Leaving no will...how bad could it be?

Savvy_Sue

Mojisola wrote: »

The bank in the programme I heard claimed that they had, legally, a duty of care to the husband in a coma and were freezing the account to protect his interests.

I think that is the case I heard about most recently. I'm so glad I'm not imagining it! I'm sure it was also a problem regularly encountered by CABx by a former volunteer who posts on some boards.

Mikeyorks

On the death of one of the parties to a joint account - the account is not frozen. The account and content thereof continues in the ownership of the remaining account holder(s).

DirectGov wrote:

The deceased person may have held money with another person in a joint bank or building society account. Normally this means that the surviving joint owner automatically owns the money. The money does not form part of the deceased person's estate for the purpose of administration and therefore does not need to be dealt with by the executor or administrator.

With what justification (other than suspected fraud / money laundering) therefore, could a Bank freeze the account simply because one of the parties is ill? It simply doesn't compute - nor does it happen unless you are unfortunate enough to deal with an idiot at the Bank. Which is why I carefully said - at post #2 - you don't need to tell the Bank. Indeed it is best avoided.

For couples - a joint account gives optimum flexibility on the death of one of them. As it does not tie up incoming credits nor outgoing debits.

Mojisola

When one account holder dies, the other person owns all the money so the bank can give him/her access. When there are two account holders alive but one is not capable of managing his/her own affairs, it's a different situation.

The best thing is not to tell the bank but, in the case I heard about, the wife was a SAHM and she was hoping the bank would be understanding while the family were trying to manage on a reduced income. That totally back-fired!

It wasn't just some idiot at the bank. The bank spokesmen stood their ground when interviewed about having a duty of care to both account holders.

LindaJane47

what happens if the house is in his name only? anybody know? Our house is in my husbands name only, but our wills are 'everything to surviving spouse, then after his/her death, everything split between children and nieces' Just wondering what would happen if there was no will and the house was still in his name only?

Mojisola

LindaJane47 wrote: »

what happens if the house is in his name only? anybody know? Our house is in my husbands name only, but our wills are 'everything to surviving spouse, then after his/her death, everything split between children and nieces' Just wondering what would happen if there was no will and the house was still in his name only?

Without a will, the intestacy rules would apply - https://www.youngandpearce.co.uk/intestrules.htm

In this case, if the husband died first, the wife could be left with only owning part of the house and no cash - it all depends on the value of the house.

meg72

Mojisola wrote: »

The bank in the programme I heard claimed that they had, legally, a duty of care to the husband in a coma and were freezing the account to protect his interests.

I think this depends on what was agreed when joint account was opened,As I remember when I opened joint account we were asked
either or both to sign for withdrawals, Foolishly I agree to either and when he left he took the lot.