Joint POA account queries

vigman

I hold a joint account with my mother as I hold power of attorney and have a couple of questions please.

First, when my mother dies, is this account frozen or will I still have access?

Second, I am just about to sell her cottage to not only pay for future care home fees but to repay my brother and I approximately £90,000 each for fees we have already paid. Can someone please advise how I make these large payments? It’s a NatWest account.
TIA

Valli

Just to let you know you may need proof that you are owed the £90k (each) as, if her money runs out and she needs to apply for support (or you, on her behalf) you need to show there has not been deliberate deprivation of assets

https://www.ageuk.org.uk/siteassets/documents/factsheets/fs40_deprivation_of_assets_in_social_care_fcs.pdf

elsien

With regards to a joint account the power-of-attorney is irrelevant under death and the money in it reverts to you as the other account holder so it shouldn’t be frozen. That is the bank process. So that money would not form part of her estate as far as the bank is concerned.

A different legal discussion is whether any of the money in it was actually yours or whether you were added purely for convenience in which case any beneficiaries may be arguing that the money does not belong to you. So slightly separate issues.

So if it is just your mother’s money, you might want to consider taking your name off it and operating an account just in her name via your power-of-attorney to save future complications.

I would suggest talking to Natwest about the processes and what’s going to work with the type of account. You also need to keep clear records showing what you and your brother have paid to the care home in case anyone checks up to any point with regards to the power of attorney. Just as a safeguard for yourself.

FlorayG

The joint account money definitely becomes yours. You just need to take a copy of the death certificate into the bank and they will remove her name from the account. I did this with my mom, it was straightforward.

As for any other beneficiary claiming that money isn't 'really' yours, any couple with a joint account runs the risk of one of the pair withdrawing all the money. Joint accounts are based on trust

HobgoblinBT

When one party to a joint account dies, the survivor notifies the bank and exhibits the death certificate. The account is then retitled to the survivor. The survivor therefore retains access to the money.

I have recently had such a situation. Some years ago my father added me as a joint account holder to one of his accounts and then later I was granted lasting power of attorney over his finances. This enabled me, for example to order items to be delivered to him on my Amazon prime account that he paid for. He died in August this year and I had access to the joint account money continuously. Technically, the money was in my name but as he contributed 100% of the balance I am including it in the probate application as that is the right way to deal with what was my dad’s money. It has, however meant that I have been in a position to settle bills such as his funeral and wake bill and an outstanding amount owing to a care home.

Hope that helps.

vigman

https://forums.moneysavingexpert.com/discussion/comment/82163292#Comment_82163292

Thanks, I have kept a good spreadsheet of payments made on her behalf plus screenshots of some lump payments to her account.

vigman

https://forums.moneysavingexpert.com/discussion/comment/82163731#Comment_82163731

Very helpful thanks!