Stressing trying to move Mum's house money

[Fearnodarkness]

With Mum's care needs apparently getting larger, we sold her house early in the year. Now we are trying to split the money up a bit for safety reasons before deciding about the long term.

The first Fund we moved some money into, sent a Source of Funds (anti money laundering) enquiry, which in effect froze the account. There was some flurrying about a letter from the Care Home, but that seems to have been sorted out once someone at their end "took ownership" and just clarified. But they are a fund, and it took several weeks. Having this happen to your bank account is another matter.

It seems there can potentially be serious problems moving large sums of money even when you can prove right away where they come from. For institutions, the normally have contingency, but individuals or families who run their lives through one bank, this is terrible.

Now I am scared stiff - trying to find out more about what we should do to avoid this on the Web doesn't seem to be a great idea - you come across all the stories where families have had all their accounts frozen for long periods for the most flimsy reasons (or none at all other than that some individual in the bank - or maybe some computer - just decided it was a good idea). Some people have been thrown out and made bankless without an investigation. I know these are the "rogue bank" stories, but they are happening.

Has anyone else come across this situation, or have any insight in how not to get into it?

Thanks for any advice.

 

[Rosettastone57]

With Mum's care needs apparently getting larger, we sold her house early in the year. Now we are trying to split the money up a bit for safety reasons before deciding about the long term.

The first Fund we moved some money into, sent a Source of Funds (anti money laundering) enquiry, which in effect froze the account. There was some flurrying about a letter from the Care Home, but that seems to have been sorted out once someone at their end "took ownership" and just clarified. But they are a fund, and it took several weeks. Having this happen to your bank account is another matter.

It seems there can potentially be serious problems moving large sums of money even when you can prove right away where they come from. For institutions, the normally have contingency, but individuals or families who run their lives through one bank, this is terrible.

Now I am scared stiff - trying to find out more about what we should do to avoid this on the Web doesn't seem to be a great idea - you come across all the stories where families have had all their accounts frozen for long periods for the most flimsy reasons (or none at all other than that some individual in the bank - or maybe some computer - just decided it was a good idea). Some people have been thrown out and made bankless without an investigation. I know these are the "rogue bank" stories, but they are happening.

Has anyone else come across this situation, or have any insight in how not to get into it?

Thanks for any advice.

I'm not able to give you a great deal of advice here,I'm sure others will be along who have more experience of financial matters . I assume you have power of attorney here and are trying to open accounts. What I would say and others will correct me, is that if you are trying to use a discretionary managed fund, I believe you need the COP permission.

 

[Fearnodarkness]

Thank you both. Happily that isn't the issue in this case, but was resolved by a care home letter.

One problem is that banks and savings companies all seem to have different requirements for proving change of address and identity of the elderly person (who no longer has a driving licence) which puts pressure on the family and on the care home, and all the processes take much longer than they normally would. That is on top of people whose accounts have sometimes been suspended just because they have moved in or out a larger sum of money than normal - I am told this happens not so much with property sale proceeds, which normally come from a solicitor, but further down the line.

I've also been told that IPAs (financial advisors) get an easier ride because their bank is used to them handling client accounts. But I don't want to be forced to take on an IPA just to deal with matters of identification. That seems really disproportionate.