This article explains the probate and estate administration position in England and Wales. Different rules and procedures apply in Scotland and Northern Ireland. Scotland uses confirmation rather than probate and also has different succession rules, while Northern Ireland operates its own probate system. Specific advice should be taken where the deceased lived or owned assets outside England and Wales. When someone dies, one of the first practical questions families often ask is what happens to their bank accounts. Bank accounts can contain money needed to pay funeral costs, household bills, debts and other estate expenses, but they cannot usually continue to be used in the same way after death. What happens next depends on how the account was owned, how much money is held, whether there is a will and whether probate is required. A joint bank account may pass differently from an account held in the deceased person's sole name. Some banks may release smaller balances without probate, while others will require a Grant of Probate or Letters of Administration before funds can be accessed. For executors, people entitled to apply to administer an intestate estate and family members, it is important to understand the correct process. Using a deceased person's bank account without authority can create legal and practical problems, even where the intention is simply to pay bills or help the family. This guide explains what happens to a bank account when someone dies, who can access the money, when probate may be needed and how bank funds should be dealt with during estate administration.
When a person dies, any bank account held in their sole name will usually form part of their estate.
The money does not automatically pass to family members, even if they are named in the will or are the closest relatives.
Once the bank is notified of the death, the account will normally be frozen or restricted. Ordinary withdrawals, card payments, standing orders and direct debits may be stopped. The bank does this to protect the estate and make sure money is only released to somebody with the appropriate authority.
Where there is a valid will, the executor's legal authority derives from the will itself from the date of death, although the Grant of Probate is normally needed as formal evidence of that authority before banks and other organisations will release substantial assets.
The position is different where there is no will. There is technically no administrator immediately after the death. Instead, one or more people may be entitled to apply for Letters of Administration. Their authority to act as administrators arises when the grant is issued.
This distinction is one reason banks may deal differently with an executor named in a will and somebody who is expecting to become an administrator of an intestate estate.
The bank may request the death certificate, identification, information about the estate and, depending on the account balance and its internal rules, a Grant of Probate or Letters of Administration.
The money in the account will eventually be collected as part of the estate administration process. It may then be used to pay debts, tax, funeral expenses, professional fees and other estate costs before the remaining estate is distributed to beneficiaries.
Joint bank accounts are usually treated differently from sole accounts.
In many cases, the account will pass automatically to the surviving account holder under the principle of survivorship. The surviving account holder can normally continue using the account once the bank has updated its records.
The bank will usually need to see the death certificate and may convert the account into the surviving holder's sole name.
However, a joint account should still be reviewed carefully.
The deceased person's interest in the account may need to be considered when valuing the estate for Inheritance Tax purposes. This can be particularly important where the deceased contributed most or all of the money held in the account.
Joint accounts can also create disputes. Family members may question whether the surviving account holder was intended to own all of the money beneficially or whether some of it should be treated as belonging to the deceased's estate.
The answer can depend on how the account was operated, where the money came from, the relationship between the account holders and what they intended when the account was created or funded.
Where there is uncertainty, the position should be reviewed before assumptions are made about who is entitled to the money.
The bank should usually be notified as soon as reasonably possible after the death.
This might be done by an executor named in the will, a close relative or another person dealing with the initial practical arrangements.
Most banks have a specialist bereavement team or online bereavement notification process. The person reporting the death will normally need to provide details of the deceased, a death certificate and their own identification.
If there are several banks or financial institutions involved, each organisation will usually need to be contacted separately.
The Tell Us Once service can notify a range of government departments after a death, but it does not normally replace the need to contact private banks and financial institutions directly.
When contacting the bank, it is sensible to ask what documents it requires, whether a grant will be needed and whether it can provide a balance at the date of death.
Date-of-death balances are important because they help the personal representatives value the estate for probate and Inheritance Tax purposes.
Money should not normally be withdrawn from a deceased person's sole bank account after death unless the bank has authorised the transaction or the person dealing with the account has the necessary legal authority.
Even if somebody has the deceased person's bank card, PIN or online banking details, they should not continue using them.
Authority given by the account holder during their lifetime normally ends when they die. Continuing to withdraw money, transfer funds or use their bank card after death can create serious problems, even where the money is being used for household or family expenses.
If urgent payments are required, the bank should be contacted directly.
