What happens to a bank account when someone dies

When someone dies, their bank does not simply carry on as before. If the account was in their sole name, the bank freezes it once it is told of the death, cancels Direct Debits and standing orders, and stops cards, interest and fees. No one can touch the money until the estate is sorted out, though most banks will release funds for the funeral before probate is granted¹. If the account was in joint names, it normally continues in the surviving holder's name, and probate is not needed for it².

The practical questions most people face are: how do I tell the bank, what documents does it want, when does it need probate, how do I pay the funeral, and who has to pay the debts. This page answers each in turn, using the rules as banks, the government and independent advice organisations state them. Where a figure or deadline comes from one bank's own process, it is labelled as that bank's rule, because thresholds and timescales vary between banks.

Sole accounts are frozen once the bank is told

An account held in one person's sole name does not stay open for family to use. nidirect, the Northern Ireland government service, states plainly that if the account was in the person's sole name, no one will be able to touch the money until the estate is sorted out¹. Marie Curie, the charity, describes the same process: once notified, banks will usually freeze the account⁸. The bank may temporarily stop access, but it might still release money for funeral costs, as mygov.scot notes for Scotland⁹.

What the bank does on freezing varies in detail but follows a pattern. Barclays, for example, freezes sole accounts within 24 hours of being notified, cancels standing orders and Direct Debits, stops charging interest and fees, cancels all cards, and returns payments received after notification². The freeze is not a penalty; it exists so that money is not spent before it is clear who is entitled to it, and so the bank does not keep collecting payments for services the person no longer uses.

The freeze also protects the estate in another way. If the person had loans, overdrafts or a credit card with the same bank, the bank recovers what they owe from their current account before releasing any remaining money². This is the bank's right of set-off applied at death, and it means the balance available to the estate can be smaller than the statement showed.

Joint accounts pass to the surviving holder

A joint account behaves very differently. MoneyHelper, the government-backed guidance service, states that if an account holder passes away, the joint account will continue in the remaining names³. nidirect confirms that if you had a bank account in joint names, you can still usually use the account¹. Barclays removes the deceased person's name from joint accounts, and the remaining account holders can continue using them; probate is not needed for joint accounts². NS&I, the government savings provider, applies the same rule to its own joint accounts: on the death of one holder, the surviving holder gets ownership of the account¹⁰.

There are two things a surviving holder should know. First, the account still needs attention: Direct Debits and standing orders keep running, and bounced payments can bring heavy bank charges, so there needs to be enough money in the account to cover them³. Closing a joint account will not remove the link to the other person from your credit file; a "notice of disassociation" can be requested from credit reference agencies if there is no other financial connection between you³.

Second, in Scotland the money may still count towards the deceased person's estate. Citizens Advice Scotland explains that where the holders were married or in a civil partnership, a surviving joint account holder might have to prove they paid in all the money for the account to be excluded from the deceased's estate; where the holders were not married or in a civil partnership, the executor must establish how much of the account belonged to the person who died so the estate can be valued for inheritance tax¹¹. Which? makes the same point for the UK generally: money that came from the deceased in a joint account still counts towards their estate for inheritance tax purposes, and the account should be reported as part of the probate process¹². The dedicated guide to joint bank accounts covers how these accounts work day to day.

Telling the bank: what you need to provide

Banks offer a bereavement process, and it starts with notification. Barclays accepts notification through an online form, by phone, by video or branch appointment, or by letter; its online form can be filled in at any time without needing to call or visit². It then issues a reference number starting BRV, which its bereavement team uses to answer queries². Several banks also work with the Death Notification Service, which tells a number of banks, building societies and financial institutions about a death at the same time; no account is needed to use it, and it has a helpline on 0333 207 6574, open 08:30 to 17:30 Monday to Friday excluding bank holidays⁶.

