Almost everyone has a bank account, and many people have more than one. When someone passes away, it is often a shock, and it is easy to feel overloaded with things to organise at a time of loss and grief. This blog looks at how to deal with the bank accounts of a deceased loved one.
What to do First
Before dealing with the deceased’s bank accounts, there are some things you must do. These are:
- Find all paperwork to do with finances – this could be physical forms or digital statements. Note all accounts and account numbers.
- Register the death – you can look on the Gov website for more information
- Apply for probate – you can look on the Gov website for more information
- Inform banks, finance, insurance and utility companies – this includes credit cards, loans, car, house and life insurance, water, gas, TV, electric and phone bills.
- Consider inheritance tax – establish if the estate will be liable to pay inheritance tax.
- Be aware of any debts the deceased may have had – all debts must be cleared before the inheritance is distributed.
Contacting the Banks
Once it has been established how many bank accounts the deceased had and with which banks, the next step would be to contact them, and they will freeze the accounts. Funds from these accounts can be used to pay a funeral bill or inheritance tax during probate. This will entail providing the bills and all relevant information to the bank so they can authorise the payment.
Joint Bank Accounts
With shared bank accounts, the surviving partner will usually keep the funds in the joint account. They will need to provide the bank with the death certificate in order for them to change the account.
Important Things to Know
It is important to note that withdrawing money from a deceased person’s account is illegal. This is the case even if the person making the withdrawal has power of attorney, as that ends the moment the person dies.
Another thing to bare in mind is that any bank account of a deceased person will remain open and active until the bank is informed. This could mean payments coming out unnecessarily and could even cause probate delays and issues. It is essential that bank accounts are dealt with as a matter of priority.
If you want help with estate planning, you should contact a professional, such as Intestacy Rules.