Some banks will agree to make certain payments from a deceased person's account before probate is granted.
Funeral costs and Inheritance Tax are common examples where the bank may be prepared to pay the relevant organisation directly once it has received the required documents.
Once the Grant of Probate or Letters of Administration has been obtained where required, the funds can be collected and used as part of the formal estate administration process.
Funeral costs are one of the most common expenses that arise immediately following a death.
Although a deceased person's sole account may have been frozen, many banks will consider paying a funeral invoice directly from the account.
The bank will normally require a copy of the death certificate and the funeral director's invoice. If it agrees to make the payment, the money will usually be sent directly to the funeral director rather than released to a relative.
This can be helpful where family members do not have sufficient funds available to pay the funeral costs themselves.
However, procedures differ between banks and a bank is not necessarily required to release the money.
If a relative pays reasonable funeral expenses personally, they can usually seek reimbursement from the estate once funds become available, provided the estate has sufficient assets. Receipts and invoices should therefore be retained.
Executors should also remember that funeral costs are only one of the liabilities that may need to be dealt with. Tax, debts, professional costs and other estate expenses must also be considered before beneficiaries are paid.
Once a bank has been notified of the death, direct debits and standing orders from a sole account may be stopped.
This can include payments for utilities, subscriptions, insurance, mortgage payments, care fees and other household expenses.
Stopping payments can prevent unnecessary costs from continuing, but it can also create practical problems.
For example, if the deceased owned a property, buildings insurance, utilities and mortgage arrangements may still need attention while the estate is administered.
Executors or the person dealing with the estate should therefore identify which payments were being made and establish which liabilities still need to be maintained.
Where a property is left empty, insurance should be reviewed quickly because standard home insurance policies often contain different conditions once a property becomes unoccupied.
Payments that genuinely need to continue should be managed through the estate with proper records rather than by simply continuing to operate the deceased person's personal bank account.
A Grant of Probate or Letters of Administration may be needed to access a bank account, but this depends on the bank and the amount of money held.
Each financial institution sets its own requirements for releasing funds without a grant.
Some banks may release smaller balances after receiving the death certificate, identification and a completed bereavement form. Others will require a formal grant where the balance exceeds their internal threshold.
There is no single probate threshold which applies to every bank.
This means one financial institution may agree to release an account without probate while another institution holding a similar amount requires a Grant of Probate or Letters of Administration.
Probate is more likely to be needed where the deceased held substantial funds, investments or other assets requiring formal proof of authority, or where the estate includes property owned in the deceased's sole name.
Where there is a will, the executors apply for a Grant of Probate.
Where there is no valid will, the person with priority under the intestacy rules may be entitled to apply for Letters of Administration. They become the administrator once that grant has been issued.
Banks consider their own internal procedures, the value of the account and the risk involved in releasing the money.
A bank may be prepared to release a relatively small balance without a grant where the person dealing with the estate provides the required documentation and, in some cases, signs an indemnity.
For larger balances, banks are more likely to require a Grant of Probate or Letters of Administration.
The grant provides formal evidence of who is entitled to deal with the estate. This protects the bank from releasing money to the wrong person and helps protect the estate by ensuring funds are placed under the control of the correct personal representatives.
Because each bank has its own requirements, executors and prospective administrators should contact every financial institution separately rather than assuming the same threshold applies everywhere.
Where possible, it can also be useful to obtain written confirmation of the bank's requirements so that the probate application and estate administration can be planned properly.
The documents required vary depending on the bank, the account balance and whether probate is required.
The bank will usually ask for an official death certificate. It may also require proof of identity and address from the person contacting it, details of the deceased's accounts and information about whether a valid will exists.
If probate is required, the bank will normally need evidence of the Grant of Probate or Letters of Administration before releasing the account.
If a grant is not required under its internal rules, the bank may ask the person dealing with the estate to complete a bereavement form and potentially sign an indemnity.
Executors should also ask for the account balance at the date of death and details of interest accrued.
These figures may be needed for the estate valuation, Inheritance Tax reporting, Income Tax reporting and the final estate accounts.
Where the deceased had credit cards, loans, mortgages or other liabilities with the same bank, details of those accounts should also be obtained.
If there is no valid will, the bank account does not automatically pass to whoever contacts the bank first.
