When someone dies, it is understandable that their loved ones will want to deal with their finances and assets swiftly. Expenses for funeral costs and managing the estate soon build up, so it is common to wonder if the deceased’s bank account will be frozen during the probate process. While the answer is usually yes for single bank accounts, it is not that straightforward for joint bank accounts. Read on to find out more.
The Right of Survivorship
In the UK, a legal framework known as Right of Survivorship (or Joint Tenancy) governs the majority of joint bank accounts. This rule ensures that the funds in a joint account are immediately transferred to the remaining account holder upon the death of the joint account holder. The money does not belong to the deceased person’s estate, which is governed by the will and the laws of intestacy, because it lawfully goes to the survivor. This means that the surviving account holder still has complete access to the money and that the account is not frozen.
The Next Steps for the Survivor
- Inform the bank or building society of the death as soon as possible.
- Provide the bank or building society with an official death certificate.
- The bank will then update its records, remove the deceased person’s name, and place the account solely in the survivor’s name.
Although there may be a brief period of restricted access while the bank processes the death certificate, it is not a freeze in the way a sole account is locked down until probate is complete.
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Call 020 8150 2010For IHT purposes, HM Revenue & Customs often looks at who contributed the funds to the account. For married couples or civil partners, IHT is rarely an issue due to the spouse exemption.
In Conclusion
Most UK bank accounts will not be frozen when the owner or owners pass away for jointly owned bank accounts. The right of Survivorship ensures that the surviving account holder retains access to and ownership of the funds. However, you must inform the banks as soon as possible and ensure that the account balance is considered part of the estate, if applicable, for inheritance tax reasons as well as for asset distribution.
Contact IWC Probate Services on 020 8150 2010 for friendly and professional probate advice.
If you would like to speak to a probate expert, call us free on 020 8150 2010
