Lack of interest on accounts while awaiting probate.

Bertymel

I am dealing with my late uncles estate and waiting for probate which takes 16 weeks minimum.
His Building society has refused to transfer money in his current account that is receiving no interest to his savings account that would accrue interest. The Building society have said that their membership rights stops when their death is registered. That means any money left in their accounts is not eligible for any interest. I feel this is unfair and would like the know people's views on this.

Keep_pedalling

Which building society and how much in total with that organisation?

I ask because you may be able to get them to release the money before you get probate if it is below their self imposed limits. Even if that is not the case you may be able to get the funeral director to have any funeral costs paid from that current account.

All banks will freeze accounts after the holders death so non interest paying accounts will remain that way until released to the executors.

tigermark119

When someone passes and they have open bank/ building society accounts, those accounts are immediately frozen (depending on the amount in the accounts), until Grant Of Probate issued. It seems to vary from Bank to Bank as to what they are prepared to do with the accounts until Grant Of Probate. Some will only release funds for funeral and probate application costs. As to interest, it maybe the case that until Grant Of Probate is received, as Executor you have no authority to move the funds from one account to another? What I can say, from personal experience, is that my Father’s account must be gaining some interest as when the BS provided a statement for Probate valuation purposes, the figure included an estimate for interest earned since the time of death. So I can’t quite understand the statement that any money left in the accounts is not eligible for any interest?? Hope this is of some help to you and good luck. 

SiliconChip

tigermark119 said:

So I can’t quite understand the statement that any money left in the accounts is not eligible for any interest??

Because in the OP's case the money is in a current account that doesn't pay any interest.