Hi, my 25yo son who has a variety of MH challenges has asked me to become his financial appointee. He’s not able to manage his money and has made several rash/impulsive decisions resulting in him being in an amount of debt.
Of course I’m willing in principle. I do feel a bit clueless though.
Is it better to set up a separate bank account for this to keep his and my affairs totally separate? Or should I talk to his bank about what’s needed?
Are there any gotchas/things to be aware of?
And if his UC/PIP is paid “directly to me” as gov.uk suggests does that then count as income with regard to carers allowance? He does get >4pts on some PIP criteria so won’t be affected by the upcoming changes.
Sorry for the jumble, it’s reflective of my state of mind at the minute!
With many thanks for any advice anyone can offer
It’s very easy. My son was brain damaged at birth, now 46, he lives in his own flat, I am his appointee. First, apply to DWP on the appropriate form.
Then set up a bank account solely for his money. Name it something like Mrs. Mary Bloggs in respect of Little Blog.
Once appointeeship is approved, tell DWP the account number for the benefits to be paid into. Have a debit card for you to use on this account, use it for everything you buy for him, then you can show him.
Presumably he has his own account already? You can pay him some “pocket money” each week.
If he lives with you, transfer some weekly housekeeping into your account.
Get details of ALL his debts. Debt management is not my area, but I have heard of voluntary agreements.
Feel free to ask me anything. This is all from my personal experience. I am not a paid advisor but have financial qualifications and experience. Carers UK have paid advisors, but are very busy!
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Thank you for such a kind reply. The debt is in hand, and thank you for your reassurance on the process. He does have his own account but I’m minded to set up a separate one for this to keep what is his money separate from my money. He does contribute a share of the bills as does his sister (also disabled and living with us, looking after the two of them is basically my life!).
Does his income count as “my” income in any sense once this is set up? I’m thinking of carers allowance mainly (but also any tax implications)?
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As long as you can show that the only money going into the new Appointee account is from his benefits, and outgoings relate to him, there is no problem. During me degree studies we were told that in this sort of situation you would be classed as an “agent”, acting on behalf of someone’s behalf, but not liable for any debts.
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Hi @surameen - I’m no expert but BB has a lot of experience and is one of the best to give you advice.
You might like to check out the Government Debt Advice service. This website can point you to more local help as well as national organisations. Get free debt advice - GOV.UK
With the right advice you may be able to get some debts reduced or the interest frozen to help reduce the outstanding amount quicker. You DO need to get advice and via Government backed organisations this is usually free - be wary of some organisations who may charge fees!
As BB says - any monies you receive for your son are for his benefit and have no bearing on Claims you make regarding CA etc. “Income” there is “EARNED income”.
All the best.