The documents the bank needs are fewer than many people expect. To release money for a funeral, Quaker Social Action's Down to Earth service advises taking a copy of the death certificate and a copy of the funeral bill to the bank⁴. Many banks accept interim death certificates, coroner's certificates, and non-UK death certificates that have been translated into English for this purpose⁴, and Barclays states it accepts the same range, as originals or photocopies². Barclays also lists the identity documents it accepts from the person dealing with the estate, including a valid full or provisional UK or international driving licence, a valid UK or international passport, a UK residence permit, an HM Armed Forces Veteran Card, a Blue Badge showing a serial number, a child or working tax credit letter, or a benefit entitlement letter dated within the last 12 months (original only)².

Other organisations will ask for similar evidence at the same stage. A Funeral Support Payment application in Scotland can involve up-to-date bank statements for the person who died¹³; a Funeral Expenses Payment claim through Turn2us needs the final statement for the person's bank account¹⁴; and a Bereavement Support Payment claim needs your National Insurance number as well as your partner's, your bank account details and the date your partner died¹⁵. Separately, HMRC must be told who is dealing with the estate: if you cannot call its helpline, you fill in form P1000¹⁷. The Tell Us Once service, reported by gov.uk, lets most deaths be reported to several government departments in one go¹⁷.

Probate: needed above £50,000 at some banks

Probate (called confirmation in Scotland, and letters of administration where there is no will) is the legal document that proves who has authority to deal with the estate. Banks set their own thresholds for when they insist on seeing it. Barclays requires a grant of probate, grant of confirmation or letters of administration if the person had more than £50,000 across their sole accounts with it². Other banks set their own limits, so the figure for one bank is not the rule for all.

Below the threshold, the bank can release the balance to the personal representatives on sight of the death certificate and proof of their own identity. Above it, the money stays frozen until the grant is produced. Which? notes that a joint account should be reported as part of the probate process even though the survivor keeps it, because the deceased's share counts for inheritance tax¹². Marie Curie adds that funeral expenses can usually be paid out of the account before probate has been granted, so the grant is not a barrier to burying the person⁸.

The stages a bank account goes through after a death, from notification to the final release of money.

Paying funeral costs and priority bills before probate

Funeral costs have a special legal status. Social Security Scotland describes them as a "priority debt"¹⁸, and Age UK notes that funeral costs take precedence over most other debts¹⁹. Quaker Social Action sets out the order in practice: the first priority for any money left by the deceased is the funeral, before rent, utilities and other bills, with one exception, secured loans such as a mortgage, which must be paid first⁴. Its FAQ repeats the point: money left by the person who died must be used towards the funeral before rent and utilities, and funeral expenses are often the highest priority except for some secured debts⁵.

You do not wait for probate to get this money. If there is money in the deceased person's accounts, the bank can usually release it directly to the funeral director on presentation of the death certificate and funeral invoice, at a branch or online at most banks⁵. Most banks will release funds before probate for a funeral if presented with a funeral director's bill¹². Barclays goes further: money in the person's accounts can pay priority bills and cover funeral costs, including funeral payments already made². The executor or administrator of the estate can use the deceased person's assets, including bank accounts, to cover funeral costs⁴.

Two cautions apply. First, if the estate is later found to owe money to the public purse, help with the funeral can be clawed back: in Scotland, if the person who died had assets, Funeral Support Payments may need to be repaid from them before any inheritance is paid¹³. Second, the personal representative must pay the deceased's creditors before anything is paid to beneficiaries²⁰, so funeral costs come first but they do not exhaust the list. Where the estate cannot cover the funeral at all, a Funeral Support Payment in Scotland or a Funeral Expenses Payment elsewhere in the UK may be available¹³.

Debts come first: overdrafts, loans and credit cards

Debts do not die with the person, but they do not automatically fall on the family either. The rule National Debtline states is that only a person who signed the credit agreement can be held liable for credit debts such as credit cards, overdrafts, unsecured loans and catalogues; the money owed can be recovered from the estate⁶. Business Debtline repeats the same rule²⁰. If the person had debts in joint names with someone else, the surviving person is responsible for paying the whole amount of those debts²¹. Barclays applies this to its own products: for a loan in joint names, the remaining account holder becomes solely responsible and should continue repayments or repay in full².

