Advice on frozen accounts post death

Bertieb_2

My late grandfather prior to his death got divorced from his wife and 2 joint accounts were frozen due to a dispute after she made substantial withdrawels from the accounts.

Upon his death I checked with the bank if these remained frozen or whether they passed to her as would normally happen with a joint account, I was told they would remain frozen without my consent as executor for the funds to be released.

I have today discovered that these accounts were emptied by his ex-wife 3 months after his death. When the bank has looked into it they have now said that I was misinformed and that the accounts became sole accounts in her name on his death.

Has anyone any experience of anything similar as I can't help thinking the bank is just telling me this to try and cover up their error.

Savvy_Sue

Might help to give timeframes? eg when Grandfather divorced Grandmother, when the accounts were frozen, when he died.

Their error may have been them telling you the accounts would remain frozen, of course.

Bertieb_2

Accounts were frozen March 2015
Divorce complete July 2015
Grandfather passed Oct 2015
Accounts emptied Jan 2016

Savvy_Sue

I'd start by using the bank's complaints procedure which should be freely available. As I say, I don't know if they were right to release the accounts and wrong to tell you they'd remain frozen, or vice versa.

TBagpuss

I think that they were wrong to tell you that the accounts would remain frozen, and right to permit the other account holder to empty them, as they would pass to her on your grandfather's death, and would not fall into his estate at all.

SO I think your complaint would be in relation to incorrect information, not any loss of money.

Bertieb_2

Thanks for your responses I have looked at the bank in questions t and c's and if I've read it right they shouldn't just have released them will go in and have another word with them armed with this and if I don't get anywhere will go to financial ombudsman with it.

Yorkshireman99

You have to exhaust the bank's internal complaints procedure before you go to the Ombudsman.

konark

In a joint account the survivor usually becomes sole owner on the death of the other, and the monies do not form part of the deceased's estate.

However, the fact that these accounts were frozen before death , presumably because your grandfather objected to his ex-wife taking money from them should have led to the bank re-assigning the accounts solely to one or other of the divorced parties, or having a both=to =sign restriction as it makes no sense for 2 divorced people to have a joint account in the accepted sense. The fact that the bank did not expedite the necessary measures in a timely manner is the primary problem.

In fact I do not know why your grandfather still had a joint account with his ex-wife, this should have been closed as soon as the divorce papers were signed , if not sooner.

Once an account is frozen at one of the parties' behest it should remain frozen until both parties agree to unfreeze it. Only the deceased's executor can give permission to unfreeze the account so I think the bank were wrong to unfreeze the account, particularly when they knew the parties were separated and previous objections had been raised.

Unfortunately banks' rules are for guidance only and are not legally binding so your complaint must be to the bank, that it did not follow its own procedures or acted in a prejudicial manner in unfreezing the accounts.

TBagpuss

It makes no sense for a divorced couple to have a joint account in most cases, but it is not the banks responsibility to resolve that, it is the responsibility of the parties concerned.

And a joint account doesn't pass to executor / personal representative. It passes automatically, as of right, to the surviving account holder.
So at the point when OPs grandfather died there were no longer two owners of the account. There was one, GF's wife.
Provided that the bank had evidence the GF had died, not only were they not wrong to release the account to the sole owner of that account, they would almost certainly have been wrong to refuse to do so.

Obviously if your GF and his ex had signed paperwork to deal with the account and the bank failed to deal with that then you'd have grounds for complaint .

Savvy_Sue

I think it's clear there is a complaint to be made, but as I said before ...

Savvy_Sue wrote: »

I don't know if they were right to release the accounts and wrong to tell you they'd remain frozen, or vice versa.

Bertieb wrote: »

Thanks for your responses I have looked at the bank in questions t and c's and if I've read it right they shouldn't just have released them

Would be interesting to hear why you think that, given that the normal situation is as described above.

Bertieb wrote: »

will go in and have another word with them armed with this and if I don't get anywhere will go to financial ombudsman with it.

I'd make it a formal written complaint, personally, but as already said you do have to exhaust their internal procedures first.

Savvy_Sue

Just out of interest, who initially told you the account would remain frozen? Did you go into the bank and ask, or speak to the bereavement department? Either is entirely capable of getting it entirely wrong, but the bereavement department is perhaps less likely to do so. Branch staff don't always know the ins and outs of dealing with 'dead' accounts, and don't always know when to refer you to the 'specialists'.