Question about bank accounts after death.

lawrie28

zzzLazyDaisy wrote: »

I have never heard of someone being a 'signatory' on another's personal account (apart from under a Power of attorney, which you have confirmed was not the case).

However it does sometimes happen that an account is put into joint names with another person, to allow them access to the account. The problem is that the law relating to joint accounts is that on the death of the first joint account holder, the funds automatically pass to the surviving joint account holder, and do not fall into the estate to be distributed under the will. If that is what happened, the money would in law belong to the second joint account holder and they would be legally entitled to remove the money following the death of the first joint account holder.

So your first step needs to be to establish what exactly the situation was regarding this account. If, for example, you have access to cheque book or bank statements it should be fairly obvious whether the account was held in joint names.

It might help if you are able to explain how the second person came to be named on the deceased's bank account.

For example if the second account holder was a second wife or live-in partner, this might be viewed differently from a situation where the second account holder was a cleaner who came in occasionally to help the deceased, who was suffering from dementia at the time and did not understand what he was doing when the second person was added to the bank account.

The relationship is a deceased parent and one of their children.

I dont have any of the bank details, but do know there was no power of attorney. From what i have read, it would be easier if there was. It was an arrangement made with the bank with the auth of the account holder and it had always been referred to as a signatory on the account. It is possible this could have been a note on the account allowing access to info to this person with authority to get through ID and data protection. If so this could have meant that internet access to the account was set up on the account, with this person then getting the info to access the account online....

Hmmm need more info.....

lawrie28

Think it was a Third party Mandate.

webtalk

lawrie28 wrote: »

Think it was a Third party Mandate.

I was thinking that too.

I am pretty sure signing power stops when a person dies.

opinions4u

Unless it was a joint account that money should not have been moved prior to registration of death.

Gers

Interesting question though!

I have a third party mandate (RBS) on my mother's saving account -complete with an ATM card and a cheque book which says 'my name as 3rd party for my mother's name' on it - with the express intention that I am able to withdraw monies on it in the immediate aftermath of her death or in the event of any other emergency.

Does doing this mean that it would be unlawful/illegal?

The account and the funds have never been used (cheques dated May 2006) as it's emergency funds.

Perhaps it's time to close this account?

I also have continuing power of attorney which I know ceases upon death of the granter. (Scotland).

Norman_Castle

The person was intending to be the executor of the estate (as agreed by family), but had not got the neccesary paperwork at the time and the estate is now being handled by a solicitor.

The person should now hand the funds to the estate. Failing to do this would be theft.

Wywth

lawrie28 wrote: »

The relationship is a deceased parent and one of their children.

I dont have any of the bank details, but do know there was no power of attorney. From what i have read, it would be easier if there was. It was an arrangement made with the bank with the auth of the account holder and it had always been referred to as a signatory on the account. It is possible this could have been a note on the account allowing access to info to this person with authority to get through ID and data protection. If so this could have meant that internet access to the account was set up on the account, with this person then getting the info to access the account online....

Hmmm need more info.....

Presumably the 'child' is over 18 years old.

Like zzzLazyDaisy, I too have never known the arrangement you suggest to exist; the banks either want a PoA or for the signatories to be joint account holders.

If it was a joint account, then usually the account reverts to a single account in the surviving account holder's name.
If PoA, then the bank account is frozen pending correct papers from the executors to distribute the estate.

Wywth

lawrie28 wrote: »

Question about bank accounts after death. I know this isn't strictly the subject of this section of the forum, but seemed the best fit.

Can anyone tell me about bank accounts when some dies.
If someone is a signatory on someone elses bank account, can they remove funds from the account after the account holder has died?

I know they shouldn't, but if they did, what would happen?

Does it matter if the bank are aware the person has died, even though the signatory is aware?

Would it matter if that person was intending to execute the estate?

Thanks in advance

lawrie28 wrote: »

The Bank did freeze the account, but not until paperwork was taken in, which was after the funds were removed (a few days after death, multiple transactions).

Any idea if this is this something that the solicitor will investigate and pursue as the executor and as part of the legal obligation of being the executor, through to the reporting to the police? Or would it have to be other beneficiaries/bank that may need to do this?

Thanks everyone.

Hang on, so is this surviving child, also the solicitor acting as executor??? :huh:

Wywth

lawrie28 wrote: »

At this stage the solicitor handling the estate is unable to comment and advise us, ...

Then I suggest you go and find a solicitor that can

Not quite a Corporal Jones thread, but does anyone else think we are not getting the full story, and only being given bits & pieces to try and appease those trying to assist.

At the end of the day it's the OP who presumably wants help, and that canonly be given on the details provided. The applicability of the advice is only as good as the veracity and fullness of the details provided.

And because I'm not certain we are being given these, I'm, in Dragen's Den style, declaring myself ... OUT!

jonesMUFCforever

Firstly a bank can only act when it has seen a death certificate.
Knowing that someone has died through say local knowledge is not enough.
If indeed a child has third party access then it will stop when the bank is informed of the death so any entries before then would be deemed as legit - however unpalatable this is.

As a solicitor is now involved I would suggest copy statements are given to them for them to ask this person to justify the withdrawals.

There is no liability on the bank here whatsoever - the arguments will between the family/executors/solicitor dealing with the estate.

(The same would apply with a Power of Attorney - it dies with the deceased).