Within the estate, debts are paid in a strict order. Where the estate is insolvent, National Debtline sets out the order: secured creditors first; then reasonable funeral, administration and testamentary expenses; then preferred and preferential debts such as employee wages; then unsecured creditors; then interest on unsecured loans; and finally deferred debts such as an informal loan between family members⁶. If the money runs out partway down the list, the remaining debts are likely to be written off⁴. Quaker Social Action adds that debts solely in the name of the person who died should be wiped if there is no money left in the estate after the funeral has been paid²².

Before assuming a debt is owed, check for insurance. nidirect advises checking whether the deceased's debts are covered by death cover for a mortgage, payment protection cover for personal loans or credit cards, or "death in service" benefit from a pension¹. Some debts come back to the estate automatically: a benefit overpayment, once established, should be treated as a debt and paid automatically from the estate²¹, and the DWP normally makes a claim from the estate for recoverable overpayments, administrative penalties and Social Fund loans²³. Credit card debt in the sole name of someone who left no assets should be written off⁷. The debt section of this site covers these rules in more depth.

Savings, ISAs and bonds after a death

Savings accounts follow the same pattern as current accounts: the balance becomes part of the estate. NS&I's Direct Saver terms state that if the account holder (or last surviving holder of a joint account) dies, no more deposits can be accepted, the balance becomes part of the estate, and the account continues to earn interest²⁴. Its Income Bonds work the same way: no further deposits, the balance forms part of the estate, and interest continues²⁵.

ISAs have their own rules, and one valuable exception. Under the Individual Savings Account Regulations, an ISA (other than a junior ISA) becomes a "continuing account of a deceased investor" on death, with special treatment while the estate is administered²⁶. Barclays asks whether to close and settle ISAs or keep them open for a maximum of three years from the date of death, with no further payments in but interest continuing². A Lifetime ISA ends on the date of death, and there is no charge to withdraw the funds or assets from the account²⁷.

The exception is for spouses and civil partners. Barclays offers a one-time Additional Permitted Subscription (APS), letting a spouse or civil partner pay into their own ISA up to the amount the deceased held in their ISAs when they passed away². NS&I's Direct ISA applies the same rule: you can inherit an additional ISA allowance if your spouse or civil partner dies, up to the value of their ISA at the date of death²⁸. Which? explains the tax position around it: ISAs are not excluded from inheritance tax, so while widowers can inherit their partners' ISAs tax-free, for everyone else the money loses its ISA status and forms part of the estate¹⁵. The ISAs section explains how these accounts work.

Bonds and children's accounts have their own settlements. Barclays says bonds can be left open until maturity and then paid to the personal representative, or closed when the estate is settled without loss of interest or penalty²; NS&I's Green Savings Bonds pass to the surviving holder on a joint account, or to the estate otherwise¹⁰. Money in children's savings accounts is sent by Barclays as a cheque made payable to the child, with the personal representatives responsible for ensuring it reaches them². For a government childcare account, the relevant percentage must be paid to the account holder's personal representatives²⁹. One further case: a direct payments account used for care funding is not part of the estate, and the balance must be returned to the council on death³⁰.

Mortgages: 12 months to repay or decide at some lenders

A mortgage is a secured debt, so it sits at the top of the estate's payment order⁶. What happens to the account depends on how the property was owned. For joint mortgages on properties owned as joint tenants, Barclays can change the account to the name of the remaining borrower; for tenants in common, it contacts the personal representatives to explain the options, and interest continues while the account is open². For a sole mortgage, Barclays gives personal representatives a deadline: they must repay the outstanding balance, or say what they will do with the property, within 12 months².

