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what happens to an overdraft facility if one partner on a joint account dies?
Comments
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colsten said:bonkersbonkers1 said:colsten said:bonkersbonkers1 said:Once they hear about the deceased they will freeze the account if it is overdrawn.
It is a good idea to transfer payments in and out to a new / other account before you tell them.
If you de-camp to another bank and don't reduce the O/D, you might well get a demand for immediate repayment. So try to reduce the O/D a bit every month until you have figured out how you can improve your situation. Have you been to Citizens Advice, or to a debt charity?
Sorry can't remember the case law.0 -
bonkersbonkers1 said:colsten said:bonkersbonkers1 said:colsten said:bonkersbonkers1 said:Once they hear about the deceased they will freeze the account if it is overdrawn.
It is a good idea to transfer payments in and out to a new / other account before you tell them.
If you de-camp to another bank and don't reduce the O/D, you might well get a demand for immediate repayment. So try to reduce the O/D a bit every month until you have figured out how you can improve your situation. Have you been to Citizens Advice, or to a debt charity?
Sorry can't remember the case law.2 -
Sorry to piggy back on another poster's question but I am in a somewhat similar position and would also like some advice.My father passed away 3 weeks ago and was £1250 overdrawn at the time of his passing. Since then I have put money in (over £1000) and then used most of that for the funeral deposit, currently it is £935 overdrawn.This was my dad's account only, not joint, I take it there would be no issue with closing the account as it is? What if I took out the rest of the overdraft? After all this is money I have put into the account to pay outstanding bills.What if I extended the overdraft to £2000, took out the remainder and then closed it, is that bordering on criminal?The account is with Lloyds, my account is with a different bank. Any advice would be gladly accepted.0
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MadefromClay said:Sorry to piggy back on another poster's question but I am in a somewhat similar position and would also like some advice.My father passed away 3 weeks ago and was £1250 overdrawn at the time of his passing. Since then I have put money in (over £1000) and then used most of that for the funeral deposit, currently it is £935 overdrawn.This was my dad's account only, not joint, I take it there would be no issue with closing the account as it is? What if I took out the rest of the overdraft? After all this is money I have put into the account to pay outstanding bills.What if I extended the overdraft to £2000, took out the remainder and then closed it, is that bordering on criminal?The account is with Lloyds, my account is with a different bank. Any advice would be gladly accepted.How are you using his bank account? As you have already mentioned it is not a joint account with yourself, if you had power of attorney for your father or third party signing rights then these would have ended upon the death of your father.STOP using the account now. Especially if you had neither POA or third party set up on the account and are just using the account pretending to be him, this is fraud that you are committing. Taking out the rest of the overdraft is a massive no no.Someone will need to let Lloyds know about the death of your father to freeze/close and would need to see the death certificate in order to do this. And it’s not going to look very good if the account has been used especially in the way you are describing after the date of death on the certificate.5
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MadefromClay said:Sorry to piggy back on another poster's question but I am in a somewhat similar position and would also like some advice.My father passed away 3 weeks ago and was £1250 overdrawn at the time of his passing. Since then I have put money in (over £1000) and then used most of that for the funeral deposit, currently it is £935 overdrawn.This was my dad's account only, not joint, I take it there would be no issue with closing the account as it is? What if I took out the rest of the overdraft? After all this is money I have put into the account to pay outstanding bills.What if I extended the overdraft to £2000, took out the remainder and then closed it, is that bordering on criminal?The account is with Lloyds, my account is with a different bank. Any advice would be gladly accepted.2
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mab3000 said:MadefromClay said:Sorry to piggy back on another poster's question but I am in a somewhat similar position and would also like some advice.My father passed away 3 weeks ago and was £1250 overdrawn at the time of his passing. Since then I have put money in (over £1000) and then used most of that for the funeral deposit, currently it is £935 overdrawn.This was my dad's account only, not joint, I take it there would be no issue with closing the account as it is? What if I took out the rest of the overdraft? After all this is money I have put into the account to pay outstanding bills.What if I extended the overdraft to £2000, took out the remainder and then closed it, is that bordering on criminal?The account is with Lloyds, my account is with a different bank. Any advice would be gladly accepted.How are you using his bank account? As you have already mentioned it is not a joint account with yourself, if you had power of attorney for your father or third party signing rights then these would have ended upon the death of your father.STOP using the account now. Especially if you had neither POA or third party set up on the account and are just using the account pretending to be him, this is fraud that you are committing. Taking out the rest of the overdraft is a massive no no.Someone will need to let Lloyds know about the death of your father to freeze/close and would need to see the death certificate in order to do this. And it’s not going to look very good if the account has been used especially in the way you are describing after the date of death on the certificate.Thank you.It may sound worse than it is. When my dad went into hospital, I checked his account and saw that it was £1250 overdrawn, as bills etc. still needed to be taken care of, I organised £1000 to go in from a holiday refund, and then his pension went in automatically putting it in plus figures for the first time in a long time. He then passed away. Since then that £1000 paid the funeral deposit and normal bills have gone out. I have now transferred all the bills to my account and cancelled any others. I think on Monday I will call the bereavement team and ask for some advice, without giving any identifying information as of yet. I can see why some people just leave accounts to collect dust, for poor/financially fraught families it is more hassle than it is worth.
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I appreciate what you are saying, but it does not change anything that I have said above. The funeral deposit should not have been paid from an overdraft from an account that should be frozen, unfortunately the holiday refund was spent when it cleared the overdraft.
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mab3000 said:I appreciate what you are saying, but it does not change anything that I have said above. The funeral deposit should not have been paid from an overdraft from an account that should be frozen, unfortunately the holiday refund was spent when it cleared the overdraft.
Fair enough. I am hoping to get a payment in from the government to cover the cost of the funeral (or most of it). So as soon as that comes in I will pay off the overdraft and close the account just to avoid any further stress. I will still call the bereavement team on Monday to see what they say though. Thanks for your advice.
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Why are other bills still being taken from the account? You need to be contacting all of these companies about your father's passing.1
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mab3000 said:MadefromClay said:Sorry to piggy back on another poster's question but I am in a somewhat similar position and would also like some advice.My father passed away 3 weeks ago and was £1250 overdrawn at the time of his passing. Since then I have put money in (over £1000) and then used most of that for the funeral deposit, currently it is £935 overdrawn.This was my dad's account only, not joint, I take it there would be no issue with closing the account as it is? What if I took out the rest of the overdraft? After all this is money I have put into the account to pay outstanding bills.What if I extended the overdraft to £2000, took out the remainder and then closed it, is that bordering on criminal?The account is with Lloyds, my account is with a different bank. Any advice would be gladly accepted.How are you using his bank account? As you have already mentioned it is not a joint account with yourself, if you had power of attorney for your father or third party signing rights then these would have ended upon the death of your father.STOP using the account now. Especially if you had neither POA or third party set up on the account and are just using the account pretending to be him, this is fraud that you are committing. Taking out the rest of the overdraft is a massive no no.Someone will need to let Lloyds know about the death of your father to freeze/close and would need to see the death certificate in order to do this. And it’s not going to look very good if the account has been used especially in the way you are describing after the date of death on the certificate.
You really should not be doing anything with you fathers account.
Let bank know, they will deal with bills going out etc. Do not worry about his O/DLife in the slow lane0
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