What to Do When a Bank Account is Frozen After a Death | Curtis Parkinson
Frozen Bank Account After Death

What to Do When a Bank Account is Frozen After a Death

26 November, 2024 4 minutes reading time


Losing a loved one is always challenging, and dealing with their affairs afterwards can add to the stress.  Many people encounter a common problem: the deceased’s bank accounts are frozen, even with a financial Lasting Power of Attorney (LPA) in place. This can be challenging when you face immediate costs like the funeral.

Why Accounts are Frozen

Banks typically freeze accounts as soon as they learn of a death. This is standard practice, regardless of an LPA. The LPA ends when the person dies, so the bank account essentially enters a holding pattern until the will’s executor obtains a Grant of Probate.

Locate the Will

To proceed with the deceased’s affairs, you’ll need to locate their Will if they had one. It might be stored with a solicitor, bank, or at home. The Will names the executor and provides instructions for distributing the estate, essential for obtaining a Grant of Probate.

Applying for Probate

Probate is the legal process by which the court authorises the executor of a Will to manage and distribute the deceased’s assets according to their wishes. It is the court’s seal of approval for the Will and the executor’s right to act. After submitting an application, a grant of probate or letters of administration usually takes up to 16 weeks. However, the process can take longer without a will, inheritance disputes, or complex estate.

Do You Need Probate?

Probate isn’t always necessary. It depends on the type and value of the assets. You’ll likely need it for:

  • Property and land owned solely by the deceased.
  • Banks invariably require probate for more significant sums.
  • Investments, including stocks and shares, usually require probate.
  • Some life insurance policies (not written in trust).

When Probate Is Not Needed

  • Small estates under £5,000.
  • Jointly owned assets where ownership passes automatically to the survivor.
  • Assets in trust are handled by trustees outside of probate.

First Things First: The Death Certificate

Before you can even consider probate or accessing funds, you’ll need a death certificate. Here’s how that process works:

  1. In England and Wales, a medical examiner reviews the circumstances of the death to ensure accuracy. This relatively new process aims to improve scrutiny.
  2. Once the medical examiner is satisfied, you can register the death. You must do this within 5 days in England and 8 days in Scotland.
  3. Once the death is registered, you will receive a death certificate. This official document confirms the death and is essential for various legal and administrative tasks.

Tell Us Once: Simplifying Notifications

The UK government offers a helpful service called “Tell Us Once.”  This allows you to notify multiple government departments about a death with a single notification. These include HMRC for tax affairs, DWP for benefits, your local council, the Passport Office, and the DVLA. The registrar usually introduces this service when you register the death, and they may even help you complete the process or provide a unique reference number for online or phone access.

Covering Funeral Costs

With a frozen account, paying for the funeral can be tricky. Here are some options:

  1. If the deceased had a pre-paid funeral plan, it would usually cover most, if not all, expenses.
  2. Family and friends may help with the costs.
  3. Some funeral directors offer payment plans or may agree to wait for payment until after probate is granted.
  4. If you apply, the bank often releases funds to cover funeral expenses.

Example: Mrs. Smith

Imagine Mrs Smith, an elderly care home resident, passes away. She had a valid will, a valid LPA, and £50,000 in savings. However, her bank account is frozen upon her death. Her executor, her daughter Sarah, must pay for the funeral and apply for probate.

What Can Sarah Do?

  1. Obtain the Death Certificate: First, Sarah must register her mother’s death and obtain the certificate.
  2. Use Tell Us Once: This service will help Sarah notify all relevant government agencies.
  3. Contact the Bank: Sarah should inform them of her mother’s death and inquire about releasing funds for the funeral.
  4. Contact the Funeral Director: Sarah should discuss payment options, including possibly delaying payment until after probate is granted.
  5. Instruct a Solicitor: While Sarah can apply for probate herself (there’s helpful guidance on the government) seeking advice from a specialist lawyer can be immensely helpful during a difficult time. A probate lawyer will help her through the process, assist with the probate application, and advise on accessing funds. Legal fees are regulated by the Solicitors Regulation Authority (SRA) and should align with the size and complexity of the estate.

Our Advice

Our specialist team has many years of experience helping bereaved people. Please contact us for advice or information about probate, Intestacy, property matters, or inheritance disputes. We’re here to help.

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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