Talking to your children about finances! [shock]

That’s a strange coincidence BlueBelle. And rather worrying. Which news channel was it? It may well be repeated.

I only heard the very tail end so can’t really report on it but there was something on the news this morning about the concerns of elderly parents being encouraged to set up joint accounts with children
Is this just a coincidence that we have a thread on it ??
MaybeI m just be ultra suspicious of this new thread/poster?

if husband and wife have joint accounts and give POAs. make sure you have the same appointees on the Power of Attorney.

When an aunt and uncle granted POAs, when both their intellects were starting to crumble, they ended up naming one attorney in common and the other was different.

This caused endless problems because only the attorney they shared could access the joint accounts, I and the other one were excluded because the account was in two names and we only represented one name.

This caused endless inconvenience, as well as opening up the accounts to fraud, bcause two of the attorneys couldn't get access to check anything.

In fact there was no problem, we all knew and trusted each other, but it was a clear danger.

Our joint account was split in two for the purposes of assessing payment for my late husband's care. Half was deemed to be his.

In fact I got it all back as I successfully appealed the refusal of continuing care funding.

Me too. The survivor gets the lot when a joint account holder dies in the absence of a contrary intention.

Yes, GSM, that was exactly what I said to the Building Society. I would have also looked somewhat dubious joining her very healthy looking account after the LPA had been enacted. I was horrified to be honest that a bank would suggest this.

Indeed!

Germanshepherdsmum

The difficulty with joint accounts is who owns how much of the money and who is entitled to what proportion of any interest earned? This is relevant for benefits and care assessments and for tax.

When my Mum was assessed for her contributions to pay her home carer, my Dad was somewhat miffed that exactly half the money in their joint account was deemed to be hers.
He thought it should be a third, as his pension income was twice as much as hers, so to his mind two thirds of the money in their current account was his.
Not so apparently!

CalumM how did you find out about gransnet?

The difficulty with joint accounts is who owns how much of the money and who is entitled to what proportion of any interest earned? This is relevant for benefits and care assessments and for tax.

My Mum and I have a joint account and have had for years. I also have a joint account with my daughter for her Carers payments. I think they trust me well enough and I wouldn't abuse their trust.
As for a POA, my Mum gave me this years ago and I will sort one out for me with my sons. However, when Mum became immobile and needed me to do her regular shopping for her, either I had to take her card with me or she had to give up her bank card. When I queried this, the building society suggested I put my name on the account too because they would only issue one card. I pointed out that being a POA was a very different thing and that if it became a joint account there were legal implications. They were unmoved by my protestations. Strangely other accounts seem to be able to issue a POA card.

Personally I work in tech so I wandered whether there were any interesting solutions people use to collaborate with their grown up adult kids before it gets to needing a POA

Do a POA earlier rather than later! Too many people leave it too late

😊

I definitely wouldn’t go the joint account route - could cause more problems than it solves.

Yes that's what I was beginning to think!
Thank you for your advice 🙂

When I did mums estate everybody was helpful and accepted death certificate except a couple of government departments who insisted on probate being granted, thankfully it was a relatively minor amount.

I think that would be a good idea. Hopefully it will give you peace of mind. I definitely wouldn’t go the joint account route - could cause more problems than it solves.

Thank you GSM, I could ask his banks about this 👍

Some banks will release money on production of the death certificate, if bills need to be paid before probate is granted.

Unless parents become confused or otherwise unable to manage their affairs, I really don't know why their children need to know about things like finance or health.

But mine is, and I have to manage everything for him. I do this quite easily by using his online banking, which he set up years ago when he managed his affairs himself.
My siblings and I all have both PoAs in place.

My concern currently is how to access Dad's account to wrap up his affairs when he dies, as the PoAs will end and his accounts will be frozen. There will naturally still be bills to settle.
I have discussed having a joint account with him: Dad can't understand why I couldn't just use his own money as normal, though he trusts me to do what I think is best.
My brother is in agreement but raised concerns about how it could impact my own financial status, especially if I needed a care assessment myself.

Overthinking it... ?

Unless parents become confused or otherwise unable to manage their affairs, I really don't know why their children need to know about things like finance or health. I often hear people complaining that their parents haven't told them about hospital appointments or health concerns, and that they (the children) 'have a right to know'. No, they don't.

Just because people are older it doesn't mean that they lose the right to privacy if they want it. It is perfectly possible to have a close relationship with others without having to let them know everything about your life.

No need, we are open and trusting as a family, me and AC. I help financially when I sense a need. POA in place and will is done and both via solicitor. Paperwork place is known by all my AC. No joint accounts.

The op is condescending and I am glad he is not my son

GSM - sadly, you are right to raise the potential for financial abuse. A small business owner in my town served a jail sentence for using his mother's money to facilitate a very pleasant lifestyle.
His mother lived nearby and was becoming a little forgetful. The other brother was some distance away and encouraged the setting up of a joint account with the local son for him to keep an eye on things. It came to light when the mother needed a care home and there was no money left in the account to pay for one.

Our children have POA for when we are incapable of managing. Until then, we will cope just fine, as we've always done.

Joint accounts other than with a spouse can produce problems with assessments for care home fees and tax. They also lend themselves to financial abuse.

What is it that you are wanting to do? Is she no longer capable of managing her finances? Does anyone have Power of Attorney?

If not you need to apply to the Court of Protection to become their deputy, but the rules are stringent.

I am not sure what you mean by "potential transition." - Transition from what to what?

My adult children know nothing at all about my finances, except that I am fine and they get nice presents! They have no wish to nose around on this subject.