Why You Should Consider Allowing Your Trusted Relatives To Sign on Your Bank Accounts
There are a few reasons that you would need someone else to operate your bank account if you could not.
The 2 main ones would be
This is due to the growing trend in fraud and identity theft.
This can obviously give rise to problems when it is not possible for you to access your own bank account which could be at a time that you most need it.
Due to these reasons there are 3 steps that you can take
The main thing is you choose the right steps for your situation.
Making an account joint will usually allow any parties to sign for any transactions and request information with regards to the account.
Account facilities such as cards and cheque books will also be issued without a problem.
The downside of a joint account is that the funds present in the account is treated as any parties named on the account meaning this could have implications with the Inland revenue or Benefits Office.
A Third Party Authority for signing rights will be ideal for withdrawing funds in a bank, cash point machine or sign any cheques.
You should also be able to request statement information and set up regular payments.
Usually though if the account holder becomes mentally incapable of dealing with their affairs, the third party arrangement will have to cease.
The will be no alternative in this circumstance but to obtain a Power of Attorney.
The Power of Attorney will allow access to the accounts as if the attorney's where account holders.
The problem with the Power of Attorney is the cost involved and the time it takes to put the documents in place, especially if the donor is mentally incapable.
The 2 main ones would be
- Due to disability or illness
- Visiting or living in another country
This is due to the growing trend in fraud and identity theft.
This can obviously give rise to problems when it is not possible for you to access your own bank account which could be at a time that you most need it.
Due to these reasons there are 3 steps that you can take
- Adding the person to your account to make it a joint account.
- Having the authority to carry out certain tasks by Third Party Authority.
- Registering for a Power of Attorney.
The main thing is you choose the right steps for your situation.
Making an account joint will usually allow any parties to sign for any transactions and request information with regards to the account.
Account facilities such as cards and cheque books will also be issued without a problem.
The downside of a joint account is that the funds present in the account is treated as any parties named on the account meaning this could have implications with the Inland revenue or Benefits Office.
A Third Party Authority for signing rights will be ideal for withdrawing funds in a bank, cash point machine or sign any cheques.
You should also be able to request statement information and set up regular payments.
Usually though if the account holder becomes mentally incapable of dealing with their affairs, the third party arrangement will have to cease.
The will be no alternative in this circumstance but to obtain a Power of Attorney.
The Power of Attorney will allow access to the accounts as if the attorney's where account holders.
The problem with the Power of Attorney is the cost involved and the time it takes to put the documents in place, especially if the donor is mentally incapable.