A Quarter of
Over-45s Have Access to a Relative's Bank Account
Despite this, a significant number of adults in the UK are giving their family members unregulated access to their finances. In a recent survey* of 2000 over 45 year olds, a staggering 25% said that they have access to a relative's bank account who isn't their spouse.
Of these, 18% have access to their relative's bank card or the log in details to their online banking, while 7% have set up formal joint bank accounts. Of those that have set up joint accounts, over 35% said this was with a parent, with 18% having a joint account with a sibling.
By setting up joint accounts with relatives or granting them informal access to bank accounts, people are potentially putting their finances at risk. Often issues only come to light after death, when bank accounts come under closer scrutiny and evidence of financial abuse may surface. This can cause significant distress for those left behind and can also add years to the Probate process.
Furthermore, this type of arrangement can also place the family member (who was added to the account) in a position whereby they could face allegations of financial impropriety after the account holder's death, because they weren't accessing the account under the correct legal process of using an LPA.
Another major consideration when holding a joint account with a family member is that upon death the account and its contents will automatically pass into the name of the surviving owner. This means that the money may not be included as part of the deceased person's Estate and not distributed in line with the terms of their Will.
A more secure and legally robust way for someone to grant a relative access to their finances is to put a Lasting Power of Attorney in place.
Of those surveyed, 79% said that they don't yet have a
Lasting Power of Attorney in place. Despite what you may think, it's really
quick and easy to set up an LPA with professional support, and with LPA Kent, it
costs from just £195.00 for a single LPA.
*Survey data courtesy Co-op Legal Services. All rights acknowledged.
