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Written by Adam McIlroy.
14 minute read
When someone dies, their bank freezes their accounts as soon as it’s told about the death. This stops payments going out and protects the money from fraud. To close an account, you’ll usually need the death certificate, proof of your identity and, for larger balances, a grant of probate or letters of administration. The bank then pays off any debts on the account, transfers what’s left to the estate and closes it.
We know this is probably the last thing you feel like dealing with right now. As a family-run direct cremation provider, we help families through this admin every day. This guide explains what happens to bank accounts after a death and how to close them step by step. It also covers joint accounts, a parent’s account and accounts where there’s no will.
Key takeaways:
Knowing what to do when someone dies can feel overwhelming, particularly when there are financial matters to sort out. One of the practical steps you may need to take is letting their bank know about the death.
Once the bank has been told, it will usually freeze accounts held solely in the person’s name while it confirms who has the legal right to deal with the money. Standing orders and direct debits from these accounts will usually stop. In some circumstances, the bank may release money directly to help pay for funeral costs.
Closing the account matters for a few reasons:
There’s no legal time limit, but the account should be closed as part of sorting out the estate. Once probate or letters of administration have been granted, the executor or administrator should collect the money and close the account. Depending on how complicated the estate is, this can take anywhere from a few weeks to several months. Some accounts can build up interest or charges while they stay open, so it’s worth keeping an eye on them.
Only someone with legal authority can close a deceased person’s bank account. That’s usually:
Other family members can’t close the account themselves unless they hold one of these roles. If you’re not sure where you stand, the bank’s bereavement team can tell you what it needs from you.
Every bank has its own process, but most follow these steps.
Each bank’s requirements are slightly different, so check with it before you send anything.
Many banks have an online form for this, but if yours asks you to write in, you can adapt this letter:
Dear Sir or Madam,
Re: [Full name of the person who has died], account number [number], sort code [sort code]
I’m writing to let you know that [full name] died on [date of death]. I am the [executor / administrator / next of kin] of their estate.
Please freeze this account and let me know what documents you need to close it. I have enclosed a certified copy of the death certificate and proof of my identity. [I’ve also enclosed the grant of probate / letters of administration.]
Please send any remaining balance and the final statement to me at the address above.
Yours faithfully, [Your name] [Your address and phone number]
Send copies, never originals, unless the bank specifically asks for originals. Keep a note of when you sent everything.
Not always. Each bank sets its own limit, often somewhere between £5,000 and £50,000, below which it won’t ask for probate. For a balance under the limit, the bank may only need the death certificate, proof of your identity and your relationship to the person who’s died.
For larger balances, the executor will need a grant of probate. If you’re the executor, our guides on how to apply for probate with a will and doing probate yourself explain the process.
When someone dies without a will, known as dying intestate, there’s no executor and you can’t apply for probate. Instead, the closest relative applies for letters of administration. These give the administrator the same powers as an executor, including closing bank accounts. Banks accept either document. Both are types of ‘grant of representation’.
In England and Wales, the intestacy rules set out who can apply and who inherits, in this order:
In some cases a spouse or civil partner and the children both inherit. Small balances may still be released without letters of administration, so check with the bank first.
Money in a joint account usually passes straight to the surviving account holder. This is known as the right of survivorship. You still need to tell the bank, though. Some banks will convert the account into a sole account in your name. Others will ask you to close it and move the money to a new account.
If the account is closed, you’ll need to move any standing orders, direct debits and regular payments into it. Joint accounts are often used for household bills, so make a list of every company that takes payments from it and update each one.
Dealing with your parent’s admin while you’re grieving can feel like a lot. You can close their account if you’re the executor of their estate or you’ve been granted letters of administration. The steps are the same as above.
Keep a careful record of everything you find, including the balance in each account and any savings, investments or bonds held with the bank. You’ll need accurate figures to value the estate, including for inheritance tax. And take it at your own pace where you can. There’s more support in our guide on how to cope with the death of a parent.
Yes. You don’t need to wait for probate. Most UK banks will release money from the account of the person who’s died to pay for the funeral if you send them the death certificate and the funeral director’s invoice. The bank pays the funeral director directly, rather than paying the family.
If you’ve already paid for the funeral yourself, you can usually claim the money back from the estate once it’s been sorted out. Our guides on how to pay for a funeral and whether the next of kin has to pay for the funeral explain the options.
Bank accounts are only part of the picture. You’ll also need to tell:
For wider guidance on dealing with the finances of someone who’s died, Citizens Advice has a helpful bereavement guide.
Missing documents. If you or the bank loses the death certificate, you can order more certified copies from the register office for a small fee. If you can’t find account details, check the person’s computer, emails, post and filing at home. Their solicitor may also hold copies of important papers, especially if they helped write the will.
Delays or disputes with the bank. Put your requests in writing and keep copies of everything you send. This keeps things clear and gives you a record if you need to complain. If the bank is slow or gets something wrong, you can make a formal complaint. If that doesn’t resolve it, you can take it to the Financial Ombudsman Service for free.
Several accounts with different banks. You’ll need to tell each bank separately, unless you use the Death Notification Service. A simple checklist of the accounts, the documents you’ve sent, who you’ve contacted and what’s still outstanding will help you keep track. Our funeral checklist may also help.
We hope you have found this article useful, and that it has answered the question “What happens to bank accounts when you die?”. We know that the admin which relates to funeral arranging can be daunting, which is why we offer you our support. Our wonderful, compassionate Aura Angel team can act as your dedicated, personal funeral arrangers, giving you a cremation forms guide, someone well versed in funeral arranging, and able to offer you a caring ear if you’d simply like to talk about what you may be feeling. You can call us whenever you’re ready, and we’ll be able to help.
When a bank is informed that someone has died, the account is typically frozen to prevent further transactions and reduce the risk of fraud. It remains inactive until legal documentation is provided, such as a death certificate and probate or letters of administration.
Contact the bank’s bereavement or customer service team and inform them of the death. You will usually be asked to provide a copy of the death certificate, proof of your identity, and evidence of your relationship to the person who has died.
Usually the death certificate, your proof of identity, a grant of probate or letters of administration, and bank details for the remaining money. Some banks only need the death certificate and proof of identity for small balances.
Not always. Many banks set a limit, often between £5,000 and £50,000, below which they won’t ask for probate. Check the bank’s own policy.
Apply for letters of administration instead of probate. These give you the legal authority to deal with the estate, including closing bank accounts. Small balances may be released without them.
Yes, if you’re the executor of their estate or you’ve been granted letters of administration. You’ll need the death certificate, proof of your identity and details of your parent’s account.
The money usually passes to the surviving account holder. You still need to tell the bank, which may convert it to a sole account or ask you to close it.
Yes. Most UK banks will pay the funeral director directly from the account if you send the death certificate and the funeral invoice.
If you have all the documents and the bank doesn’t need probate, it usually takes a few weeks. If probate is needed, it will take longer.
No. Personal debts aren’t inherited. They’re paid from the estate before anything is passed on, and if there isn’t enough money in the estate, they’re usually written off. The exception is debt in joint names, which the surviving person may still be responsible for.
Keep copies of everything, follow up in writing and make a formal complaint if needed. If that doesn’t work, you can contact the Financial Ombudsman Service.
Notify each bank individually. If you are managing the estate, keep a list of all known accounts, and ensure you have the required documents for each. The executor must include these accounts in the final estate summary.