Going to jail or prison can significantly disrupt your financial stability. If you’re facing incarceration, understanding what happens to your money and how to manage your finances is crucial. Even though you won’t have direct access to your funds while you’re serving time, planning ahead can help ensure your financial obligations are met and your assets are protected. In this blog, we’ll explore what happens to your money when you go to prison, including how to handle your bills and access funds while incarcerated.
Where Does My Money Go?
When you are incarcerated, the handling of your money depends on several factors:
- Remains in Account: Generally, if you have money in your bank account, it will remain there while you are in prison. Your funds will stay in your account unless specific actions are taken to freeze or seize them.
- Frozen by the Government: For certain crimes, such as financial offenses or drug-related charges, the government may freeze your assets. This ensures that any financial benefits from illegal activities are not accessible.
- Frozen by the Bank: Banks might freeze accounts that are inactive for extended periods. If your account is inactive while you are in prison, you may need to contact your bank to regain access.
How Do I Manage My Finances From Prison?
When you’re in prison, you’ll need to arrange for someone else to manage your finances. One approach is to temporarily assign your assets to a trusted individual, such as a family member or close friend. This person can take care of your bills and other financial obligations while you’re incarcerated. It’s important to formalize this arrangement with a legal agreement to protect your assets and ensure they are returned to you once you are released.
Alternatively, you can grant legal authority to someone through a power of attorney. This allows them to manage your financial matters on your behalf, with the option to set specific limits on their authority. This method provides a controlled way to handle your finances while ensuring that you retain some oversight.
For those with substantial assets, placing your funds into a trust might be a viable option. By appointing a financial professional as the trustee, you can ensure that your assets are managed in your best interest. Trustees have a legal obligation to act in accordance with your wishes, providing a reliable way to handle your finances from behind bars.
What About My House?
If you’re renting, you should consider ending your lease or subletting your place. This is particularly crucial if you anticipate a long-term prison sentence. While ending a lease early might incur a penalty, it could be more economical than continuing to pay rent while you are not using the property. Subletting your apartment could also be an option, provided it’s allowed under your lease agreement and you can find a reliable tenant.
For homeowners, the situation can be more complex. If you cannot continue making mortgage payments while incarcerated, you might need to explore options such as leasing your home to cover the mortgage or negotiating with your mortgage lender for reduced payments. Many lenders offer hardship programs that can adjust your payment terms during periods of financial difficulty, so it’s worth reaching out to discuss your options.
Do I Have Any Access to Money While in Jail?
In prison, you will generally not have access to your regular bank accounts. However, you may be able to set up a prison trust account, which allows you to make purchases from approved catalogues and pay for commissary items. This account is managed by the state and is designed to facilitate your financial needs while you are incarcerated. A trusted person outside the prison can deposit money into this account on your behalf. Each prison has its own rules regarding these accounts, so it’s important to check with your specific facility for details.
Additionally, if you have funds in a trust or with a financial professional, these can be used to manage certain expenses, such as paying bills or supporting your family. The setup for these accounts should be arranged before incarceration, as access to these funds while in prison is typically restricted to authorized transactions.
Frequently Asked Questions:
How much does it cost to keep a prisoner in jail in Canada?
The cost to keep a prisoner in jail in Canada averages between $100,000 to $150,000 per year, covering housing, food, healthcare, and security.
How much do you get paid in jail in Canada?
Inmates in Canadian jails earn between $1 to $6 per day for work performed, which can be used for commissary purchases and personal needs.
Can you lose your pension if you go to jail in Canada?
You generally do not lose your pension simply due to incarceration. However, if your crime involves financial misconduct, it might impact your pension depending on the plan's terms.
Get Help Today!
Facing incarceration brings numerous challenges, including managing your finances. It’s crucial to plan ahead to ensure your financial obligations are handled while you’re in jail. This includes setting up a prison trust account, making arrangements for your assets, and ensuring that your bills and responsibilities are covered.
If you’re unsure about how to manage your finances during this difficult time, consider seeking advice from a legal professional. They can guide you through the process of planning for your incarceration and help you make informed decisions to protect your financial well-being.
For personalized assistance and to explore your options, reach out to a trusted legal advisor today. They can help you understand what happens to your money when you go to prison and ensure that you have a plan in place to manage your finances effectively while serving your sentence.a