Joint bank account issues

[MartinWL]

There are some old threads on this but nothing recent. I have two parents receiving care, one at home and the other in a care home. One has more income than the other, and their current account is in joint names. I have POA for both and have full access to the account on behalf of my mother, who is in the care home. They're self funded but thinking ahead a few years when the cash might run out, I don't want one to be subsidising the other if that would mean not getting local authority funding until later.

I am wondering if any others have encountered problems with joint accounts that I might not have thought about. I can keep track of income and spending.

 

[canary]

The usual advice is to separate the joint accounts so that each parent has accounts only in their own name and income and the cost for care goes in/comes out of the appropriate account.

OH and I have joint accounts, but soon I will have to separate them

 

[thistlejak]

We were advised to separate the accounts of FIL and MIL when FIL went to a care home. We actually had to wait until the Deputyship came through but made a note of the balance on the day he went in and split the money from that point.
One thing that we didn't realise is that state pension belongs solely to one person. MIL was then entitled to pension credit as she had , like most women of her age, only paid 'married women's stamp' and she didn't get a full pension. She was also entitled to half of FIL private pension. This enabled her to finance the home.
Sadly FIL has just died and has not left a will , the separate finances are making sorting things out much easier and we are not having to halve everything for the paperwork - MIL will get everything anyway but we still have to get through the process.

 

[Bearz77]

The usual advice is to separate the joint accounts so that each parent has accounts only in their own name and income and the cost for care goes in/comes out of the appropriate account.

OH and I have joint accounts, but soon I will have to separate them

I realise this is rather an old thread but I wonder if you did separate the accounts in the end, canary? My mum went into a home in October and I’ve been activating POA on all her accounts, including her part of her joint account with my dad (who still lives at home, no capacity issues). I’m wondering. If dad/we should split the account so that his money doesn’t get used for CH costs once Mum’s savings in other accounts are depleted. Any advice gratefully received.

 

[canary]

I’m wondering. If dad/we should split the account so that his money doesn’t get used for CH costs once Mum’s savings in other accounts are depleted.

Yes, absolutely.
Use the POA to remove mums portion and then remove her name from the account so that it is only in your dads name.

 

[Bearz77]

Yes, absolutely.
Use the POA to remove mums portion and then remove her name from the account so that it is only in your dads name.

Thanks so much for the reply. We’ll get straight on to this.

 

[nitram]

@Bearz77
Both dad and you as POA will have to sign to convert joint account to a sole account in dad's name.
The bank will have a form, maybe available on line.

 

[Bearz77]

@Bearz77
Both dad and you as POA will have to sign to convert joint account to a sole account in dad's name.
The bank will have a form, maybe available on line.

Wonderful, thank you for the tip.