Bank emptying deceased account for single beneficiary

dunroving

Malthusian wrote: »

You were talking to a checkout assistant. Experts cost money and don't spend their days stamping cheques.

She wasn't a checkout assistant, she was a personal banker. We met with her by appointment with the Barclays Bereavement Team.

According to her she dealt with 2 "of these" (deceased customer situations) every week and had been working for the bank for 40 years.

littlerock

when my father in law died, his wife notified bank, Barclays, who immediately they had proof, emptied his account to cover his outstanding loans. She was advised this was legal.

dunroving

Thanks for the helpful replies. It seems the key advice is that if the daughter accepts the residual amount from the accounts, she should beware that the credit consolidation agency, or the original creditors, might come for it, so she shouldn't spend it. And also that the indemnity form is Barclays' way of ensuring that anyone else who was entitled to the money (credit agency, other beneficiary) can't chase Barclays. Would that be an accurate summary of the situation?

Yorkshireman99

dunroving wrote: »

Thanks for the helpful replies. It seems the key advice is that if the daughter accepts the residual amount from the accounts, she should beware that the credit consolidation agency, or the original creditors, might come for it, so she shouldn't spend it. And also that the indemnity form is Barclays' way of ensuring that anyone else who was entitled to the money (credit agency, other beneficiary) can't chase Barclays. Would that be an accurate summary of the situation?

It means that Barclays can recover the money paid out if a better claimant comes along. Is there a will?

dunroving

Yorkshireman99 wrote: »

It means that Barclays can recover the money paid out if a better claimant comes along. Is there a will?

No, she died intestate and so (my understanding is that) the beneficiaries are her two children (my step-sister and step-brother).

Her husband (my father) died 30 years ago and her only other close relatives are two sisters and her ex-husband, who has remarried and I don't see in a month of Sundays would try to lay claim to the small amount we are talking about.

p00hsticks

dunroving wrote: »

Thanks for the helpful replies. It seems the key advice is that if the daughter accepts the residual amount from the accounts, she should beware that the credit consolidation agency, or the original creditors, might come for it, so she shouldn't spend it. And also that the indemnity form is Barclays' way of ensuring that anyone else who was entitled to the money (credit agency, other beneficiary) can't chase Barclays. Would that be an accurate summary of the situation?

Yes, as far as I'm aware. And, as she has now taken the steps to deal with the estate and obtain the money, I think that there might be a bit more of an onus on her to actually go out and seek out those creditors and let them know of the death, not just sit back and wait and see if they eventually come chasing....

Yorkshireman99

dunroving wrote: »

No, she died intestate and so (my understanding is that) the beneficiaries are her two children (my step-sister and step-brother).

Her husband (my father) died 30 years ago and her only other close relatives are two sisters and her ex-husband, who has remarried and I don't see in a month of Sundays would try to lay claim to the small amount we are talking about.

The children should apply for letters of administration.

dunroving

Yorkshireman99 wrote: »

The children should apply for letters of administration.

This is what I thought, but no-one has asked about the administrator of the estate other than the house insurance company who said the administrator would be the person to continue paying the house insurance premium.

What are the main reasons to apply for administration? Their (beneficiaries) current plan is:
1) Arrange funeral (costs paid by Barclays from deceased's account).
2) Empty house (nothing really of monetary value in it).

The house was left in trust to 4 people from my father's will 30 years ago and we have been trying (somewhat unsuccessfully) to get the original executor (solicitor firm; individual solicitor no longer works for them) to start thinking about winding up my father's estate by selling the house and distributing proceeds to the 4 beneficiaries of my father's will. But this is a separate issue to the recently-deceased's estate as far as I can tell.

Keep_pedalling

dunroving wrote: »

This is what I thought, but no-one has asked about the administrator of the estate other than the house insurance company who said the administrator would be the person to continue paying the house insurance premium.

What are the main reasons to apply for administration? Their (beneficiaries) current plan is:
1) Arrange funeral (costs paid by Barclays from deceased's account).
2) Empty house (nothing really of monetary value in it).

The house was left in trust to 4 people from my father's will 30 years ago and we have been trying (somewhat unsuccessfully) to get the original executor (solicitor firm; individual solicitor no longer works for them) to start thinking about winding up my father's estate by selling the house and distributing proceeds to the 4 beneficiaries of my father's will. But this is a separate issue to the recently-deceased's estate as far as I can tell.

Considering Barclays will release what little estate their is I don't see why LOA would be required for such a small estate.

The estate does not own the house so insurance costs should not fall on it or however is administering it.

You should be aware that the estate may be insolvent. After funeral costs there is going to be about £3000 left, and if her debts are higher than that it deffinately is.