Joint Accounts on Death

2010

A friend`s husband died suddenly and they have all their bank accounts in joint names.
She seems to think when she informs the banks that they will freeze their joint accounts.
DAK what the position is please?

getmore4less

In most cases they should just revert to the single name without issue.

BobQ

2010 wrote: »

A friend`s husband died suddenly and they have all their bank accounts in joint names.
She seems to think when she informs the banks that they will freeze their joint accounts.
DAK what the position is please?

A joint account is not part of the estate of the deceased (except for IHT purposes). The other account holder automatically becomes the owner of the funds in the account.

The bank will makean administrative change to remove the deceased's name from the account. It might do this by transferring the money to a new account but more likely they will just change the account name.

It is not the same as with a single account holder when they do freeze the account pending probate or other evidence of future ownership of the funds.

jackyann

I have known banks freeze joint accounts on the death of one account holder. I haven't heard of it happening where it was obviously a husband and wife, current account.
But I have had 3 friends in this situation where they held joint accounts with a parent or other family member for ease of paying bills etc.
I think the lady needs to talk to the bank, who I am sure will make sure she has access to funds.

wwl

A normal joint account, when either holder can sign, will just transfer to the survivor. (which is why joint accounts for normal domestic outgoings is a really good idea).
There can be issues with credit cards, where there is a second card on an account and the accountholder dies, both cards stop, and as the survivor may have little history of their own it may be difficult to get a card in their own name.

wwl

One other thing - if at all possible, go into a branch to deal with this stuff in person rather than trying to do it over the phone. If necessary make an appointment to come back later.
IME, branch staff faced with a real person are usually very willng to help.

Savvy_Sue

The situation where the bank may freeze accounts is more commonly prior to death.

If my MIL made the bank aware that FIL lacks capacity to deal with his financial affairs, then they could freeze them to protect his interests, ie to stop her running off with all the money and leaving him.

She'd then have to arrange to be a deputy through the Court of Protection.

After death it really shouldn't be an issue, and hasn't been with the deaths of either of my parents, even though Mum held accounts jointly with two of her children.

2010

Thanks everyone, it`s only just happened and she was very worried she would be shut out and unable to get cash and pay credit cards etc.

Thank you.

TBagpuss

on a practical level, it would be sensible for her to withdraw a few hundred pounds, so that if the bank does mess up and freeze an account she has some emergency cash available.

But as other posters have said, they should not freeze a joint account as it passes automatically to the surviving account holder