Just wondering if anyone can provide clarity on whether my mother should have a new separate bank account from father who will be moving into care home. I recently spoke to a solicitor about this but confused as to what she should do as 50% of savings taken into account from their joint account so she isn’t penalised in anyway? Does the issue come into play if my father passes? I read somewhere they freeze the account but that can’t be correct as how would the remaining spouse get access to their money?
Separate bank accounts
- Thread starter Peggypoo
- Start date
At assessment counting only 50% for father's share is correct.
Ongoing it make sense to turn joint account into two equal sole accounts so that care costs only come out of your father's account with none of them coming out of mother's funds which would happen if joint account was continually halved.
If father passes the balance in his sole account will be distributed according to his will or laws if intestacy.
With a joint account it would go to mother outside of any will
Ongoing it make sense to turn joint account into two equal sole accounts so that care costs only come out of your father's account with none of them coming out of mother's funds which would happen if joint account was continually halved.
If father passes the balance in his sole account will be distributed according to his will or laws if intestacy.
With a joint account it would go to mother outside of any will
I think Nitram is referring to how they carry out a financial assessment for care costs when someone goes into a residential care home. If couple have joint account they will only consider 50% of it when carrying out the assessment for care costs .
Thank you ! so my father’s pension could continue to be paid into the joint account and would my mother be able to transfer some of the money from the joint into her own account. She is worried about deprivation of capital which I explained doesn’t matter as she has equal right to 50% of the balance anyway?
It makes it more complicated if its a joint account
It is far easier to see where the money is going if the account is split at the beginning. At this point no-one will be looking at the account in your mums sole name and it will not be considered in any financial assessment for your dad. This will safeguard your mums savings so that they are not spent on care home fees
It is far easier to see where the money is going if the account is split at the beginning. At this point no-one will be looking at the account in your mums sole name and it will not be considered in any financial assessment for your dad. This will safeguard your mums savings so that they are not spent on care home fees
My mum doesn’t have her own account she would need to open one and transfer 50% out. She was worried about doing this at this stage as father has literally gone in home today. So presuming from what you are saying this is perfectly legal as 1/2 is hers anyway.
It's legal, it's what an LA financial assessment is based on.
Separating into two sole accounts makes ongoing finances much easier.
Opening new account at same bank as current joint account may make proof of ID easier, speak to bank about mum's new sole account and making joint account sole in dad's name.
50% of any non DWP pension, can be done by direct debit when sole accounts are organised.
I have carried on with a joint account using the POA registered with the bank. My husband's collapse was so rapid that there was no opportunity to seperate in advance of financial assessment.
I retain 50% of my husband's private pensions. I have opened a cash ISA in my name to put my current savings into.
I am sure seperate accounts are better but I was firefighting from the start. I have also arranged to change the ownership on the house into tenants in common so I can change my will in case I die before my husband so I am able to benefit our children. That also has to be done with a trust for my husband to avoid deprivation of assets. If I die with any assets in joint accounts they automatically belong to my husband. This is not corrected by the new will.. I hope this helps with hindsight, a wonderful thing, I think when our people are in the early stages of dementia that we need to make some of these changes early.
I retain 50% of my husband's private pensions. I have opened a cash ISA in my name to put my current savings into.
I am sure seperate accounts are better but I was firefighting from the start. I have also arranged to change the ownership on the house into tenants in common so I can change my will in case I die before my husband so I am able to benefit our children. That also has to be done with a trust for my husband to avoid deprivation of assets. If I die with any assets in joint accounts they automatically belong to my husband. This is not corrected by the new will.. I hope this helps with hindsight, a wonderful thing, I think when our people are in the early stages of dementia that we need to make some of these changes early.