The estate must be administered under the rules of intestacy.
Those rules determine who is entitled to inherit and who has priority to apply for Letters of Administration.
A surviving spouse or civil partner may have priority, followed by children and then other relatives depending on the circumstances.
An unmarried partner does not automatically inherit under the intestacy rules in England and Wales simply because they lived with the deceased, even if they had been together for many years.
Before Letters of Administration are granted, someone may be entitled to apply to become the administrator but they are not yet the administrator in the strict legal sense.
Once the grant has been issued, the administrator has the authority needed to collect estate assets, including money held in bank accounts.
Where there is uncertainty about who has priority to apply, legal advice should be taken before an application is made.
A power of attorney ends when the person who granted it dies.
This is an important and common source of confusion.
If somebody was acting under a Lasting Power of Attorney or Enduring Power of Attorney during the deceased's lifetime, they cannot continue operating the deceased person's bank account under that authority after death.
They should not continue using the deceased's debit card, online banking or other banking facilities.
After death, responsibility moves into the estate administration process.
Where there is a will, the executors named in it may take up their role.
Where there is no will, somebody entitled to apply for Letters of Administration can begin the process of obtaining the grant, but their authority as administrator does not arise until the grant has been issued.
An attorney may still help by providing bank statements, financial records or other information to the executors or prospective administrator.
If the same person was both the deceased's attorney and an executor named in the will, their legal capacity changes. Their authority as attorney ends and they deal with the estate in their separate role as executor.
Once bank funds are released, they form part of the wider estate administration process.
The executor or administrator should use estate funds to pay debts, tax and expenses before distributing the remaining money to beneficiaries.
This can include funeral costs, utility bills, care fees, credit cards, loans, mortgage payments, Inheritance Tax, Income Tax, Capital Gains Tax and professional fees.
Estate funds should normally be kept separate from the personal money of the executor or administrator.
Depending on the circumstances, a separate executor's or estate account may be opened so that money received and payments made can be recorded clearly.
This is particularly important because personal representatives may be required to explain how estate assets have been collected, used and distributed.
Executors and administrators should be cautious about distributing estate funds before they are confident that debts, tax and potential claims have been dealt with.
If money is paid to beneficiaries too early and a previously unknown liability later arises, a personal representative can potentially become personally responsible for putting the position right.
There are two important protections commonly considered before a final distribution.
The first is the use of statutory creditor notices under section 27 of the Trustee Act 1925. Personal representatives can advertise for creditors to come forward, including through The Gazette and, where appropriate, a relevant local newspaper. The notice must allow the required period for claims, which is normally at least two months.
Provided the statutory requirements are followed, this can give personal representatives protection against personal liability for certain unknown creditor claims when they later distribute the estate. It does not extinguish the underlying debt, and known liabilities still need to be dealt with.
The second consideration is the six-month period following the grant of representation.
Certain people can make claims for reasonable financial provision from an estate under the Inheritance (Provision for Family and Dependants) Act 1975. The usual time limit for bringing such an application is six months from the date on which the grant of representation is first taken out.
For that reason, personal representatives will often consider whether it is appropriate to wait until that period has expired before making the final distribution.
Waiting six months does not guarantee that no claim could ever be brought, as the court can allow some late applications. However, the legislation provides important protection for personal representatives who have distributed the estate after the relevant period in circumstances where a late claim is subsequently allowed.
The right approach depends on the estate, potential beneficiaries and any known disputes or claims.
Some bank and savings accounts may continue earning interest after death until they are closed or the funds are transferred.
The bank should be asked to provide details of interest up to the date of death and any interest arising afterwards.
Interest up to the date of death belongs to the deceased's final tax position and estate valuation as appropriate. Interest arising during the administration period is generally estate income.
There is, however, a small-estate income exemption which is useful in practice.
For tax years from 2024/25 onwards, where the estate's total income for a tax year is £500 or less, the personal representatives do not normally need to report or pay Income Tax on that income as it arises.
Importantly, this £500 threshold applies to the estate's total relevant income for the tax year, rather than being a separate £500 allowance specifically for bank interest.
If the estate's income exceeds £500 for the tax year, the £500 is not deducted as an allowance. The full amount of relevant income becomes taxable and may need to be reported.
