Most people have at least one bank account, and many have several. When someone dies, it can be an overwhelming time, and during a period of grief, it is easy to feel burdened by the many practical tasks that need to be arranged. This article looks at how to handle a deceased loved one’s bank affairs.
Our Probate Help pages provide further guidance to help families navigate the probate process.
First Practical Steps
Locate all financial documentation, including digital statements and paper forms. Make a note of every account and its number. Then apply for probate, or Letters of Administration if there is no will. Further guidance is available on the GOV.UK website.
You Should Also
Notify banks, lenders, insurers, and utility providers about the death- Include credit cards, loans, gas, electricity, water, phone contracts and insurance policies
- Take Inheritance Tax into account and determine if the estate will be required to pay it
- Recognise whatever debts the deceased may have had; before the estate is dispersed, all debts must be paid
Freezing Accounts And Payments
The next step is to contact the banks and request that they freeze the accounts once it is clear which banks the deceased had accounts with. During probate, funds from these accounts may be used to cover Inheritance Tax or burial expenses. To authorise these payments, banks will usually require the relevant invoices and supporting documentation.
Money should not be withdrawn from a deceased person’s bank account without the bank’s permission or proper authority. This is true even if the person withdrawing has a power of attorney, as that power expires upon the person’s death.
A deceased person’s bank account will stay open and functioning until the bank is notified. That can result in unnecessary payments and delays in the probate process. Bank accounts must be handled as a top priority.
Contact Letter of Administration for professional will and probate advice on 020 3985 9555.