My LO added me to all of her financial accounts when she was getting everything in order, including POA, her will and other documents together. I have financial and medical POA. I manage all of her bills, but she does have a checkbook. She has started a new habit (in the past two years) of writing a check without an amount, but with her signature and a date. Sometimes it includes the name of the intended recipient. Other times not. With ‘check washing’ scams that might not even matter. She’ll write these checks in advance of a service being provided, such as lawn maintenance or her haircut, etc. I find the signed blank, checks in various places, including her wallet, the side pocket of her purse, the glove compartment of the vehicle, and on the countertop at home. When I find them, I’ll show them to her and tell her that is not a safe practice and she (at the moment) tells me to shred them. I cannot curb this new behavior, and I am very afraid someone will find a check, fill in the amount and wipe out a good portion of her checking account. My solution is to open up a new checking account with a low balance. She can continue to write checks, but her entire primary account funds won’t be in jeopardy of this risky behavior.
I do not want to take away her ability to write a check. I’m trying to maintain whatever semblance of independence I can keep for her for as long as I can.
I guess my question is two-fold.
One. Is that a feasible possibility with the paperwork in order? Will I be able to set up an account with a lower balance with its own set of checks?
Two. I read somewhere in passing, and it may only be in the UK, but could the bank actually freeze the account if they find out a joint account holder has dementia? I have POA. I’m a joint account holder. The account is in both of our names. Is that something I need to worry about? She set things up this way so that I could handle the finances as if I were her in the event, whatever might happen, including, but not limited to possible dementia.
I would see an elder law attorney because merely adding your name to an account is NOT the way to do POA> You should be added as the POA with the documentation recorded and all checks should be paid out of the account signing as "my mother" by "her baby as POA". There are right ways and wrong ways to do this and MANY co-mingle accounts as you have done. This isn't the right way to go as the IRS can swoop in and empty think the account is yours, you can be accused of enriching yourself, your parent can be accused of gifting. You can't know WHAT in the world can happen if you do it wrong.
Go for a general hour of info with an elder law attorney on how to handle billing and how to handle accounts as a POA. Handle all issues with meticulous records of every penny into and every penny out of your parent's accounts on a monthly basis. Have a folder for each entity for which you pay bills with proper receipts and etc.
- Account freezes can be put in place by an account holder (in the event of a lost or stolen debit card), or the bank or regulatory authority.
- Freezes can occur for many reasons, including suspicious activity, suspected criminal activity, civil actions, or garnishments.
Read more here:
https://www.investopedia.com/terms/a/account-freeze.asp#:~:text=Account%20freezes%20can%20be%20put,%2C%20civil%20actions%2C%20or%20garnishments.
Why wouldn’t you just take your Mother off any Financial Accounts like yesterday, today, or tomorrow?
If your Mother has been diagnosed with Dementia, then she’s deemed to be incompetent- Obviously.
The only person that should be on her & your Bank Account is- YOU!
All of your mother’s money can go directly into your bank account & you can do whatever you want with it.
You’re your Mother’s he POA & she’s incompetent,
This is the Dementia Law in Michigan.
I wish the money for people with Dementia would go into a Trust instead, not an individual’s Bank Acct,
However if the Bank doesn’t ask, then they don’t know.
Your greatest concern- should be that your Mom could possibly take money out of her account, write a check, use her Debit or Credit Card with the assistance of someone else.
Do you have an Attorney?
You can always ask someone at your Bank or go to another bank.
Just ask them about your Mom having Dementia & being a joint Account Holder, right?
My Mother has Dementia too, but my Father is still alive & competent.
Always interesting to find out other laws in different countries.
Let us know.
I hope some of this helped you,
You cannot take someone's name off of their accounts. You can only act as POA, Guardian or conservator of someone's money but it remains their money in their name EVEN WHEN you control it. I served as Trustee and POA for my brother. He had NO CONTROL over his accounts as he GAVE that control to me. However the accounts remained ALL in his name, with me either as Trustee or POA, with me paying all bills and handling all things legally with a well written Trustee document and POA documents. HIS NAME remained on HIS MONEY until HIS DEATH when it was distributed by HIS trust and will to HIS beneficiary/ies.
The reason that Banks are so hard-bottomed about POAs is that people have the idea that when one is going to become incompetent a family member will swoop in and TAKE THEIR MONEY, which seems to be what you just advised.