unless there was some compelling reason not to do so.

Thank you!

All the money in the account is theirs.  They wanted my name on the account so that I could lodge money in for them and pay their bills because they would have to make a 2 hour return journey to get to the bank and they are not confident with on-line banking.

That seems an unusual arrangement. Not many things need attending the bank in person.  You may have good reasons.

Do the account holders live abroad?

In the beginning when the account was set up I had to go into the bank to lodge money for them but I haven't had to do that since before covid started.

They do not live abroad, they are elderly.

Are you saying that this was when the account was opened first time deposit?

If not, you should have put money into your account and transferred to theirs.

Worryingly their debt and no one else has said this - as they are elderly so I'm guessing over 70, they must contact or you on their behalf get them help with their debt/guidance etc.

MalMonroe

diystarter7 said:

Jo4 said:

Grumpy_chap said:

Jo4 said:

Ergates said:

Unless you're a co-signee of the debt in question (e.g. a joint mortgage) then you are never responsible for other people's debt.

However, if there are any funds in the joint account with them, then *some* of that money would form part of their estate, and would be used to clear any remaining debts they had.   It would be up to the executor of the estate to determine how much of the money in the joint account belonged to the other party, and how much belonged to you.  I expect it would be split 50/50 unless there was some compelling reason not to do so.

Thank you!

All the money in the account is theirs.  They wanted my name on the account so that I could lodge money in for them and pay their bills because they would have to make a 2 hour return journey to get to the bank and they are not confident with on-line banking.

That seems an unusual arrangement. Not many things need attending the bank in person.  You may have good reasons.

Do the account holders live abroad?

In the beginning when the account was set up I had to go into the bank to lodge money for them but I haven't had to do that since before covid started.

They do not live abroad, they are elderly.

Are you saying that this was when the account was opened first time deposit?

If not, you should have put money into your account and transferred to theirs.

Worryingly their debt and no one else has said this - as they are elderly so I'm guessing over 70, they must contact or you on their behalf get them help with their debt/guidance etc.

I'm over 70 and therefore obviously 'elderly' but very financially savvy. Now. After having been in financial difficulty several years ago. 

However I do agree with you that this elderly couple needs some free financial advice and support.

elsien

Third party bank mandates for now.
Plus consideration of who they would want to appoint as power of attorney for the future, as they get older and potentially lose capacity, 

MalMonroe

Jo4 said:

I have a joint bank account with my husband, his name is on the account first.  I have another bank account with another person at the same bank and that person's name is also on the account first.  The other person and their significant other have almost £30,000 of debt which is in their names and associated with their address, not mine.  If anything happened the other person or their significant other would I be held responsible for their debt?

Hi, I do agree with diystarter7 about getting some free and confidential financial advice for this couple.

Either from National Debtline - https://www.nationaldebtline.org/

Or Stepchange - https://www.stepchange.org/

I used Stepchange in the past and they were literally a lifesaver. Can't recommend them highly enough. (And I'm in my 70s and am now quite financially savvy. You're never too old to learn, and they could too.)

I wouldn't want to share an account with them, since there's every chance that it will go into overdraft and agree with others who are saying that it would probably be wise to get your name removed, if possible.