Closing Deceased Person's Bank Accounts: Security Issues

Delphinium_Blue

Hello All, I would appreciate some advice. A close relative passed away in 2017 and I am a beneficiary of their Will. The Executor of the estate is only now asking the solicitor whether he is supposed to cancel/ close the bank and building society accounts. He has a copy of the death certificate, Will, and is in the process of applying for the Grant of Probate. I am concerned the Executor should have closed our relative's bank/ building society accounts many months ago for security. Our relative did not have any online accounts, that I know of, but I am extremely concerned that the Executor's lack of knowledge and procrastination means money may have been stolen. Please tell me, are the accounts at risk from not being closed soon enough? Is it possible any money could have been stolen? Thanks, in anticipation.

Keep_pedalling

The chances of any of the money being stolen is close to zero, the problem is more likely to be that any direct debits or standing ordered have not been frozen and have continued to be paid over the last 2 years.

Owain_Moneysaver

There is some risk, but if you have suffered any loss from the accounts not being closed the executor may be personally liable to creditors and beneficiaries for the amount lost - whether this is through theft or otherwise.

The executor has to notify the banks to stop paying anything out of the accounts ASAP after death, and needs to get a balance at the date of death for the IHT and probate forms. This is in all the "what the executor needs to do" guides and checklists online.

Why this is being done perhaps two years later is highly questionable, unless the Will has only just been found and the executor was previously unaware of his role.

brewerdave

Keep_pedalling wrote: »

The chances of any of the money being stolen is close to zero, the problem is more likely to be that any direct debits or standing ordered have not been frozen and have continued to be paid over the last 2 years.

This.....after my mother's death ,the bank were informed and given a copy of the death certificate HOWEVER, when I got statements a few months later, I found that the Bank had still been paying S.Os and honouring DDs. The Bank recovered the DDs when I complained but I had to approach the recipients of the S.Os ,including a Church!

Skiddaw1

brewerdave wrote: »

This.....after my mother's death ,the bank were informed and given a copy of the death certificate HOWEVER, when I got statements a few months later, I found that the Bank had still been paying S.Os and honouring DDs. The Bank recovered the DDs when I complained but I had to approach the recipients of the S.Os ,including a Church!

I had a similar problem with one of the banks I dealt with when my best friend died (I was her executor). Took quite a bit of sorting out and I wasn't at all happy at the service I received from them.

Owain_Moneysaver

Also, if the bank has been accepting pension and benefits payments there will be a large overpayment to be returned to the creditors.

If inheritance tax is due -- or income or capital gains tax on the estate since death -- there may also be penalties to be paid due to the executor's dilatoriness. As a beneficiary, I'd be asking the executor to meet those costs, not for them to come out of the estate.

Delphinium_Blue

Many thanks for your reply. The executor was aware of his role since before our relative died. We had a copy of the Will straight away. The other Executor resigned, early on, due to personal difficulties, and the remaining Executor has been putting off dealing with the Probate until recently for reasons he cannot adequately explain. Now he's saying he doesn't know if he's supposed to close the bank/ building society accounts! (Just as he is getting close to, finally, signing the Grant of Probate form.) I don't know why he didn't contact the banks, immediately, after our relative passed away. The other beneficiary and I have had many months of anxiety and stress about the Executor's mysterious procrastination. All the time we have been worried that this could result in serious loss of our inheritance but the Executor has been mostly ignoring our concerns. He can be difficult to contact, even on Skype, because he lives in a different country in another time zone. To be honest, I am worn down with all the worry and frustration and feel powerless to do anything to resolve this situation.