Work Savings Club

[crisper]

Hiya, 6 of us save up every year.. like a thrift club..and take the money out at christmas!.. The account that the money goes into, is in my name!..We were talking at work today..if I died..... hope not !!..lol.. but you never know... my other half/family would inherit the money.. but obviouysly..a large proportion of it belongs to work mates.. What I'd like to know is..If I wrote a ''letter''...and said that the money should be split between the named people, and the amounts they have ''invested''..and got everyone in the ''club'' to sign it.. would the bank accept that as proof.. so someone else could take the money out ? Thanks for your help.. Mrs C xx

[Buenchico]

If you were to die owing money to power companies, loan companies, credit card companies etc, the fact that 'their' money was in your bank account would be irrelevant. They'd still be able to claim it from your estate.

Similarly, the fact that other club members' money is in your account wouldn't deprive them of their legal right, upon your death, to get their money back. They simply need proof that you owe them the money. Go to any traditional office stationer's shop and buy some proper savings cards. Ensure that they're filled in every time that someone gives you their money and then everyone will have proof of how much is owed to them.

Alternatively speak your bank manager about opening a separate account. (To the best of my knowledge, all of the major High Street banks offer free banking to clubs). You'd need to draw up a very simple constitution and convene a minuted meeting (in practice taking about 30 seconds out of your coffee break at work!) to get yourself appointed as Treasurer, with someone else as Secretary.

[rockyracoon]

Just to add to Chris' post, I'd get another signatory on the account.

[Barmaid]

If you died, the members would be able to claim a "resulting trust" over the money in your account that they had contributed. Ie, they contributed the money so it results (or reverts) back to them.

Simplest way to deal with it is to do a short agreement stating that you and the 5 colleagues operate this fund and that you hold it on trust for them in the amounts they have paid in and get everyone to sign. Just add the amounts each paid in every week to a schedule to the document.

WOuldn't be down to the bank, their "claim" would be against your executor/administrator.

[crisper]

Buenchico, Rocky and Barmaid.. thanks for taking the time to answer.. I thought this would be fairly straight forward.. and it is... of course.. if the members of the ''club'' upset me.. I'll use all the money for a holiday... you 3 can come too!!! lol... Thanks again for your answers! Mrs C xx

[Barmaid]

I'd like a Med Cruise please, Crisper - but I won't share a cabin with Buenchico! ;). Nice of you to acknowledge our responses.

[JaneGray]

I am wondering if this club is being ran with the correct type of bank account.
I should ask the bank if a club account may be more suitable with more than 1 signatory.
I was a member of a club some years ago and a signatory on the account died very suddenly. I think she was only about 40.
It was just a case of replacing the signatory on the account and it went through in a matter of days.
Another member of the family said there were complications with the estate and it took about 8 months for probate to be obtained.
If the clubs money had been in her sole name it would have taken that time before the money could have been accessed.

Jane