What happens to a sole mortgage after a death, from notification to the 12-month decision point.

The regulator's rules set a fallback where no repayment date is agreed. The FCA's Mortgage Conduct of Business rules require a term of 12 months to be assumed where the customer cannot suggest a repayment date, in cases other than a retirement interest-only mortgage³¹. If the family cannot keep up payments, repossession is not immediate: Scope notes that how long you have before a lender repossesses depends on the lender, and it can take up to 6 months³². A loan for mortgage interest (the support scheme that pays mortgage interest) must be repaid when you sell the home, when the title is transferred or disposed of, or when you die³³.

Lifetime mortgages, the most common form of equity release, work differently again. The Equity Release Council explains that for couples the repayment is not made until the last remaining person living in the home dies or moves into care³⁴, and that the loan plus interest is repaid from the sale of the property, on death (or second death) or a move into long-term care³⁵. National Debtline puts it simply: the loan and any interest are paid back when you die or move into long-term care³⁶. Which? adds that no monthly repayments are required on these products, though some now allow them, and the debt grows over time, eroding the property's value³⁷. The mortgages section covers these products in full.

Where a power of attorney stops working

A power of attorney is a living arrangement, and it ends at death. Barclays states that when someone dies, any Power of Attorney set up on their account is no longer valid². The government's guidance on enduring powers of attorney says the same: your EPA ends when you die³⁸. Which? explains what replaces it: LPA powers end when the donor has died, and the personal representative or executor takes control¹².

This catches out families who have been managing an account for years under a registered power of attorney. The attorney's card, online access and authority all stop at the moment of death, even if the bank has not yet been told. From that point, only the personal representatives can deal with the account, and they need the death certificate, their own identity documents and, above the bank's threshold, a grant of probate. The guide to power of attorney and third party access to bank accounts explains what these arrangements can and cannot do while the account holder is alive.

Inheritance tax and the estate's deadlines

Money in the deceased's accounts forms part of the estate for inheritance tax, including their share of any joint account¹². HMRC's rules on interest are strict: interest is charged on unpaid inheritance tax from the first day of the seventh month after the month in which the person died³⁹. That gives the personal representatives roughly six months from the death to value the estate, including bank and savings balances, and pay any tax due before interest starts running.

The valuation of joint accounts differs by relationship and by nation. In Scotland, a surviving spouse may have to prove they paid in all the money for the account to be excluded from the deceased's estate; holders who were not married or in a civil partnership need the executor to establish how much of the account belonged to the deceased¹¹. Elsewhere in the UK, the money that came from the deceased counts towards their estate for inheritance tax purposes¹². ISAs are not excluded from inheritance tax, except for a surviving spouse or civil partner inheriting them¹⁵.

Where to get free help

Several organisations offer free, impartial help with the money side of a death. Age UK publishes a guide to what to do when someone dies, covering the estate and the paperwork¹⁹. Quaker Social Action's Down to Earth service helps people on low incomes with funeral costs and debts of the estate, and its after-funeral guidance covers what happens next⁴. National Debtline and Business Debtline both publish guides to debts after death, including the order debts are paid and when they are written off⁶. Advice NI offers equivalent guidance for Northern Ireland, including dealing with the debt of someone who has died²¹.

For the benefits side, a Bereavement Support Payment can be claimed through nidirect in Northern Ireland¹⁶, and Which? explains the widows' pension and bereavement allowance rules⁴⁰. In Scotland, mygov.scot covers funeral costs and what can be paid from the estate⁹, and Social Security Scotland administers Funeral Support Payment and explains how funeral costs are recovered from estates¹³. Turn2us explains how to claim a Funeral Expenses Payment elsewhere in the UK¹⁴. HMRC's Tell Us Once and form P1000 process handles telling the tax authorities¹⁷. MoneyHelper, the government-backed money guidance service, is free to use and covers joint accounts and closing accounts³.