setting up bank account

hi lovely people, anything l should know when setting up a bank account for my 22 year old daughter with MLD who lives at home? Thanks in advance X

[Steve__]

Hi There

Good question. I'm not an expert, and all circs are different, but that said...

I set up a joint bank account, all money technically not mine, but it lets me see everything and I can sort stuff out directly. Very useful! They also get a card and statements etc with their name on. I personally don't do online, and I think the bank can fix it so the card only does limited things.

I'd also suggest maybe a main joint account, and then maybe a separate little one, that they can have more control over with pocket money in. Saves headaches and prevents major thefts, etc

You might want to check out appointee and deputyship options. Others will explain it better than me.

Good luck, Steve

[Kemish in reply to Steve__]

Thank you so much for taking the time to reply, really appreciate it! Very useful tips, and she would definitely love having a card with her name on it 😂

[49Twister]

Does she have capacity to understand anything about bank accounts. My son is 50 and many years ago we had a joint account where all his benefits and my money went in. We still have the joint account where just his benefits go in but I have control of that account. I opened an account in my name only for my personal use, my pension etc goes in there, I think you need separate accounts so no confusionof who'smoneyit is. I also got him a card in his name only which I transfer money weekly from the joint account which is his money for what he needs each week. The banking app is great you can transfer money between accounts and see what is in all accounts with their name on and manage accordingly. Any big spends, bills come out of joint account. It works fine, he doesn’t have capacity for money.

[Kemish in reply to 49Twister]

Thank you so much for your reply, really do appreciate it, and once more lots of useful tips… She definitely doesn’t really understand much about bank accounts or managing money, but like you suggest l think it would be good for her sense of independence to have an account in her name, with money that is only hers to spend on what she needs each week 👍🏼

[HolisticMum in reply to 49Twister]

You are so right in having a separate account. Since my boys were small I always had their DLA paid into my current account. Now DWP want proof of money going in and I don't want my details to be shared with anyone. It's a privacy issue. We shouldn't have to do it. I'm not great with computers and wouldn't even know how to send a photo of what they want to my computer and get it to them. It's a headache with all they want.

[49Twister in reply to HolisticMum]

As I say many years ago when my son was 16 and started receiving income support in his own right we had a joint account. Many years later, I think 2015 when the benefits system changed I thought I need to separate accounts so their is no confusion. My son doesn't have capacity for finance but does understand why this was done, and that I oversee everything. It works so much better all his SS care contributions and utility come out of joint account. I transfer money from joint account to his account every week for shopping and activities. At the beginning of every week I top up his card to the level we put in place with supported living. If he needed extra for certain events or trips I would top up. All done on banking app no hassle. I would recommend if possible for you.

[Kemish in reply to 49Twister]

Great tips Thank you 👍🏽

[DrSarahmac]

Hi. We have set up two accounts in just my daughter's name otherwise it can get a bit confusing and it's important to be able to show what is hers at any time otherwise it could affect her benefits (don't forget they will claw back money if accounts go over £6K). She has one account for benefits and small earnings from part time work. I manage that so that we're sure all her bills are paid and there's enough for unforeseen expenses. The other account is just for her day to day spending. I set up Standing orders so there is enough regularly going in for her to socialise and get out and about and with no overdraft facility. I manage the main account online (with the app) and she uses the card to spend and can see her balance on the app. We have them at two separate banks so that she only has access to the spending money and the rest is protected from opportunists!! I do have PoA but I haven't needed to exercise them as it can all be done from the app. She has obviously agreed to this arrangement. We use Halifax for the main account and Metro for the spend account. Hope this helps

[Kemish in reply to DrSarahmac]

Thank you! Yes it really does help, again loads of useful stuff; and l really do appreciate it 🥰

[ssslondon]

What you can do all depends on whether your daughter has the mental capacity to understand and agree to opening a bank account. It can be explained in simple terms but she does need to show that she understands. If she won't understand then you can't open a bank account either for her or in joint names. A joint account is a good idea as long as the disabled person won't misuse it - if that's a possibility then it's probably not a good idea as you would jointly be responsible for any misuse.

I have 2 accounts for my daughter - both in my name and so far no problems (she's 26). One is a regular bank account where here benefits are paid and the other is an online account with only basic services where I can load up money for her daily spending - she lives in supported living so this gives the staff access to money she needs without being able to access her whole income and as it is an app on my phone I can keep track very easily.

One last point - you can apply for a deputyship if you feel you need that level of authority which would allow you to open a bank account for a person who does not have capacity to understand what they would be doing - but it comes with responsibilities and is a long form - well multiple forms - to complete and can take up to a year to be agreed. If you are her DWP Appointee you can manage all benefits and if she doesn't have any other income you probably don't need any further authority. For our more able young people getting their power of attorney is a good route.

[Kemish in reply to ssslondon]

Thank you once again! Loads of important points, appreciate you all! She does have capacity to understand and show she understands if explained in basic terms, but l am her appointee for PIP and this is the only income she receives at the moment 👍🏼

[DrSarahmac in reply to Kemish]

She may be entitled to universal credit too. My daughter was on working tax credit from about 18 until it switched to UC. She’s 38 now and still gets UC with an additional disability payment. Also a supplement for the limited capacity for work. If your daughter has PIP she should also get a free bus pass and many cinemas and theatres and other venues provide two tickets for the price of one to allow carers to attend with her. Don’t forget the blue badge. Apologies if you know all this already.

[Kemish]

l know this is something l should have thought about and sorted out a long time ago, but there always seems to be so much to think about and sort out, it kind of overwhelms me and then l end up doing nothing 🤦🏻‍♀️ bit pathetic l know! Think the last few years l am just realising she is growing up so fast, and l need to think about and make so many plans for the future l don’t where to start 🤯

[DrSarahmac in reply to Kemish]

One day at a time. This is clearly next on your list. Once that’s sorted you can move to the next thing. It can’t all be done at once. 👍

[Kemish in reply to DrSarahmac]

👍🏽🥰

[HolisticMum in reply to Kemish]

Not pathetic at all. It does all become too overwhelming when they become adults. I feel I cannot think sometimes because the system is too challenging.

[Kemish in reply to HolisticMum]

Yep! Thank you 🥰