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

Ms_Chocaholic

Can they not use the Post Office to deposit money into their bank account.

https://www.moneysavingexpert.com/team-blog/2018/06/banking-at-the-post-office/

You have posted here as you are obviously concerned, if at all possible I would remove my name from their bank account and find an alternative arrangement (Post Office or third party access).

Jo4

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 had to lodge money which they handed me a few times.  However since covid the person is relatively at ease transferring their money to my account with my husband's name and then I transfer it to theirs and pay their bills.

They think I am good with money so they trust me.  I have the majority of their debt on 0% cards or low lob rates, I am trying my best but I do worry about them.  I don't know how they cope.

Jo4

MalMonroe said:

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.

Well done!  I'm delighted for you!

I wish they were both financially savvy.

The person's significant other got a credit card with a few thousand pounds of available credit limit on it so they thought they could just spend the money and did not realise they would have to pay it back.  The significant other rarely works with money and never pays bills.

Jo4

elsien said:

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, 

They do not want to think about that possibility at the moment but perhaps I'll get them to think about it in the future.  No one knows when anything will happen anyone but they don't want to hear that.

Jo4

MalMonroe said:

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. 

The person thinks they will get out of the debt eventually, their significant other doesn't even know the extent of it but just keeps expecting the person to pay for things they do not need as and when they want them.  It is crazy, that is why I am concerned.

I am glad to say that when the account was being set up I said there wasn't to be an overdraft on it, I couldn't cope with the thought of an overdraft so I thought my name and address would be safe enough..

Jo4

Ms_Chocaholic said:

Can they not use the Post Office to deposit money into their bank account.

https://www.moneysavingexpert.com/team-blog/2018/06/banking-at-the-post-office/

You have posted here as you are obviously concerned, if at all possible I would remove my name from their bank account and find an alternative arrangement (Post Office or third party access).

They have another account and it is set up on their phone so they transfer money from that account to my account with my husband's name on it and then I transfer the money to the person's account and pay their bills from there.

If my husband and I want anything we try to save for it first, we do not borrow if at all possible.

born_again

Jo4 said:

They have another account and it is set up on their phone so they transfer money from that account to my account with my husband's name on it and then I transfer the money to the person's account and pay their bills from there.

If my husband and I want anything we try to save for it first, we do not borrow if at all possible.

So maybe a idea to get the bills transferred to that account & they could then manage it all themselves. Rather than transferring to you & then you paying the bills.
Then the joint acc with you could be closed.

Jo4

born_again said:

Jo4 said:

They have another account and it is set up on their phone so they transfer money from that account to my account with my husband's name on it and then I transfer the money to the person's account and pay their bills from there.

If my husband and I want anything we try to save for it first, we do not borrow if at all possible.

So maybe a idea to get the bills transferred to that account & they could then manage it all themselves. Rather than transferring to you & then you paying the bills.
Then the joint acc with you could be closed.

They are not confident to pay the credit card bills themselves but they are relatively happy in their ability to pay the money to me.  They have missed reading the amount to pay the credit cards in the past so they are happy when they tell me the amounts as they think I will catch on if it is the wrong amount (ie a lot less than previous months) and they think that I will enter the amount to pay the credit cards correctly.  I do reconfirm a few times what they say if I do not see it in front of me.  I don't want to pay the wrong amounts on their behalf.