Joint Accounts Routinely Frozen if Mental Capacity Lost
Couples with joint bank accounts may find that their account is frozen if one of them loses mental capacity.
Guidance issued this year by the British Bankers’ Association says that if you are a joint account holder and the other account holder becomes mentally incapable, you do not have an automatic right to access the account, unless you have a Lasting Power of Attorney, Enduring Power of Attorney or order from the Court of Protection. Third party mandates also end on incapacity.
Existing standing orders and direct debits may be allowed to continue, but other payments will be frozen.
To avoid this problem, Lasting Powers of Attorney should be made so that someone can act for the account holders if mental capacity is lost at a later stage. At Gill Akaster we draw up Lasting Powers of Attorney and can deal with all the registration formalities so that you know you have the right arrangements in place. Contact: Isobel Yandle on 01752 292566, isobel.yandle@gillakaster.com
Isobel Yandle, WTP department