Executors should therefore keep records of all interest and other estate income even where the amounts initially appear small.
Beneficiaries do not normally have the right to access the deceased person's bank account directly.
Even if somebody is named as a beneficiary in the will, the assets must first be collected and administered by the personal representatives.
Debts, tax and administration expenses have to be considered before the beneficiaries receive their inheritance.
A beneficiary should not use the deceased person's bank card, online banking credentials or cheque book.
They should also avoid pressuring the executor or administrator to release money before the estate position is sufficiently clear.
Once the administration has progressed and the personal representatives are satisfied that a distribution can properly be made, beneficiaries can receive their entitlement from the estate.
The personal representatives should retain appropriate estate accounts showing how money was collected, spent and distributed.
Using a deceased person's sole bank account after death without authority can create serious problems.
This can include withdrawing cash, using a debit card, making online transfers, paying personal bills or continuing to operate the account as though the account holder were still alive.
Even where somebody believes they are acting helpfully, they may be using estate money without legal authority.
Executors may need to investigate transactions made after death. If money has been taken incorrectly, it may need to be repaid to the estate.
Where there are concerns about financial abuse, misuse of funds or unauthorised withdrawals, legal advice should be taken. Serious cases may also need to be raised with the bank or other relevant authorities.
Prompt notification of the death to the bank can help prevent unauthorised activity.
If the deceased person's bank account is overdrawn, the overdraft will generally be a debt of their estate.
The same applies to personal credit cards, loans and other debts.
These liabilities should be identified, checked and paid from estate assets where sufficient funds are available.
Family members do not normally become personally responsible for a deceased person's individual debts merely because they are related to them.
The position can be different where somebody was jointly liable for a debt, acted as a guarantor or has some other contractual responsibility.
Executors should not distribute the estate until liabilities have been properly considered.
Particular care is required if an estate is insolvent, meaning its debts exceed its assets. Insolvent estates are subject to rules governing the order in which liabilities must be paid, and personal representatives should seek advice before making payments or distributions.
Executors can reduce the risk of problems by acting promptly, keeping detailed records and avoiding informal use of estate money.
Banks should be notified and asked to provide date-of-death balances, details of accrued interest and information about their probate requirements.
The deceased person's account should not simply be operated in the same way as it was before death. Payments should only be made where there is proper authority and a clear record of the transaction.
Once money is collected, it should be kept separate from the personal representative's own finances.
Executors should also identify debts and tax liabilities before distributing the estate and consider whether statutory creditor notices or the six-month claim period make it sensible to delay final distribution.
Communication with beneficiaries is also important. Personal representatives do not need to report every individual bank interaction, but explaining probate requirements, expected delays and why money cannot immediately be distributed can reduce misunderstanding and unnecessary disputes.
When someone dies, bank accounts held in their sole name will usually form part of their estate.
Once the bank has been notified, the account is normally frozen or restricted until the correct person can demonstrate the authority required by that bank to deal with it.
Joint accounts may pass automatically to the surviving account holder, although they should still be reviewed for estate valuation and Inheritance Tax purposes.
Sole accounts may require a Grant of Probate or Letters of Administration before substantial funds can be released, depending on the bank's requirements.
The distinction between executors and administrators is important. An executor's authority stems from the will, although probate provides the formal evidence usually required by banks. Where somebody dies without a will, the person entitled to apply does not become the administrator until Letters of Administration have been granted.
Personal representatives must also take care before paying beneficiaries. Debts, tax, potential creditor claims and claims against the estate should be considered first, and statutory notices and the six-month period following the grant can provide important protections.
Clear records should be maintained throughout the process, including records of bank interest and other estate income.
At Premier Solicitors, our probate and estate administration team provides clear, practical support to executors, prospective administrators and families dealing with bank accounts after death.
We can advise on whether probate is required, help contact banks and financial institutions, prepare and submit probate applications, deal with Inheritance Tax and estate income issues and manage the full estate administration process where required.
We can also advise on protecting personal representatives before distributing an estate, including potential creditor claims, statutory notices and the appropriate timing of beneficiary payments.
Whether the estate is straightforward or more complex, our team can help ensure that bank accounts, debts, tax and beneficiary distributions are dealt with correctly.
For tailored advice on probate, bank accounts and estate administration, contact Premier Solicitors today.
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