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Bank Accounts and Mental Capacity

Posted on Tuesday, 21st March 2017 by

Bank Accounts and Mental Capacity

 

power-of-attorneyWhen discussing Lasting Powers of Attorneys (LPAs) with my clients, I am often asked if they are necessary. Surely if you have a joint bank account with your partner, a financial LPA is not needed? The assumption is that if you lose mental capacity then your nominated relative has full access to your income and pension so that you can carry on paying your bills. However, this is not always the case.

The guidance from the British Bankers’ Association states that if one joint account holder loses mental capacity then that Bank can decide to restrict the use of that account to essential transactions only e.g living expenses and residential care or medical bills. They could even freeze the account until a Court of Protection application has been registered which is an expensive and time consuming application process.

Therefore, my advice is always do a Lasting Power of Attorney as it is an insurance policy. Why gamble with your mental capacity and your individual Bank’s policy when you can appoint attorneys and leave out the guesswork.

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The information provided in all of our blogs reflects only a narrative of some elements to consider on the topic. The blogs do not contain considered legal advice and should not be relied upon as advice. Please see our website terms and conditions for full details of our disclaimer. If you are interested in obtaining advice, please contact one of our lawyers who will be happy and able to advise you on your own particular circumstances.

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Aimee Pyrah - Residential Conveyancing
Aimee Pyrah - Residential Conveyancing
aimee.pyrah@ehlsolicitors.co.uk 0116 266 5394
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