Should I keep our joint bank account ?

Katiebobbs

A long time back my husband added me onto his bank account, so it became a joint account. This was because he has a longterm illness and was struggling to use his hands for signatures and his ability to speak on the phone. Its worked fine as but as his health deteriorated couple of years back I was forced to use the Lasting Power of Attorney. Now as his health declines with the added pressures from dementia, there may be a time when I can no longer manage his care at home. He is in receipt of Continuing Health Care (CHC funding), so if we are forced to put him into care the costs will be covered. However as I am entitled to only part State pension I will need to ask for more help with rent/council tax and pension credit etc (we do get a little help now).

My question is although my husbands pensions will still be paid into our joint account, that money is not mine and I would not feel right using it. Will it still be seen as money available to me and will it affect any help I might get ?. Should I take my name off the joint account ?

gwynlas

You will be financially assessed as a couple and whilst they might take part of his pensions to pay for care you will have to be left with sufficient income to meet your needs.

It would make no difference whether accounts in sole or joint names so it is probably best to leave things as they are so that you can continue to draw on thiss account.

NedS

I disagree with the reply above.

If your husband has to go into permanent residential care, then he no longer lives with you and you effectively become a single person for benefit purposes, including Pension Credit, Council Tax and housing costs.

The main issue regarding the joint account is that 50% of the balance will be seen as yours and will be adjudged to be your capital, which may affect your entitlement to benefits if it takes you over the capital threshold. As it's his money (in your words), it would probably be better if you removed yourself so it reverts to his sole account. You have LPA to assist him managing his financial affairs as required, so no reason to be a joint account holder on his account.

Katiebobbs

Thank you for your answer. That makes sense. However do they assess us as a couple when we are no longer living at the same address ?. The small benefits we currently receive are in my husband's name so I'm assuming if he moves out, I'd have to apply in my own name !.

NedS

If your husband permanently moves out (into care) then he'd need to notify of a change of circumstances for a change of address and that he no longer lives with a partner.

You can then claim benefits as a single person (not living with a partner). The fact you are married is not relevant.

Brie

I strongly disagree with NedS's comment about removing yourself from his account. What other money do you have access to? If your income is minimal and his is all going into an account you can no longer access then you've got a problem. How can you pay the household bills, maintain the house itself, get you both to and from appointments/hospital/care home eventually with the car or the ability to pay for taxis?

I agree that this may be an issue for benefits but it is a normal assumption that husband's (often much higher) income is there to be used by his spouse/partner. I am assuming you may have been raising your children and supporting his career so you are entitled to at least some of that money. Certainly that would be the case if you were getting a divorce.

Meanwhile I assume he's getting Attendance allowance?

GrubbyGirl_2

He will still get his state pension even if he is funded in a care home under CHC plus any private pension. He will lose certain disability benefits (attendance allowance, PIP etc) after 28 days. The NHS will only fund his care so he will still need money for personal expenses such as clothing, toiletries and any social activities in the home.

Please contact your local Age UK who have specialist staff who can help you navigate all this and go through it all with you. They will also help you apply for any benefits in your own right of you are entitled.

HillStreetBlues

How much is in the bank? as might not matter what you do.

NedS

@Brie wrote:

I strongly disagree with NedS's comment about removing yourself from his account. What other money do you have access to? If your income is minimal and his is all going into an account you can no longer access then you've got a problem. How can you pay the household bills, maintain the house itself, get you both to and from appointments/hospital/care home eventually with the car or the ability to pay for taxis?

It's still his house, even if he is not living there, so it is perfectly reasonable he still pays towards the bills and any maintenance upkeep of the property, and pay for his own transport costs etc. @Katiebobbs can assist with this under their role as attorney (LPA).

As I stated above, it is only really an issue if having 50% of the capital in the joint account is likely to take them over the capital threshold for means tested benefits.

Brie

@NedS

Ok - I get what you're saying. I do get the concept that if she is there by herself and might be eligible for more benefits especially pension credit that it may be better to not have her name on the currently joint account. Frankly I don't know what DWP would do in that situation if she is paying bills from his account to maintain the house that only she lives in - will they actually disregard it?

But as HillStreetBlues notes it may not make any difference if the bank balance is relatively low. If there is quite a substantial amount then taking her name off the account sooner rather than later might work better as it's less likely that she'd look guilty of deprivation of assets.

NedS

@Brie wrote

Ok - I get what you're saying. I do get the concept that if she is there by herself and might be eligible for more benefits especially pension credit that it may be better to not have her name on the currently joint account. Frankly I don't know what DWP would do in that situation if she is paying bills from his account to maintain the house that only she lives in - will they actually disregard it?

Pension credit is based on income (and savings). How bills are paid and by whom is not relevant (nor is how OP spends their income) so I do not think there is anything for DWP to consider or disregard? I am sure there are plenty of benefit claimants who receive a little help from family members towards whatever.

The most relevant fact is that once the husband moves into permanent care, they no longer reside together as a couple and the OP becomes eligible to claim means-tested benefits (PC, CTR, HB) as a single person as they can now answer NO to the question: Do you live with a partner?

If the capital in the joint account is not relevant, either because the OP will be under or over the capital thresholds regardless of that amount, then there is no reason to remove themselves. But if the capital in that joint account takes them over the threshold, removing themselves will increase their entitlement to support to which they are entitled to claim.