Joint Account Warning

JOINT ACCOUNT WARNING - There is a general misconception that when one party loses capacity the party who still has capacity can still access the funds in the joint account.  Much to your surprise, this is not the case!

The British Bankers’ Association guidance states that ‘if one joint account holders loses mental capacity, banks and building societies can decide whether or not to restrict the use of the account to essential transactions only until a deputy has been appointed or a power of attorney registered ’.

The bank will usually require either:

*  a registered lasting power of attorney for property and financial affairs;

*  a registered enduring power of attorney; or

*  a deputy order from the Court of Protection.

The reasoning why Banks require such evidence is to protect the account from fraudulent use.  This, of course, can be very frustrating for the capable account holder who simply wants to manage an account in which they have an interest.

If you need further help and advice regarding Lasting Powers of Attorney please call 01458 555013