Accessing Funds After the Death of a Loved One

Naturally, it’s a very stressful time when someone close to you passes away, and financial or practical concerns are the last thing you need. For example, if you depend on a loved one who has died, you might want access to funds to pay essential bills or take care of other liabilities.

However, in the UK, strict legal requirements govern access to funds after death. Here are a few pointers to help you through the process.

Role of Executors & Administrators

To withdraw money from the deceased’s account, the executor(s) or administrator(s) of your loved one’s estate must follow the proper legal procedures.

1. Legal Documentation

In many cases, the only way to legally access money belonging to an estate is to administer that estate by applying for a Grant of Probate. This process is referred to as probate. This process must be carried out by either the executor(s) if there is a valid Will or an administrator if there isn’t. This process can be complicated, is rarely fast (at least three months), and requires careful attention to detail.

2. Identity Verification

Financial organisations also have stringent identity verification procedures. Executors or administrators usually need to prove their identity and authority to act on behalf of the deceased’s estate, which can involve presenting multiple forms of identification and documentation.

Financial Institutions

1. Different Policies

Different banks have varying policies and requirements for releasing funds from a deceased person’s account. In cases where the estate’s total value is below a certain threshold, it may be possible to access the funds without going through the whole probate process. In practice, this amount can range from £15,000 to £50,000. However, it could take time (months, not weeks) to access funds.

2. Nominated Accounts

If your loved one has an account solely in their name (a nominated account), all direct debit payments and standing orders will stop, and the account will be frozen after being notified of their death.  A record of these suspended payments is usually sent to the executor or administrator.

3. Permitted Expenses

Many organisations will authorise holding back money to pay for expenses, including:

• Organising and paying for a funeral
• Buying a headstone
• Paying any inheritance tax
• Paying probate fees

4. Joint Accounts

If you jointly hold an account with the deceased, you may have easier access to the funds in the account(s). All direct debits and standing orders will continue unless you tell the organisation otherwise. However, the bank will likely request the death certificate to transfer money to you as the other joint owner.

Powers of Attorney

A note about lasting Powers of Attorney (LPAs) are only valid during the lifetime of the person who made the LPAs. So, even though you may have had access to your loved one’s bank and savings accounts during their lifetime, you no longer have that authority after death.

Our Advice

Accessing the funds of someone who has died can be challenging. However, having a clear Will specifying the executor, beneficiaries, and asset distribution helps streamline the process.

Our specialist team has great experience advising clients about making their Wills. If you’re unsure whether you need to apply for a Grant of Probate to access your loved one’s bank accounts, we can help you. For further information, advice, or an instant quotation, please contact us.

Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.

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