When a loved one passes away, managing what happens to their money might not be at the top of your list but it’s an important process that you will eventually need to go through. Although you will be dealing with emotional turmoil and upset, you may find yourself in the position where you will need access to your deceased partner’s bank account. If you are awaiting a grant of probate, the bank may allow you to withdraw funds from the account to pay for funeral or probate-related expenses.
As executor, it is your responsibility to extract any funds and distribute them to the beneficiaries in accordance with the terms of the will. In this article, probate for bank account, we take a look at the process and steps involved.
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What is probate?
Probate is the full legal procedure for settling a deceased person’s estate.
If the deceased possessed property jointly with a spouse or civil partner, probate may not be necessary.
What steps to take when someone dies
In addition to dealing with the funeral arrangements, there are a number of steps that need to be taken before you can deal with the deceased’s financial affairs:
- You should register the death within 5 days. By doing this you will obtain a death certificate. This is an important document that you must keep safely as you will need the original in order to gain access to the deceased’s bank accounts.
- If the deceased left a will, an executor will have been named. This is the person responsible for handling the estate of the deceased. Once the executor has the original copies of the Will and the death certificate, they can apply for probate. If someone dies without a will, the application process is the same, but you’ll get ‘letters of administration’ rather than a ‘grant of probate’.
- You will need to estimate any inheritance tax liability and notify HMRC of the same. We can advise on this.
- Once you have the Will, death certificate, and grant of probate, you are then in a position to notify the banks, utility and insurance companies.
Taking funds from a deceased person’s bank account.
Keep in mind that most banks will not allow you to take money from an open account of a deceased individual until you have been granted probate unless you are the other account holder (or have a letter of administration). Depending on the bank, the maximum amount of money that can be released without a grant is from £15,000 to £50,000. If a person dies intestate (without leaving a will), the rules of intestacy apply.
What happens to a joint account when someone dies?
If your partner was a joint account holder and dies, the next actions will require careful consideration.
The surviving account holder may assume that the funds are transferred to them, or they may request that the account be kept open in their name. Additionally, the majority of joint accounts have rights of survivorship. This means that the surviving account holder can assume full ownership of the account by providing the bank with the deceased account person’s Death Certificate. Typically, joint accounts do not contribute to the decedent’s probate estate, which indicates that the provisions of the account supersede the Will.
Current and Savings Accounts of the deceased
Bank accounts remain open until all funds are retrieved and the account is closed properly. However direct debits and standing orders will be cancelled. It is prohibited to withdraw money from an open account of a deceased person before notifying the bank of the death and obtaining probate, unless you are the other person identified on the account. Even if you need to use some of the funds to pay for the funeral, this is the case. If you are the executor of the Will, it is your responsibility to remove and distribute any funds to the beneficiaries as specified in the Will. We will be able to assist you throughout the procedure.
If your partner died without a Will, intestacy regulations would apply.
There is a potential that you do not know the specifics of all of your partner’s bank accounts, or that some information has been lost. In such a circumstance, there are online resources that might assist you in locating lost accounts.
What happens to any debts?
Debts such as mortgages, loans, and credit cards are not passed on to heirs, but must be paid off before the remainder of the estate is distributed according to the will’s provisions. If there are insufficient assets to satisfy the debts, the debts (or a portion of the debts) will be wiped off.
If there remains an estate after all debts have been paid, you must publish a notification in The Gazette, the official public record of deceased estates. If you fail to do so and a creditor later asserts a claim against the estate, you may be personally liable for the unknown amount.
You can distribute the remaining estate to the beneficiaries two months and one day after the notice has been issued, assuming no more creditors have come forward.
Upon the death of the other party, the survivor becomes solely liable for any debts incurred under a joint name.
How we can help
We have a proven track-record of advising upon all aspects of private client work. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
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How to Contact Our Private Client Solicitors
It is important for you to be well informed about the issues and possible implications of probate. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to our Wills and Probate solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
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