Money Moral Dilemma: Should I keep the perks from my grandma's bank account?

butterfly25

If it was my gran I'd tell her and she'd likely tell me to keep it (consider it commission) but I'd also get her random gifts, maybe regular flowers or fancy hand cream

keithyno.1

HillStreetBlues said:

In the real world away from an MSE "Moral Dilemma" sounds like you could be complicit in money laundering.  

Money laundering??! Are you serious? We're talking about an old lady who keeps her savings in cash under the mattress (or wherever she prefers to hide them) and the payment of her household bills here. 

Even though we don't know anything about the family who are the subject of this MMD I think it's highly unlikely she's shifting cash into her grandson's bank account for 'laundering' on behalf of a drugs gang or a terrorist organisation or some much outfit! 

Middle_of_the_Road

I expect trying to set up a bank account for an elderly relation, who by the sound of it has no suitable identification, would not be an easy task. As for how she's managed without an account thus far would be interesting to know. I know not so long ago most pensioners collected their state pension in cash at the post office. There were also post office accounts, not sure if they were the same as a bank account, but they suited the needs of many who never dealt with banks.

Dewpoint

Just imagine the browny points you'll earn from Granny when you show her how much interest and cashback she's earned simply by following your advice and help.

I'm sure you'll be rewarded in heaven and in her Will.

[Deleted User]

Is this a joke, stealing from grandma?

MGB_from_Kent

It is granny's money that is attracting the cashback so it would be kind to leave it in the account for an unexpected high bill in future - but equally you are doing the admin in paying the bills so you could see it as a reward.  Nevertheless do look at setting up a financial LPA - especially while granny still has the mental capacity to sign the paperwork for the set up.  We had a Financial LPA set up for my mum but it also meant that we were then included in important decisions about her care when she went into hospital - it proved that my sister and I were authorised to speak for her when she couldn't. Don't delay.

Wisp

Totally agree with Askbanker.  Safeguarding needed for both yourself and Granny so you arn't suspected of wrongdoing and she wont ever be without funds etc should you be unable. She needs her own account.

Jami74

And if Granny asks you to check her lottery tickets that she sent you to the shop for, because her eyesight isn't too good nowadays...... Would you have a moral dilemma telling her if she had won?

graymanuk

So the dilemma is whether it's ok to steal from your grandmother?  Mmmm....let me think.

Regardless, it's actually not the main issue here.  There's lots of good advice in other posts on how to implement this properly.  It's an unpleasant thought, but should your grandmother ever lose capacity, things can be really tricky without the LPA. Bringing in another family member is a good idea - stops any perception of malfeasance.  Maybe even see a solicitor to get advice.

kimwp

Instinctively, it feels wrong and that the interest and cashback belong to your gran.

From a logical standpoint, you are doing quite a lot of admin (making sure money goes into the account for the bills and to keep the account open, transferring  money back) and potentially taking on risk of if her not giving you the money in time to pay the bills. Presumably, you could have opened an account which much less overhead ie a basic account with a branch near your gran that she can take the cash to - with no cashback or interest. So if you take the interest and cashback, then your gran is no worse off than if you opened a basic account. By opening a more complicated account and giving her the interest and cashback, you are doing more work to save her money. 

If you phrased it "I opened a basic account to help my gran pay bills, should I open a more complicated account where I have to move money around twice a month, in addition to making sure her bills get paid, to help her get cashback and a small amount of interest?", I feel like the people posting above would be a bit less vocal in their outrage. 

Talk to your gran and propose splitting the cashback and interest between you?