Joint bank accounts post-bereavement

Yorkie1

My parents have a joint bank account but Dad is unconscious / seriously ill. We are starting to plan for post-bereavement, which is likely to occur at any point in the next couple of weeks.


A family friend has suggested that Mum sets up her own bank account and transfers money to it in advance of Dad's death, to prevent problems with the joint account once he does die.


I know that there can be difficulties when the account is in the sole name of the deceased. However, in the case of a joint account, is this advisable, or should the joint account continue without any hiatus when we notify the bank of the death?

YorkshireBoy

Account ownership (and any funds therein) transfers to the other party upon the death of one joint account holder. If you say which bank it is someone will point you to the relevant clause in the T&Cs for your peace of mind.

CLAPTON

Yorkie1 wrote: »

My parents have a joint bank account but Dad is unconscious / seriously ill. We are starting to plan for post-bereavement, which is likely to occur at any point in the next couple of weeks.


A family friend has suggested that Mum sets up her own bank account and transfers money to it in advance of Dad's death, to prevent problems with the joint account once he does die.


I know that there can be difficulties when the account is in the sole name of the deceased. However, in the case of a joint account, is this advisable, or should the joint account continue without any hiatus when we notify the bank of the death?

a joint a/c is 100% owned by each party so your mother can continuing using it as now.

it would be good practice to remove your fathers name from the a/c after death but there is no urgency.

if you want further reassurance refer to the T&Cs of the a/c

Yorkie1

Many thanks to you both for your replies. I had thought that would be the situation.


It's the Co-operative Bank.

Mojisola

YorkshireBoy wrote: »

Account ownership (and any funds therein) transfers to the other party upon the death of one joint account holder. If you say which bank it is someone will point you to the relevant clause in the T&Cs for your peace of mind.

This is the right answer but not all banks handle things well after a death. It wouldn't do any harm for your mother to open another account and transfer some of the money into it.

YorkshireBoy

Mojisola wrote: »

...not all banks handle things well after a death.

They get a rough ride on here, but I have to say this is one thing that Yorkshire Bank (in branch) were very good at. No complaints at all.

YorkshireBoy

Yorkie1 wrote: »

It's the Co-operative Bank.

http://www.co-operativebank.co.uk/assets/pdf/bank/currentaccounts/common/banking-terms-and-conditions-5-jul.pdf


See condition 18.8

Mojisola

YorkshireBoy wrote: »

They get a rough ride on here, but I have to say this is one thing that Yorkshire Bank (in branch) were very good at. No complaints at all.

I'm sure it's only a very small percentage of cases that have problems with the banks but life is hard enough after a death so it's worth doing things beforehand that you know will make things easier.

jonesMUFCforever

There would only be a problem if the joint account is overdrawn.
Otherwise there is no need to worry - the joint account reverts to the survivor - with most banks the account number and everything stays the same.

YorkshireBoy

jonesMUFCforever wrote: »

There would only be a problem if the joint account is overdrawn.

What would be the "problem" in such circumstances?

with most banks the account number and everything stays the same.

I would have thought they'd stay the same with ALL banks. Which bank(s) change(s) the "account number and everything*" when one joint account holder dies?


* By "everything" I assume you're referring to the sort code?

jonesMUFCforever

YorkshireBoy wrote: »

What would be the "problem" in such circumstances?I would have thought they'd stay the same with ALL banks. Which bank(s) change(s) the "account number and everything*" when one joint account holder dies?


* By "everything" I assume you're referring to the sort code?

It would be blocked.
There is banking case law confirming this

The sort code and account number would stay the same - certainly when I dealt with parents accounts with Lloyds - they took copy of death certificate and took dad's name off account leaving everything in mum's name.

I know you are going to ask me the case - I admit I do not know the answer just now.

I was aware on a thread on here that a certain bank will not allow you to make a joint account - sole they make you close the joint and open a new account - not sure if this happens when one party dies.