Splitting a joint bank account

Discussion in 'Legal and financial issues' started by nettle, Jan 11, 2016.

  1. nettle

    nettle Registered User

    Jan 11, 2016
    Since my dad has been assessed as self funding for home care I've been told by a couple of people that we should split their joint bank account to make sure that mum's half doesn't get used up as well. All their money is in one joint account because they were trying to simplify their finances.

    Is there any benefit to breaking up the account into three, with a joint current account for day to day living plus two equal accounts, one for each of them, and then paying for dad's care from his own account?

  2. fizzie

    fizzie Registered User

    Jul 20, 2011
    I'm sorry I don't have any experience of doing this but what you have suggested makes sense to me. I'm replying to bump it up to see if anyone else can help
  3. Grannie G

    Grannie G Volunteer Moderator

    Apr 3, 2006
    There's no need to split a joint bank account as long as it is officially in both names . My husband and I had joint accounts and half the money was credited to each of us.

    This was years ago so I would check to make sure it still applies.
  4. meme

    meme Registered User

    Aug 29, 2011
    Your Mum would feel more secure by having her own account I am sure..it seems to make good sense to me
  5. arielsmelody

    arielsmelody Registered User

    Jul 16, 2015
    I think it makes sense for your mum and dad to have two separate bank accounts, then there is no problem with your mum using her own account without worrying about registering powers of attorney or keeping detailed records etc. Whoever has power of attorney for your dad's account could calculate your dad's share of household expenses, and transfer that into your mum's account, and then she could pay bills from her own account without worrying about having a third account as well.

    If his pension is supporting both of them, her share could be transferred directly into her account and then she'd know exactly how much she could spend/save - and if she needed care in the future, it would be clear to everyone what her own assets are.
  6. cragmaid

    cragmaid Registered User

    Oct 18, 2010
    North East England
    I would suggest that Mum opens a second account only for her pension or savings, but keep the joint account open too. If Dad predeceases Mum, any account in his name alone would be frozen until probate is granted...possibly denying Mum any access to funds for some time.
  7. LynneMcV

    LynneMcV Volunteer Moderator

    May 9, 2012
    south-east London
    My husband and I have a joint account as well as separate accounts.

    His pension and my salary go into the joint account. As we are both jointly responsible for the mortgage, household shopping, household repairs and household utilities we have always pooled our joint income to take care of those things and will continue to do so unless circumstances change and he needs to go into a home etc.

    The separate accounts are where I put his PIP payments and personal gifts such as birthday and Christmas money. Likewise in my separate account I hold gifts made to me.

    Should my husband end up going into a home I will deduct his share of the mortgage from his pension and put the remainder into his personal account - so yes, I think when a care home comes into play it is easier to keep some things separate.
  8. nettle

    nettle Registered User

    Jan 11, 2016
    I think that's what is supposed to happen. I was hoping there was some clear cut advice about how to handle it, as mum and dad are reluctant to make any changes to the way they have things set up.

    Thank you all for replying.
  9. nannylondon

    nannylondon Registered User

    Apr 7, 2014
    My husband and I have joint accounts and when he went into care home the financial assessment split the money between us both savings and current account hope this is helpful xx
  10. realist1234

    realist1234 Registered User

    Oct 30, 2014
    There may not be a 'need' but I would suggest it would simply make things easier for your mum to know that your dad's money which is being used to pay his care home fees is held in a separate account, away from your mum's own money. It just makes sense.

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