Can next of kin withdraw money from deceased persons bank account

The death of a loved one can be a difficult experience on an emotional level, and the stress can be significantly increased by concerns over finances. However, before you do so, you need to make sure that you are aware of your legal responsibilities. It is tempting to use the money that has been left behind to cover bills.

In this difficult time, this article will bring clarity and assistance to those who are asking about the legality of accessing money that has been left in the bank account of a deceased person.

What Happens to a Bank Account When Someone Dies?

When someone dies, banks are often notified as soon as possible, either by the family, the executor, or through official documents. After being informed, the bank will:

• Freeze the deceased person’s bank account.
• Stop direct debits and standing orders.
• Require legal documents before releasing any money.

By doing so, it is ensured that the funds can only be accessed by an authorised executor or administrator who holds the necessary letters of administration.

Can Next of Kin Withdraw Money to Cover Funeral Costs?

A lot of people worry about the cost of the funeral if the deceased person’s funds are tied up. To pay for funeral expenses, a majority of banks in Scotland will release cash straight from the account of the deceased person. 

However, this doesn’t mean that the next of kin are allowed to withdraw money without restriction; rather, the bank will pay the funeral director’s invoice immediately, using the funds from the account of the deceased directly.

When there is no will, access is often allowed to a designated administrator through the legal procedure of getting confirmation (probate in England, confirmation in Scotland). If there is no will, access is typically granted to the executor specified in the will.

What Happens to a Joint Bank Account When Someone Dies?

What happens next is determined by the way in which the account was established, in the case that the deceased was a joint account holder.

Joint accounts with survivorship rights

In most cases, all of the funds in the account are instantly accessible to the account holder who has survived.

Joint accounts without survivorship rights

The deceased person’s share may be included in the estate, which will then be subject to confirmation.

It is important to review the specific provisions of the joint account in order to have an understanding of your rights for the account.

The Role of the Executor After Someone Has Died

The executor, who is the person who has been legally assigned to deal with the estate, is the only person who has the power to access and withdraw funds from the bank accounts of the deceased. Executors can be appointed by the court in case there is no will, or they can be nominated in a will, and in such cases, letters of administration may be required.

In Scotland, the executor is required to submit an application for confirmation, which is equivalent to the process of probate in England and Wales. This provides them with the mandate to:

• Access bank accounts.
• Pay debts.
• Settle taxes, including any applicable inheritance tax.
• Distribute funds to beneficiaries.

Key Takeaways About Bank Accounts When Someone Dies

Next of kin usually cannot take money out of a dead person’s bank account unless they have the legal right to do so.

However, if there are enough funds in the account, most banks will let the funeral costs be paid directly from the account. If survivorship rights are in place, the shared bank account will go to the person whose rights they are replacing. The surviving account holder can access the funds right away. If they don’t, the deceased’s half goes to the estate, and the executor must handle the distribution according to the rules of intestacy. An executor is the person who is legally responsible for asking for confirmation, administering the estate, and ensuring that funds are distributed appropriately, including any inheritance tax obligations. 

How SGT Law Firm Can Help

It can be hard to deal with the financial and legal problems that come up when someone you love dies. We at SGT Law Firm understand how hard this is. Our experienced lawyers in Glasgow can help you with the Confirmation process and make sure that everything is done in a way that is fair and legal in Scotland.

Contact us today for a free initial consultation and let us help you take the right steps forward in managing your financial affairs.