Wife's use of my bank accounts.

35har1old

Emmia said:

The simplest solution is to convert the accounts to joint accounts - whoever survives then still has access to the money in the accounts 

Not all savings accounts can be jointly held

Emmia

35har1old said:

Emmia said:

The simplest solution is to convert the accounts to joint accounts - whoever survives then still has access to the money in the accounts 

Not all savings accounts can be jointly held

No, but there's a need to have enough accessible to either party in the event of the others demise. 

So rather than putting all the money for ISAs in one person's name, the ISA contribution could be split 50/50 into two accounts held individually.

The point really is that a current account and definitely "emergency savings" should ideally be jointly held - if the wife is accessing/managing the husband's account which is in his sole name, it's against T&C's but in reality they are managing a joint account - so that should be formalised with an actual joint account.

Cobbler_tone

I have first hand experience of this at the moment.
My mother-in-law recently passed and it comes down to the balance of accounts and the bank. As the amount was under £50k then Nationwide will transfer it to any nominated account as directed by the next of kin. It was done instantly with a trip to a branch two days ago. 
If accounts go into probate it’s a bit more protracted.

maman

Emmia said:

maman said:

I know things were different for older people but I've had my own accounts (current and savings) since I was a student and DH has his. 

My mum (late 70's) has always had her own accounts as well a a joint account... but I have a colleague in their 30's who only has a joint account with their spouse. I think it's just what people prefer to do - age isn't always a good indicator.

You're right @Emmia it's not always a generational thing but it was more common in the past.

I think that some young people see it almost as a 'badge of honour' that they get into a relationship and open a joint account.

I've been questioned on these boards and within our own family about why DH and I have totally separate accounts. 

Emmia

maman said:

Emmia said:

maman said:

I know things were different for older people but I've had my own accounts (current and savings) since I was a student and DH has his. 

My mum (late 70's) has always had her own accounts as well a a joint account... but I have a colleague in their 30's who only has a joint account with their spouse. I think it's just what people prefer to do - age isn't always a good indicator.

You're right @Emmia it's not always a generational thing but it was more common in the past.

I think that some young people see it almost as a 'badge of honour' that they get into a relationship and open a joint account.

I've been questioned on these boards and within our own family about why DH and I have totally separate accounts. 

I follow my mum's example, our salaries go into personal accounts, we have our own savings, but make transfers to joint accounts for mortgage and some joint savings. 

I had a boyfriend who was very (too) keen on the "all in" approach but he was almost certainly drowning in credit card debt, and I refused as I was almost 100% certain would have been bled dry (and then some) financially. I wasn't even willing to open a joint account with him, let alone put money into that account.

squirrelpie

Bostonerimus1 said:

However, to make wrapping up my estate easier I have my home, bank accounts and general investment accounts in a revocable trust that can be accessed by the trustees when I pass and avoids probate. My DC pensions pass directly to my heirs.

That sounds very sensible. Is it a US thing or are they available in the UK? If so are there any good documents that describe the basics for a newcomer? Thanks

squirrelpie

I've heard horror stories of people not being able to access a joint account after one account-holder has died. Does anybody have any experience as to whether these stories are credible?

FWIW, we each have individual accounts and incomes, and we use a joint account for all household payments in the hope of minimising future hassle. We each make regular payments into the joint account.

Bostonerimus1

squirrelpie said:

Bostonerimus1 said:

However, to make wrapping up my estate easier I have my home, bank accounts and general investment accounts in a revocable trust that can be accessed by the trustees when I pass and avoids probate. My DC pensions pass directly to my heirs.

That sounds very sensible. Is it a US thing or are they available in the UK? If so are there any good documents that describe the basics for a newcomer? Thanks

I think you can do something similar in the UK  - they are sometimes called "living trusts". I had an aunt who used one. I actually made a mistake in my previous post, my general investment accounts are NOT in the trust as that leads to tax complications. So I just have my house and bank accounts in trust so that the house avoids probate and my executors/trustees can access funds. I don't think they are necessary in many circumstances, but everyone should be planning for the inevitable and have something in place. So the OP should probably get joint accounts, a will and make sure beneficiaries are all up to date on DC pensions, insurance policies etc.

spreadsheeterapple

I echo the many posters advising you convert at least some of your accounts from your sole name to joint
- but it isn't just upon death that there would be problems for her accessing money, your sole-name bank accounts could be frozen if you lost mental capacity to deal with things, and that isn't just something which occurs due to dementia, you would also be without mental capacity if you were unconscious from having had an accident or illness or stroke for example.

If you've not already done them, I would recommend looking into doing Lasting Powers of Attorney; you can choose to grant power to eachother, and/or other family members or trusted friends, or a solicitor, though solicitors would charge for the work involved of course.

Cobbler_tone

After my partner recently lost her mum, the first action (after the initial very painful process) was to get added to her dad's main account, despite having power of attorney. There is a situation to work through where her dad wants to pass her mum's wealth to her (which he thought was detailed in the will and he is self sufficient) but it appears it was listed to go to him and then on to her. I know there is a trust set up for half of the property. My partner is the executor of the will, so it is a little complicated but I am sure they will work things through. TBH the main motivation is to help her dad get the affairs in order and the practicalities of sorting/closing accounts, direct debits, settling attendance allowance...as opposed to any money itself. The 'Tell us once' service is good but there is still a lot of admin to cover. We think she has 5 accounts will 3 different banks/building societies but they all seem really helpful. It is a very difficult situation for people when you are dealing with such a devastating loss but I guess it happens for most of us. 
It's a sensitive subject but I encourage my elderly parents to at least tell me where things are!...."all in the red box!"