Dealing with the death of a loved one is an incredibly challenging time. On top of the emotional toll, there are many administrative tasks to be handled. One crucial task is notifying the deceased person’s bank and managing their accounts. Handling this promptly and correctly ensures accounts are closed or transferred quickly, preventing any unnecessary or unauthorised transactions. This guide provides clear instructions to help you through this process.
What Happens to Bank Accounts After Someone’s Death?
Bank accounts of the recently deceased are typically frozen until the estate is settled. Banks will require certain documents before releasing any funds. Account freezes ensure no unauthorised transactions take place while the estate is being settled.
First Steps After a Loved One’ Death
The initial steps you take after a loved one passes away are vital in ensuring that their financial affairs are handled correctly:
- Identify the Executor If there is a will, it will name an executor who is responsible for managing the deceased’s estate.
- Apply to Become Administrator: If there isn’t a will, this situation is called ‘intestate’. Generally, the person with the greatest entitlement in the estate will need to apply for a court will need to appoint them as administrator.
- Inform Relevant Parties: Notify other important entities such as banks, insurance companies, utility & telco providers, government entities and any superannuation funds.
- Obtain the Death Certificate: This is the primary document you will need to close or transfer accounts.
How to Notify the Bank of Someone’s Death
To notify the bank of someone’s death, follow these steps:
- Contact Bereavement Services: Most banks have a dedicated bereavement services team. Reach out to them directly, we have provided a list of bereavement web pages for major banks below.
- Provide Necessary Documents: You will need to provide a death certificate, the will (if available), and proof of your identity.
- Close or Transfer Accounts: Follow the bank’s instructions for closing or transferring accounts. This often involves filling out specific forms and submitting additional documentation.
What Happens to the Money in the Bank Account After Death?
An all cases, any debts and liabilities must be settled before the remaining funds can be distributed to beneficiaries. The process of account closure and fund distribution will depend on whether there is a will:
- With a Will: The executor will manage the distribution of funds according to the terms of the will.
- Without a Will: Intestacy laws will dictate how the funds are distributed.
Common Issues
Some other issues can arise during this process:
- Joint Accounts: Joint accounts may not be frozen and can usually be accessed by the surviving account holder.
- Direct Debits and Recurring Payments: These need to be identified and cancelled to prevent further deductions. BillWill can help you do this.
- Unknown Debts: Ensure all debts are accounted for and settled.
- Lost or Missing Documents: If any required documents are missing, you might need to obtain replacements, which can delay the process.
Where to Find Additional Support
There are many resources available to provide additional support during this time:
- Legal Advice: Consult with a lawyer specialising in estate law for comprehensive assistance.
- Financial Counselling: Seek financial advice to help manage the deceased’s assets effectively.
- Online Tools and Services: Platforms like BillWill can simplify the process of managing and closing accounts.
Conclusion
Handling the financial affairs of a deceased loved one is a sensitive and complex task. By following the steps outlined in this guide, you can ensure you are ready to deal with someone’s bank accounts after their death. Remember to seek professional advice if you encounter any difficulties.
For personalised assistance, please send an email to enquiries@billwill.com.au and we can put you in touch with one of our estate planning partners.
Here are the links to the websites of some of the largest banks in Australia with information about their deceased estate and notification services:
