We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

what happens to an overdraft facility if one partner on a joint account dies?

2»

Comments

  • colsten said:
    colsten 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.
    Looking at the T&Cs, I don't think that would be a given. Though they would probably want to know why it took 3 years to get notified. So it might be best to 'forget' telling them for a bit longer, until you have sorted out how you would settle the O/D.

    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?
    If the account was in credit I agree - but it is a banking rule that an overdrawn joint account will be frozen to crystalise the debt.
    Sorry can't remember the case law.
    Sorry, there is no ‘banking rule’ or ‘case law’ for this. The rules that apply are laid down in the T&Cs, a link to which I have posted earlier. 
    Sorry but you are wrong on this 100%
  • colsten
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    colsten said:
    colsten 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.
    Looking at the T&Cs, I don't think that would be a given. Though they would probably want to know why it took 3 years to get notified. So it might be best to 'forget' telling them for a bit longer, until you have sorted out how you would settle the O/D.

    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?
    If the account was in credit I agree - but it is a banking rule that an overdrawn joint account will be frozen to crystalise the debt.
    Sorry can't remember the case law.
    Sorry, there is no ‘banking rule’ or ‘case law’ for this. The rules that apply are laid down in the T&Cs, a link to which I have posted earlier. 
    Sorry but you are wrong on this 100%
     Can you post the link to that 'banking rule' please, and explain where the IF T&Cs breach that 'rule'.
  • 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.

  • colsten
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    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.

    Sounds like a great candidate for a First Party Fraud marker on CIFAS.
  • mab3000 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.

    Sorry to hear about the loss of your father. 

    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.

  • mab3000
    mab3000 Posts: 532 Forumite
    Sixth Anniversary 500 Posts Name Dropper
    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. 
  • 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.
  • penners324
    penners324 Posts: 3,545 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Why are other bills still being taken from the account? You need to be contacting all of these companies about your father's passing.
  • born_again
    born_again Posts: 21,412 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    mab3000 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.

    Sorry to hear about the loss of your father. 

    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. 
    Sorry for the loss.

    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/D
    Life in the slow lane
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.5K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245.1K Work, Benefits & Business
  • 600.7K Mortgages, Homes & Bills
  • 177.4K Life & Family
  • 258.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.