Fixed term bonds when someone dies

gplondon

I'm an executor of the estate of a relative who has died and I'm surprised that the terms & conditions of her fixed rate bond with Shawbrook Bank say the account has to run to the end of its term before they will release the funds.

All other Ts & Cs I've found online say the term will end at death. Are Shawbrook within their rights?

opinions4u

They are within their rights. Section 12.2 of the T&Cs confirms this.

Whether or not they enforce the T&Cs in the case of death isn't clear though.

You would also be within your rights to complain. See section 17 of the T&Cs.

https://www.shawbrook.co.uk/sites/default/files/Shawbrook_Personal_Savings_Account_Terms_and_Conditions.pdf

ed123_2

...but section 12.2 and 12.11 does not mention release of funds to the executor of an estate (just the named account saver, or passing the account to a joint saver when one of the joint saver dies). I can't see anything in the t&c re releasing funds to an executor? have you rung them up and asked them?.......ed

twinkle10

In fixed term bonds saving accounts are designed for the cash of period of time between 6 months and 5 years. Even if has been taken for the death benefit, each term tends to come with its own interest rate wherein risks are involved in making account attractive to the money savers.

le_loup

Agreed but, most account of that type expire upon death.

ChiefGrasscutter

I would have though it would be illegal under some law/regulation.

The executor has a duty to collect in monies and to distribute them to the will beneficiaries. Having an account which deliberately blocks this for part of the money in the estate frustrates this process.

dunstonh

I would have though it would be illegal under some law/regulation.

The executor has a duty to collect in monies and to distribute them to the will beneficiaries. Having an account which deliberately blocks this for part of the money in the estate frustrates this process.

It is not illegal and it is not unlawful.

There are actually quite a lot of investments that do not redeem to cash on death but remain as an asset to be passed in situ. It can frustrate the estate process but such is life. Ideally, you find a beneficiary (if there are multiple ones) that is happy to continue to the fixed term deposit.

Lokolo

On my death bed I think I might just do that - put all the money in a 5 year fix. That'll pee everyone off.

*taking the p*** even when he's dead* will be written on my gravestone.

le_loup

Ah but, when one so young reaches the age to say goodbye, they will have perfected living forever ... so it could be you that can't access your cash.