Bank account frozen following death - can money still be paid in?

Hungerdunger

My mother-in-law died earlier this week, and as a result her bank account is now frozen.  She was in a residential home for a couple of years until her death, and we had been renting out her house to help towards the costs of her care. The rent has been paid by the Agents into my Mother-in-law's bank account. (My wife and her sister had Power of Attorney for her financial affairs)

My wife and her sister, who are the only beneficiaries of the will, intend to continue renting out the house for the foreseeable future.  But as the bank account is frozen, what will happen if the Agent tries to pay money into it between now and Probate being granted? Can my wife open a new account to receive the money, and add it in to the value of her mother's estate?  And what would happen if a major repair was needed to the house before the estate was sorted out?

There's probably a simple answer, but we're a bit confused at present.

Bobziz

Some banks will still accept payments in. Nationwide does. Who's the executor ? I'd expect them to manage the estate in terms of taking receipt of money owing and arranging emergency repairs to protect the assets.

parcival

Royal Bank of Scotland does not allow any credits they are returned to sender........

badger09

As above, depends on the bank. HSBC will allow payments in. Ask the bank's Bereavement team -  they will know their bank's procedure. Executor could open a new account and arrange for future payments to go into that.

getmore4less

Is there a will with named executors.

if there is and one of them had POA and the agents know that(have done their checks) then that person has the authority(from the will) to change the account the money goes to if there is a problem with the one it is currently getting sent to.

the EA may not even bother checking if you give them a new account to send the money, 
As the account it goes to now is frozen it is probaably best to direct the money elsewhere to build a cash pot in case something need spending before you get access to the other estate assets

xylophone

You might ask the agent to hold the rent monies until such time as you can open an  exor account which should be possible once you have probate.

Have you advised the insurer of the property that the owner has died?

And what would happen if a major repair was needed to the house before the estate was sorted out?

If as the result of accident/ weather etc, you could claim on the insurance.

Otherwise the exors would cover it and claim from the estate after probate.

Hungerdunger

Thanks everyone for your replies, and apologies for not getting back sooner.

My wife spoke to the bereavement team at Barclays yesterday, who didn't offer much help other than saying that her mother's account would be frozen.  As she and her sister are the executors, from your comments it appears that it would be OK for them to open a joint account to receive the payments of rent. As we are new to all this we weren't sure whether that was allowable, but it seems the simplest solution.

getmore4less

When it comes to estate no one checks it is all done properly anyway. it is not like you get your homework checked by teacher.

It is down to the people doing the job and the people they deal with  to do what is right.

There is a lot of things to deal, few are hard,  but as long as tax gets paid and beneficiaries are happy most estates are simply a  slog through the process.

The key things are a good inventory and account of assets and cashflow so you can work out things like what taxes are due and who gets what.

when it comes to getting money in it is a good idea to have this go into a new account as that helps keep track and administrors can set one up(does not have to be joint) and they hold the money as a trustee.

Technically there are somethings that should not be done until there is a grant, but with named executors their powers come from the will so can start the process.

As the plan is to keep the rental running with new owners it will be worth looking at the tax options for that business, it might be that it has to be part of the estate for a while(which creates paperwork) or you may be able to treat it as immediate transfer to the beneficiaries and they take on all the business admin and tax liabilities personally from DOD.

JGB1955

My experience with Barclays is that they DID accept a credit to the account after it was frozen.  A dividend was credited to the account about a week after being frozen.  That dividend was then included in the amount transferred into my own (new) account a few days later.  A direct debit was returned unpaid.

Savvy_Sue

It's possibly going to be easiest to open a new account with a bank where at least one of the executors already holds one: if you are 'known' to the bank the ID checks are probably not required. If you don't have a bank in common, it's still possible you can add the other party, but they will have to provide ID. 

unholyangel

Had the agent been notified? Any agency they had for your MIL would have ended upon her death. They should agree a new contract with the executor/beneficiary.