The son made payments from the joint bank account, using some of the money from the sale of his mother’s property. When Mrs Northall died, the son transferred the remaining balance of the joint bank account into an account where he and his wife were joint account holders. He claimed his late mother had authorised the payments and had said he could keep any monies left in the joint bank account after her death.
However, his claims backfired as they showed that Mrs Northall had been a beneficial owner of the funds in the joint bank account, i.e. that the money she had paid in was hers, and did not automatically pass to the son on her death even though he was named as a joint account holder. As he could not show that Mrs Northall had intended to transfer the beneficial interest to him, the Court ordered him to provide evidence for the payments made from the joint bank account so the Court could decide whether these were made on Mrs Northall’s behalf or on the son’s behalf.
It may seem easier when an elderly parent has difficulties accessing their bank to open a joint bank account with an adult child as the joint account holder. However, problems may arise if one account holder has a different attitude towards the money than the other. Lawson-West solicitors recommend that, instead of opening a joint account, a Property and Affairs Lasting Power of Attorney is drawn up instead. A Property and Affairs Lasting Power of Attorney enables you to appoint someone to look after your affairs on your behalf and can be put into place even if you still have capacity. The key advantages are that the attorney has to act in your best interests, provide accounts for your money and it is clear that the money is still yours. For further information on the advantages of Lasting Powers of Attorney over joint bank accounts, please see our page on Lasting Powers of Attorney and Joint Bank Accounts. If you would like to draw up a Lasting Power of Attorney, please contact 01858 445480 now or complete one of the on-line forms. You can make an appointment at any of our branches in Market Harborough, Wigston or on Uppingham Road in Leicester. We can also arrange a home or hospital visit if you are unable to attend any of our offices due to your ill health.
