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

Katecooks

It's now really easy to set up LPA online (massively simplified in the last couple of years). Do not pay a rip-off solicitor for this service - unless you can't read and write/use a computer: all they do is fill in an easy form online on your behalf. My mother's charged her over £1000 when she did this after my Dad had a stroke and lost his ability to speak. We did ours online (be careful to use the correct Government site though).

ZeroSum

Katecooks said:

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?

If you bought something from Tesco for a relative for say £10. Would you therefore only ask for £9.80 since you've benefited from the double value of the clubcard points via 3rd party savings. If you would ask for more than £9.80 then you are stealing money from family using your logic.

JustGemini

Open an account in your grandmother's name... anything else is a no no...

marmar1963

If Gran doesn't have a bank account how does she receive her pension?
Even if it's a Post Office account she can pay her own bills through it.

MarriedtoFinn

If you are doing the best for your Grandma, could you convert this account to form a joint account with her?  Then you could do bank switches to get bonuses for her sometimes.  All the bills could be set up to be paid via Dir.Dbt.  Only the setting up is a task, and not a tough one.  Yes, you probably would need to still be paying in and taking out again the monthly min. pay-in, but again, once set up by Stdg. Ord. it just looks after itself then.  I think you should openly discuss all this with Grandma, and get her approval, and discuss also what to do with "profits"  cashback, interest, and switching bonuses.  You could suggest you go 50/50 as you'd be doing all the work, and keeping an eye on it, and providing the min. monthly pay-in that keeps the money rolling.  She's paying the bills that earn the cashback.
It does sound to others as a bit underhand, and it's obviously getting to you as well.
Maybe now's the time to set things straight.

JayD

I tend to agree with both the comments advising that this is NOT a sensible arrangement at all, and those that say this is Grandma's money and you should not be taking it for yourself.

However, like others here, I am very sceptical about the validity of this dilemma!

penners324

Utterly ridiculous. She should have her own account 

Thinking_about_this

I wonder how your grandmother's accounts were paid previously. Presumably, because you love your grandmother, you wanted to help her. So, you set up an account and you pay something into it to meet the minimum income requirements. However, you have been tempted to take the cashback etc on her spending.
Asking her if this is something she is happy with would be nothing short of coercion. Grandmother's dote on their grandsons and will do anything to please them. It isn't loving to take advantage of her love for you. 
You already know that taking what isn't yours is wrong.The money belongs to your Gran. Do the right thing, help your Gran out of love, not for reward. 
Giving into temptation leads to a deadening of the conscience and a spiraling of immoral behaviours. Do you really want to become someone who is less than honest?

Marvel1

You mean you set it up to help yourself.

primrose_penguin

I agree with others on here, your Grandmother needs to have a bank account in her own name, there is no harm in you helping her but the arrangement you have doesn't seem right, any interest should be hers, which it would be if the account was in her name. If you are able to take her to a bank (if there is one not too far from where she lives, they are few and far between nowadays unfortunately), or alternately set up an online bank account in her name, you can set up Direct Debits to pay for her normal costs like electricity, gas etc. I think you need to have a conversation with her about it and if she is finding things difficult perhaps she would be agreeable to an LPA for finances, with you as her attorney plus another member of the family, it is easy to do online and then just print it off for all necessary to sign (I have just done one for my husband as he has Alzheirmers). You will then be able to take money out for her etc. when needed for shopping etc. or have authority to pay with her card. If she is really set against having a bank account then you need to tell her about the interest you are receiving on her money, and give it back to her monthly. She may tell you to keep it but I think you know it is not right to take it without her knowing or you would not have asked the question. It is probably a comfort to her having her Grandson handling her finances and you are good to do it, but it must be done properly for hers and yours sake.