Opening a bank account in my name for someone else

[itsonlysubterfuge]

A bit of backstory first.

My MIL has ME and a very hard time with her memory, therefore she can't really be trusted with her money. Normally FIL deals with the money, but she has told me and my husband that she thinks he took her money and used it for something else. When she has asked him about he says that he took it out of her account and put it somewhere safe. She has a small eBay business set up and uses that bank account for her paypal. My husband offered for us to open up an account for her, but keep it secret from FIL so she can save up money and use for holiday/spending money. I don't think she will be able to get a bank account because of her poor credit, so my husband thought we could open the account in our name, but it would obviously be her account.

I'm not sure how I feel about this. I thought I would ask if anyone knows about the legalities of it. Is there anything that we should consider before doing this? Can anyone see any problems or any benefits to doing it this way? I just want to make sure we are more knowledgable before we go ahead to do this. Thanks.

I think it would be illegal. I certainly wouldn't.

No no and no!

Get her account and let her give you card and PIN, or the really legal way get power of attorney for financial affairs.

You are credit checked for opening a regular bank account?

I would understand if you were applying for an overdraft, but I never knew you were checked for a regular current account.

Could you do a trustee type account? In your name, but for someone else. Like my DD's saving account is in my name, but RE her name.

She can open a Barclays Basic or a Co-op Cashminder if she has a poor credit rating. It would be better for her own credit rating if she has her own account that is run well. She could give you the card and PIN number

Has to be in her name . Lots of banks offer basic accounts even for those with poor credit history or bankrupt. To do otherwise would expose yourselves to accusations of tax avoidance, fraud , money laundering etc.

Get legal advice, I think you would really need a Lasting Power of Attorney.

Does it have to be a bank? We've done this with my 18 yr olds money in a building society as she's still too daft to turn it all over to her in one go. We explained what it was for and it was fine.

Your mil could probably open one in her own name then even.

I would take legal advice before touching this with a barge pole.

I think you also need to get to the bottom of "FIL took the money and put it somewhere safe."

He might really have done so, precisely because of her memory issues. (I have M.E. myself, so know it's bugger for this and other cognitive stuff.)

If not, there are other issues here which also need to be dealt with.

She can open a basic bank account and set up a third party mandate whereby you can be a signatory on the account but it won't be linked to your credit file, it's all her money and her responsibility. If you trust FIL is it possible she could accuse you of similar if you have access to her money? If so I would be incredibly wary of being involved.

That's what I was thinking, Rockchick.

Either way, you need to find out more about this "FIL took my money" thing.

MIL could end up believing everyone is stealing from her, refusing to accept involvement in her finances, but being unable to run them herself.