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

ZeroSum

John_Gray said:

ZeroSum said:

It's laughable that someone has tried to compare it to stealing lottery winnings 

Lottery winnings are usually £lots.  This is stealing, pure and simple.

How is it stealing? The bank are paying Rewards for the things grandchild is doing. You can't steal something that wouldn't exist.

ZeroSum

Here's another way of looking at it

At work we have various things in the go, like lottery bonus ball & Xmas savings to help those who are rubbish with money. Now the person running them (if they're sensible) will keep the money somewhere ringfenced earning interest. If they cream off the modest amount of interest, that's their reward for running the scheme. So far no one has questioned it or has an issue with it. And it's certainly not theft.

DAN56

Wouldn't sit right with me keeping it.

We have a similar thing. We order mum's shopping as part of our online supermarket delivery. My wife has a staff discount card, so when we split the bill, we charge mum the discounted cost.

ZeroSum

DAN56 said:

Wouldn't sit right with me keeping it.

We have a similar thing. We order mum's shopping as part of our online supermarket delivery. My wife has a staff discount card, so when we split the bill, we charge mum the discounted cost.

I don't think that is similar. You get the discount & charging what you actually pay.

If I bought something for a family member in Sainsbury's, and it was on the nectar price offer, I'd charge them what I'd paid ie they'd get the benefit of the nectar price. What I wouldn't do, is also give them the cash value of my accrued nectar points. And what's in the OP is effectively passing on the nectar point value. The bottom line is you charge what's on the receipt / invoice. If you make any gains elsewhere, they're yours to keep.

GB12

CapricornLass said:

NO.  Its your grandma's money that's attracting the interest and cashback.  The benefits and extra cash belong to her, not you.  And shame on you for taking advantage of on old lady who isn't up to speed with modern methods of handling money, and even more so for it being your grandma.

What the hell? you are making out he is a rip off merchant.  Look at all the work he's doing. Utterly disgusting remark. Shame on you for implying he is a thief. 

GB12

As an aside its his account not hers. Therefore the perks actually belong to him, so despite all the obvious rubbish the perks belong to him.

jedav

Share?  Discuss with grandmother?

Of course, if the account is in your name, it will be classified as your money for tax purposes (i.e. you'll be liable for any tax on any income).  Whilst you're clearly trying to help your grandmother, other members of your family may not see it that way and may consider you to be taking (a small) advantage, even if her bills are now cheaper if you pay by direct debit.  It always amazes me how the sniff of money seems to change some people's personality for the worse, especially where wills or expectations are concerned.  Simplest to keep things above board by having the account in her name, even if you help by managing it.  Keep detailed records of amounts and purposes, in case someone comes looking. 

If this information got to Social Services/NHS staff they might want to raise a Safeguarding Issue (sorry to be frightening, but it could happen if someone wants to get nasty and report it) in which case the court could appoint a third party to manage the money and charge your grandmother exorbitant fees.  Best to protect yourself, and her. 

Also consider a financial Lasting Power of Attorney (LPA) (forms online, £82 to register, you can fill it in yourself but make sure it's accurate, it can be set up to give you very specific limited powers, such as managing her account and dealing with bill payment only).  See www.gov.uk for more information.

eskbanker

PenJol said:

Hello, having experienced huge problems with a bank following the death of my mother, being unable to access her accounts to make payments while being financially stretched myself, I would suggest that while following the Power of Attorney route (if you do) you open an account in your joint names so that you can access funds after your grandma's death in case you need to.  My problems with the bank were ongoing and difficult even though I had been appointed legally by the Court of Protection to handle my mother's financial affairs because she was incapable.  Of course this needs gran's agreement and the rest of your family.  As for the question about interest etc, you have plenty of replies already, but I would be open and honest with gran and do what you do out of your good heart not expecting any reward.

With all due respect, that's a different issue - power of attorney is a method of managing someone else's money while they're still alive, but access to their money once they die is a separate matter, even if you actually have any right to inherit it, and there's nothing in the posed question that implies that the grandchild inherits grandma's money after her death or needs prompt access to it.

Katecooks

What you are doing is theft and it's a slippery slope before you start syphoning off a bit more money. I don't know what your financial circumstances are but if you pay tax or claim benefits, this account is in your name and technically you need to declare it or could be accused (and possibly convicted) of fraud. My advise is to close the account and re-open in your Grandmas name and let her enjoy the benefits of the interest (you could still use her bank account to go through your cashback account and take that as payment if you feel you must be paid for the extra work rather than do it out of 'love;). I took control of my parents finances during the last few years  of their lives (I had financial power of attorney) and ensured they got the maximum interest etc on their accounts. They have now died and I have benefitted by inheriting what was left of their money and knowing that I did a good turn for them. Only irritation is that my sister (who did absolutely nothing to help and care for them has inherited half), but at least my conscience is clear. Is yours?

Katecooks

Middle_of_the_Road said:

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.

Assuming the cash is pension money, she would have an ID book.