Adding Name to Elderly Persons Bank Account

E

euro2000

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Elderly parent has agreed to add one of the family members (son) to their bank account. Are there any tax implications or anything else we need to be aware of? Elderly person is eligble for no DIRT tax as oaver 65. Will this bve lost?
 
There is a link on another post which will probaby answer this for you-it's on the post about DIRT and over 65s.
 
From my experience the tax implications while important are usually only a small part of the potential problems....

If your name goes on the account with your parent, and (sorry to be morbid here) your parent passes away, the proceeds of the account do not form part of your parents estate, but pass to yourself. That may be exactly what you and your parent want, but I've seen so many rows afterwards among families when they feel they are entitled to their share of that account. It's just something to be aware of.

To get around the problem there is a bank document you and your parent can sign, which gives you authority to sign cheques/debits on the account, but your name doesn't actually go on the account. This often suits the parent, the co-signer and the family best as the proceeds of the account then form part of the parents estate. (again, sorry to be morbid).

Hope that's of some help.

Regards,

BM
 
Thanks bank manager this is exactly what we need.
Is there any name for the form



>>QUOTE
To get around the problem there is a bank document you and your parent can sign, which gives you authority to sign cheques/debits on the account, but your name doesn't actually go on the account. This often suits the parent, the co-signer and the family best as the proceeds of the account then form part of the parents estate. (again, sorry to be morbid).

Hope that's of some help.

Regards,

BM[/quote]
 
Each bank will probably have their own version - if you explain what you want to the person you are dealing with i.e. (I'm assuming) you want authority to sign on the account without having ownership of the funds, they should be able to help you.

If you are going in to a BOI branch p.m. me and I'll let you know the number of the form you need (assuming the moderators are happy with this arrangement).

Regards,

BM
 
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