In those circumstances, funds that the parent regarded as her own could potentially be treated as available to their child, despite having only been added to the account for convenience.
Perhaps the most significant issue could arise in the event of the death of the other account holder. Joint accounts usually pass automatically to the surviving account holder by the right of survivorship. This happens outside of the Will.
For example, a mother’s Will could divide her estate equally between her daughter and her son. However, because the mother has a joint account with her son, all the money in the joint account would pass directly to the son, rather than under the terms of the Will. This results in the son inheriting, possibly substantially, more than the daughter – an outcome that was unlikely to reflect the mother’s true intentions.
This type of situation can easily lead to family disputes, disappointment and, in some cases, legal claims.
An LPA offers far greater protection than a joint bank account arrangement.
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