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savings account interest during probate process

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savings account interest during probate process

edited 30 November -1 at 1:00AM in Over 50s Money Saving
4 replies 2.5K views
stevet2607stevet2607 Forumite
16 posts
edited 30 November -1 at 1:00AM in Over 50s Money Saving
Dad died earlier this year. Most of his estate was in Fixed Savings Bonds. All his accounts have been frozen during the probate process.
Can anyone tell me if the money in these accounts continues to earn interest until I have the Grant of Representation and withdraw or decide what to do with the money? (I am sole executor)

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  • dzug1dzug1 Forumite
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    Depends on the T&C of the various bonds, but it would be normal for interest to continue to accrue.

    Best ask the issuer(s)
  • jonesMUFCforeverjonesMUFCforever Forumite
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    .........I would agree but if he was not a taxpayer interest will be taxed as from date of death.
  • CKhalvashiCKhalvashi Forumite
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    .........I would agree but if he was not a taxpayer interest will be taxed as from date of death.

    This is the tax situation from ISAs, so this would be my thinking too.

    CK
    "I kada sanjamo san, nek bude hiljadu raznih boja" (L. Stamenkovic)

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  • BigglesBiggles Forumite
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    stevet2607 wrote: »
    Can anyone tell me if the money in these accounts continues to earn interest until I have the Grant of Representation and withdraw or decide what to do with the money?
    My experience was that all my mother's accounts continued to pay interest at the full rate until either term or probate, whichever came first, with the single exception of Yorkshire Building Society, who terminated her interest forthwith on the grounds she hadn't given them the amount of notice required in their T&Cs (and, yes, it still rankles...).
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