Legally Required To Freeze Father's Accounts After Death?

woodbine66

My father is terminally ill at 91 years old in hospital. He is very traditional and controlled all finances/money between him and my mother. All his money is in his sole name and my mother has no money of her own in her name.

When he passes away, is it necessary to tell the banks to freeze his accounts? Freezing accounts would mean that my mother has no funds for bills, food, etc in the months before probate is granted.

I do have some access to my father's accounts since his illness started in January through internet banking. So I could access his funds so that my mother isn't destitute before probate. Of course, if accounts must be frozen - I can't access his accounts any more.

Can anyone tell me the legal situation please. N.B. All of my father's assets and cash will pass to my mother following his death.

p00hsticks

Yes, you need to notify the banks, but depending on the balances involved they may not insist on probate before releasing the contents to the executor (whoever that is) - evidence of the will and proof of ID may be enough. 
Check the websites of the individual financial institutions to see what their limits are. 

Marcon

woodbine66 said:

My father is terminally ill at 91 years old in hospital. He is very traditional and controlled all finances/money between him and my mother. All his money is in his sole name and my mother has no money of her own in her name.

When he passes away, is it necessary to tell the banks to freeze his accounts? Freezing accounts would mean that my mother has no funds for bills, food, etc in the months before probate is granted.

I do have some access to my father's accounts since his illness started in January through internet banking. So I could access his funds so that my mother isn't destitute before probate. Of course, if accounts must be frozen - I can't access his accounts any more.

Can anyone tell me the legal situation please. N.B. All of my father's assets and cash will pass to my mother following his death.

Have you asked the banks if the accounts can become joint accounts, assuming both your father and mother have capacity to take the necessary actions - or indeed set up a new joint account and transfer all funds into that?

bobster2

woodbine66 said:

My father is terminally ill at 91 years old in hospital. He is very traditional and controlled all finances/money between him and my mother. All his money is in his sole name and my mother has no money of her own in her name.

When he passes away, is it necessary to tell the banks to freeze his accounts? Freezing accounts would mean that my mother has no funds for bills, food, etc in the months before probate is granted.

I do have some access to my father's accounts since his illness started in January through internet banking. So I could access his funds so that my mother isn't destitute before probate. Of course, if accounts must be frozen - I can't access his accounts any more.

Can anyone tell me the legal situation please. N.B. All of my father's assets and cash will pass to my mother following his death.

They would need to be frozen.

Then some banks may allow you access to funds (as personal representative / executor) prior to probate - but this could still take a while (e.g. weeks).

If your father has capacity at the moment  he should urgently consider either making one or more of these accounts a joint account. Or at least making a gift of funds to his wife - to see her through the period prior to probate.

Keep_pedalling

Banks have quite high levels they will pay out without probate so unless he has large deposits she should be able to gain access quite quickly.

What is happening to your mother’s pension payments, surely they are not going his account?

I think your father is controlling rather than traditional, but there are still quite a few of them out there. Do you have financial power of attorney of eith of your parents? Is your father likely to be coming home again?

Brie

Can your mom open her own account (joint with you perhaps?) and money start moving into that?

CalvinHobs

It is standard practice for banks to freeze accounts when notified of the death of an account holder. Joint accounts are the exception - the bank will transfer a joint account into the name of the survivor once they have seen the required documents (see below).

Many banks and building societies have a probate limit of £50,000 - this applies to the total of all accounts held with the provider by the deceased. Some have a lower probate limit, e.g. Metro Bank is £25,000 and NS&I is £5,000.

Based on my recent experience of administering my late partner's estate...

If the total held with a bank or building society is below the probate limit, they will request a copy of the deceased's death certificate and their will - plus proof of ID from the personal representative. As long as the Coroner's office is not involved, a death certificate can be obtained fairly quickly. So, potentially, an account can be "unfrozen" within a few weeks of it being frozen.

In the case of my late partner, the funds from one of her accounts was released to her estate only yesterday - 9 months after her death. This account was over the probate limit, there was an Inquest, IHT had to be paid to HMRC before probate could be applied for. I did everything as promptly as I could, yet it still took 9 months to reach this point.

RAS

Not sure what timescale you are working with?

Start by getting mum a new bank account, in her sole name, or with you as an additional signatory. If she receives any income at all, including state pension, get that paid in there. She's going to need it going forward anyway.

But she's unlikely to have a current bill at her address, so check with the providers what else they will accept. Some will consider a bus pass for example. Make sure she is on the electoral roll.

If you can't get a bank account consider a instant savings account instead, in the short term.

Presumably you have some idea of dad's income, expenditure, savings and debts now? Is he roughly solvent? Check how much is in those accounts if possible, does he have statements sent to the house? What are the limits which his banks will pay without probate?

I'd suggest that you start paying mum's basic living costs from dad's into that new account, so food, clothing etc, and change at least one utility account into her name. That way her short-term needs are met and she can get used to the new arrangements, if she's going to live independently going forward,

Funeral costs will be paid by his main bank account if the funeral director bills them. You may need to think about how much he actually has as assets before deciding whether to pay for extras or not.

I'd also take out a small amount of cash now, in discussion with dad if possible and with mum, that can help tied her over when he dies.

Utilities will delay collection until probate is granted, or you've had a chance to sort out the estate. You need to inform them of his death promptly, but realistically pay them once you've garnered in the assets from his old accounts.

tls123

Don’t assume because you have access to your dads accounts accounts now it will continue if he passes on notification of death banks usually remove internet access and follow usual deceased procedures Agree with changing any day to day accounts to joint to allow your mum to pay the bills. She also should have her own account for any benefits/ pension to be paid into. 

SiliconChip

When you say you have access to your father's accounts is that officially arranged, through a financial LPA or a third party agreement, or unoffically because you know (and maybe set up for him) his internet banking details? If it's the latter then you need to be careful what you do with is money in case someone (possibly the executor if that's not you, or the bank if they suspect unauthorised access) decides to investigate, which could delay further the transfer of funds to your mother after your father dies.

sheramber

Does your mother not receive a pension which be moved now, to be paid into an account in her name?