During the administration of a deceased estate, the bank accounts of the deceased are frozen to establish the solvency of the deceased’s estate. This is a lengthy process even if a valid will is left behind, but can become unbearably long (more than two years in some cases) when intestate succession comes into play.
The upside and downside
While this is a vital aspect of the process, especially for creditors and those with financial interests connected to the deceased’s business affairs, it comes at an unwelcome time for the family left behind, especially if they relied on the deceased for their livelihood.
As such, the freezing of a deceased’s bank accounts often forces loved ones to address critical real-world implications while they are still working through the grief of their loss.
There is a silver lining around this frozen cloud, however. No one else can access the finds of the deceased either. During this process, all transactions from the deceased’s accounts (from debit orders to the deduction of banking fees) will cease, ensuring that the deceased’s funds are not depleted while the family waits to access the estate. This ensures that the funds go where they should and are not deducted for services the deceased (and the family) will no longer be able to benefit from.
Notifying the bank
Upon the passing of an individual, the deceased estate must be reported to the bank, and where multiple accounts exist (either with the same bank or with different banks) the bank’s dedicated deceased estate department must be contacted directly. Fortunately, this is usually done by the executor of the estate through a letter that informs the bank of the passing of their client. This is sent along with a letter of executorship and a copy of the death certificate.
Along with these documents, each bank has its own set of requirements and additional documents that may be needed to freeze the necessary accounts. It is thus vital for the executor to contact the bank directly to find out what the precise requirements are.
Further responsibilities
Due to the freezing of accounts, it is important to contact all service providers the deceased was contracted with to cease payments and services. To ensure that the executor and loved ones know who to contact, testators are advised to include a list of all the services they subscribe to with their will.
Utilities, such as water and electricity payments, must still be covered by the loved ones during the administration process to avoid later difficulty if the accounts fall in arrears.
Following the passing of a loved one, it is important to get a legal representative who can guide you safely through the process and help you take care of the administration of the deceased estate while you find closure. To get just that, get in touch with CMM Attorneys.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)