Bank bereavement notification form

MusicalMan

Our solicitor who is handling the probate process has asked us as executors to sign a bereavement notification form to apparently authorise them to close the account. On that form is a Personal Indemnity clause. It reads:

"I/we give this indemnity in my/our capacity as customer representative(s) acting on behalf of the above maned deceased. I/we will be responsible for any losses and/or costs s which Santander UK plc may incur as a result of (i) acting on my/our instructions in relation to any payment or transfer of monies; or (ii) another person being entitled to a share of any monies paid or transferred. I/we agree to reimburse Santander UK plc for any losses or costs incurred."

What are the implications of that clause? Our solicitor has previously told us in writing that we will not at any time be liable for any costs associated with the Probate process. This clause appears to suggest otherwise. 

p00hsticks

Banks these days are often prepared to hand out quite large sums of money following a death without probate / letters of administration. Although they will want proof of id for who is closing the account they aren't in a position to know if they are the ones actually entitled to all of the money in the account, especially if there is no will and so no named executor. 

From the sound of it this is a standard form from the bank. That clause is there to protect them if they give the money to one person and it turns out that it should have gone to another - for example if there are two children of the deceased and one goes in to close the account and take the money without the others knowledge and the other child then complains to the bank.

As in your case the money is presumably going to be handed over to the solicitor to distribute according to the will (or rules of intestacy) then it won't affect you, so just sign. 

doodling

Hi,

If you are the exexutor and have probate then you don't need to sign that form - it is your money and they shouldn't be placing arbitrary barriers to paying it to you.

If you don't have probate then the bank is being reasonable in asking you to sign the form - you don't have probate so there is nothing definitively stating that you are the right person to receive the money.  They want to be able to come after you if probate is awarded to someone else and it they end up having to pay out to them.

In practise, unless there is a risk that someone will get probate then there is no real risk in signing it.

Note that by signing, you are personally accepting liability to pay the bank back if someone else gets probate and asks the bank for the money.