Managing someone else’s bank account when they do not have mental capacityĪ person does not have mental capacity if they cannot understand, remember and act upon appropriate information and so cannot reliably make decisions for themselves. Some enduring and lasting powers of attorney can also be used when the account holder has mental capacity. For more information, contact a solicitor or an experienced adviser (for example, a Citizens Advice Bureau). There is a standard form of words to grant an ordinary power of attorney. However, an ordinary power of attorney stops being legal authority if the donor loses mental capacity. This enables you to make financial decisions on behalf of the account holder (known as the donor). A third-party mandate is not appropriate if the account holder is losing the ability to make relevant decisions themselves.įor more information about getting a third-party mandate to manage the account of someone who has mental capacity, you and the account holder should speak to the bank or building society.Īnother way of banking on behalf of someone who has mental capacity is by having what is called an ordinary power of attorney. If you have the right to handle the account of someone who has mental capacity, you have a ‘third-party mandate’. This may be for convenience or because of the account holder’s long periods of travel or physical disabilities. Managing someone else’s bank account when they have mental capacityĪ person has mental capacity if they have the ability to understand, remember and act upon appropriate information and so can reliably make decisions for themselves.Īn account holder who has mental capacity can authorise someone else to have access to their account. The bank or building society can give you full details of the documents they accept. Proof of your address – a recent gas, electricity, water, landline phone or council tax bill, a letter from the DWP or HM Revenue & Customs, or a letter from an appropriate person (for example, the matron of a care home) Proof of your name – your passport or driving licence The documents you need to provide to prove your name and address include the following: Proof of the account holder’s name and address (if the bank or building society has not already had this) They will need:Įvidence of your authority to act for the account holder For example, an account holder specifying that both of their children should authorise withdrawals from their account would work well for a simple savings account but would not work if transactions needed to be carried out by phone or online.īanks and building societies will always need to check specific documents before they can let you manage another person’s account. It is important for the account holder to think about how any specific requirements or arrangements may affect the running of their account. If you are given the authority to handle another person’s account you normally have the same power to manage the account as the account holder, depending on the account’s terms and conditions, security procedures and any requirements specified by the account holder (called the donor in the case of a power of attorney) when the arrangement was drawn up. The ways this can be done are set out in this guidance. Banks and building societies understand that it is sometimes necessary for a customer’s account to be handled by another person.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |