Follow the money

[SueLM]

Another question regarding finances. We currently have a joint account into which all income and all bills are paid. We have had this account for 30 years. I have 2 other savings accounts in my name only with some savings from the past etc..
The only income we have is from state pension, attendance allowance and my husbands 2 personal pensions. My income is carers allowance only.
Is there really anything to be gained from having 2 separate accounts - even if I transferred 50% of his personal pensions into my personal account, we still need to pay all the bills - Who then pays the bills ? and would we just end up transferring it all back into a joint account to manage the household finances.
I am thinking with no income of my own, the fact that its in joint names is not difficult to see who the income belongs to when social services start means testing at some point.
Does this make sense - probably not ha ha ha

 

[MartinWL]

The crunch will come if your husband needs carers at home or to go into a care home and you are not self-funding. As he seems to have more income than you do it may not matter much right now but will get messy if he has to pay care home fees in the future. The thing to beware of is your income or savings being used for his care.

 

[canary]

Hi @SueLM
When I recommend splitting accounts I am usually thinking of the savings account, which is something that you have already done. There is going to be a need for a joint account to pay household bills, which seems to be mostly what your joint account is for.

When SS does a financial assessment for LA funding they look at accounts solely in the name of the person receiving the care and half of any joint accounts, so I think I agree with you that, in this case, there is little point in splitting this last joint account.

The only time it might be helpful is once he moves into a care home, because it then becomes a little more complicated. If he needs LA funding the AA will stop and you will have to pay his state pension and half of his private pensions to the LA, even when he is fully funded. He will also not be liable for things like utility bills for the house (as he is no longer living there), or your bills for things like food, clothing etc. If you need any means tested benefits then having a joint account might muddy the waters.