If you’re trying to close down a deceased person’s bank account, bear in mind that banks tend to be quite sensitive to these situations, so try not to worry about approaching them and asking them to close an account after a death.
Here are the steps to take and documents you’ll need. If you need more support, it’s worth getting a friend or family member to help you handle things. Even the simplest tasks can be challenging while grieving.
Who to notify when someone dies
Once you’ve registered the death and taken care of any preliminary paperwork which can’t wait, the next thing you need to sort are utilities and services, such as mobile providers. To settle and close these accounts, you’ll need to talk to each of the separate service providers.
The deceased person is likely to have ongoing standing orders and direct debits, so it’s best to notify these organisations of the death as soon as possible to avoid receiving letters demanding outstanding payments.
You should also let the deceased person’s bank know. This means that the bank can stop any communications, as well as freezing the account – and stopping any standing orders or direct debits.
When you’ve notified the bank, they can let you know what the next steps will be and which other documentation they might need. Some of this documentation often relates to whether or not the deceased made a will.
The bank is likely to ask for two forms of your identification (usually a passport or driver’s licence, or a proof of address with a utility bill) and a copy of the will. If there’s no will, the bank could ask for evidence of your relationship to the deceased.
You’ll also need the death certificate. When you’ve registered the death, you will be issued with a death certificate. This will act as formal notification for the bank to begin closing the account.
How to legally access the money in a deceased person’s bank accounts
The deceased’s money may form part of their estate, and can be used to cover any outstanding debts and taxes. In order to start this process, the bank may require a Grant of Representation before the funds are released.
If you are given a Grant of Representation, this confirms that you are legally allowed to take care of the deceased’s estate and financial affairs. ‘Grant of Representation’ tends to be a catch-all term for more specific documents, including Grant of Probate.
Some banks may release the money immediately – each bank has their own threshold, which can be between £15,000 and £50,000. However, most will want to see a Grant of Probate first, even if there is very little money in the account. This document verifies who is legally permitted to deal with the money in the bank account.
Even if you’re waiting for the Grant of Probate to access the money in the account, many banks may let you use the money in the deceased person’s account to pay for expenses relating to the death – these can include:
How do I get a Grant of Probate?
To get this document, the executor of the will needs to apply to the Probate Registry. This can be a long process; steps include:
- Filling out forms correctly
- Settling any outstanding tax
- Going to a Probate Registry office for an interview
- Swearing an oath to confirm your identity
You can also ask a solicitor to take these steps on your behalf.
When you’ve successfully applied and you’ve received the Grant of Probate, take it to the bank. The bank may then be able to start the process of releasing the funds.
FAQs
When an account holder dies, inform the bank of the deceased by bringing a copy of the death certificate, Social Security number and any other documents provided by the court, such as letters testamentary (court documents giving someone legal power to act on behalf of a deceased person's estate).
How long after a death do you have to close a bank account? ›
Banks generally cannot close a deceased account until after the person's estate has gone through probate or has otherwise settled. Joint accounts that are held together with a surviving owner are not considered deceased accounts. Ownership of these accounts reverts to the surviving owner.
Can I withdraw money from a deceased person's bank account? ›
If you're the joint owner of the deceased person's bank account, you should be able to withdraw money right away. Otherwise, you typically must supply documents showing that you legally have access to the account. Documents a bank might request include: Government-issued ID, such as your driver's license or passport.
When should a deceased person's bank account be closed? ›
When you've registered the death, you will be issued with a death certificate. This will act as formal notification for the bank to begin closing the account.
What happens if we don't close our bank account after death? ›
After someone dies, a sole-owned bank account may go to a named beneficiary or be handled by the executor of the estate. Joint accounts typically have automatic rights of survivorship, but it's still important to check with your bank to ensure smooth access to funds.
Do banks get notified when someone dies? ›
Family members or next of kin generally notify the bank when a client passes. It can also be someone who was appointed by a court to handle the deceased's financial affairs. There are also times when the bank learns of a client's passing through probate.
What debts are not forgiven at death? ›
Additional examples of unsecured debt include medical debt and most types of credit card debt. If you die with unsecured debt, repayment becomes the responsibility of your estate. Your legal estate refers to all the assets, property and money left behind by you or another deceased person when they die.
Why shouldn't you always tell your bank when someone dies? ›
According to Bankrate, one issue is that funeral homes routinely inform the Social Security Administration that your loved one passed away. This is to ensure that Social Security checks stop being issued. Once the bank is notified, accounts will be frozen.
What should you stop when someone dies? ›
What to Do Within A Few Weeks of Death
- The Social Security Administration. If the deceased was receiving Social Security benefits, you need to stop the checks.
- Life insurance companies. You will need a death certificate and policy numbers to make claims on any policies.
- Credit agencies. ...
- Banks and financial institutions.
This is not a bad idea, but most banks will still immediately freeze the account. This is because they will usually require a death certificate and an affidavit of survivorship by each of the surviving heirs.
Respected Sir/Madam, I am writing to you with a heavy heart to inform you of the demise of my husband, Mr. Rajeev Singh, who had a savings account in your esteemed bank. It is a difficult time for our family, and I need to settle his financial affairs.
Can you use a deceased person's bank account to pay their bills? ›
A deceased person's bank account is inaccessible unless you're a joint owner, a beneficiary of the account or the estate executor. Because joint ownership and beneficiaries can make a difference in how your bank account funds are distributed, planning is key.
What do you need to close a deceased bank account? ›
If there's a will without a named executor, the court will issue a Letter of Testamentary; if there's no will, the court will issue a Letter of Administration. Present either of these letters to the bank along with the death certificate to close the account.
How to notify banks of death? ›
Using the Death Notification Service (DNS)
- Their full name.
- Their date of birth.
- The date of their death.
- Their last address.
- The Death Certificate number (also called a 'System Number' which can be found at the bottom left hand side of the death certificate)
Each bank has its own policy but most will release funds held in the deceased's account within two weeks of being provided with the documentation they require. Many will release a sum of money prior to the grant to deal with essential expenses such as funeral costs.
How long do you have to keep bank records after a death? ›
KEEP 3 TO 7 YEARS
Knowing that, a good rule of thumb is to save any document that verifies information on your tax return—including Forms W-2 and 1099, bank and brokerage statements, tuition payments and charitable donation receipts—for three to seven years.
Can beneficiaries demand to see deceased bank statements? ›
If a beneficiary requests access to financial institution statements and the executor refuses to provide them, the beneficiary can take legal action. They can follow the court for an order compelling the executor to reveal the requested information.
Can an executor use a deceased bank account? ›
An executor can transfer money from a decedent's bank account to an estate account in the name of the executor, but they cannot withdraw cash from the account or transfer it into their own bank account.
What happens if you use a deceased person's debit card? ›
In conclusion, it's a crime to use a dead relative's payment cards, even if they're no longer able to use them. Anyone convicted of using a card to make fraudulent purchases will face years of imprisonment for deceit, not to mention an identity theft offense will appear on their criminal record.
