'I learned that the hard way': Expert warns never tell the bank when a loved one has passed away. Here’s why (2024)
Trending
‘Your bank is not your friend.’
Parks Kugle
Losing a loved one can be one of the hardest experiences in your life, and one expert says it’s best not to add stress to the occasion by prematurely informing the bank that your loved one has passed.
Amy Devine, a social worker who goes by @yourhospicesocialworker on TikTok, explains in a video what steps you should take when telling the bank a loved one has passed away so the bank does not complicate the grieving process. The video has been viewed over 695,000 times as of publication.
“When I say, ‘Don’t tell the bank,’ I don’t mean don’t ever tell the bank. I just mean don’t tell the bank yet,” Amy explains in the clip. “Give yourself some time to grieve.”
“You can use this time to start going through paperwork, bank statements, maybe gathering information on what accounts were getting automatically debited,” she continues, “and making arrangements to notify those people and setting up alternative payments. While you’re doing this, any automatic payments are continuing to go out of the account, and any premiums can be deposited.”
Amy explains that waiting to inform the bank allows a family member time to gather all relevant information, including details on life insurance policies and electricity and utility bills. After notifying the bank, the account will be frozen, meaning nothing can be taken out or deposited. Amy says you will receive your loved one’s death certificate within four to six weeks. She advises showing the certificate to the bank so you can work on accessing the funds.
“Hopefully, they have set up some kind of protection on their account, like a payable on death, where you can access those funds,” she says. “Or, maybe they had a revocable trust in place, and you can show those trust documents.”
“Another thing you can do to assist with the bank issue is add a joint signer,” she continues. “If your loved one passes away and there’s a joint signer on the account, that joint signer can still manage affairs through that account.”
Though many commenters agreed with Devine’s advice, several others shared that banks can be notified of an account holder’s death in other ways.
“Banks are notified anyway…they knew within about ten days,” one viewer said.
“Thing is, social security will also notify the bank as well, even if you don’t,” a second remarked.
“When I worked at a bank we read the obituary every morning and froze accts,” another shared.
According to Bankrate, one issue is that funeral homes routinely inform the Social Security Administration that your loved one passed away. This is to ensure that Social Security checks stop being issued. Once the bank is notified, accounts will be frozen.
The outlet also reports that there are ways to avoid the complications. The easiest way is to have a joint account signer. The loved one can also give a family member power of attorney to allow for preparation. Another way is to consolidate accounts to make it easier to move funds. Finally, if you are gathering information about a deceased relative’s accounts, you should check the state’s unclaimed money database. All banks have to surrender unused accounts to the state after a period set by local laws.
The Daily Dot reached out to Devine via TikTok comments for further information.
Amy explains that waiting to inform the bank allows a family member time to gather all relevant information, including details on life insurance policies and electricity and utility bills. After notifying the bank, the account will be frozen, meaning nothing can be taken out or deposited.
Once the bank has been notified of the death, the account will be frozen. If there are any direct debits or standing orders being paid from the account – for example, utility bills – then you should notify the companies first so that they are aware of why the payments have stopped.
You should also let the deceased person's bank know. This means that the bank can stop any communications, as well as freezing the account – and stopping any standing orders or direct debits. When you've notified the bank, they can let you know what the next steps will be and which other documentation they might need.
If you're the joint owner of the deceased person's bank account, you should be able to withdraw money right away. Otherwise, you typically must supply documents showing that you legally have access to the account. Documents a bank might request include: Government-issued ID, such as your driver's license or passport.
Key takeaways. After someone dies, a sole-owned bank account may go to a named beneficiary or be handled by the executor of the estate. Joint accounts typically have automatic rights of survivorship, but it's still important to check with your bank to ensure smooth access to funds.
It is settled during probate, wherein the court oversees the distribution of assets according to the deceased's will or special laws in the absence of a will. The bank account will be frozen until the probate process is complete.
Yes, you can technically send money into a deceased person's bank account, if the account is still unfrozen. This is because banks freeze a person's bank account once they are notified and provided proof of their death. Nonetheless, sending money into a deceased person's bank account is not recommended.
The next of kin must notify their banks of the death when an account holder dies. This is usually done by delivering a certified copy of the death certificate to the bank, along with the deceased's name and Social Security number, bank account numbers, and other information.
Each bank has its own policy but most will release funds held in the deceased's account within two weeks of being provided with the documentation they require. Many will release a sum of money prior to the grant to deal with essential expenses such as funeral costs.
In conclusion, it's a crime to use a dead relative's payment cards, even if they're no longer able to use them. Anyone convicted of using a card to make fraudulent purchases will face years of imprisonment for deceit, not to mention an identity theft offense will appear on their criminal record.
Couples may also have joint bank or building society accounts. If one dies, all the money will go to the surviving partner without the need for probate or letters of administration. The bank may need the see the death certificate in order to transfer the money to the other joint owner.
The bank needs to be notified of the accountholder's passing as soon as possible, as any bank accounts of the deceased remain active until the bank is notified of the death. This typically entails providing the original Death Certificate for verification purposes and the Will, if one is available.
Most joint bank or credit union accounts are held with “rights of survivorship.” This means that when one account owner dies, the money passes to the surviving owner, or equally to the rest of the owners if there are multiple people on the account.
An executor can transfer money from a decedent's bank account to an estate account in the name of the executor, but they cannot withdraw cash from the account or transfer it into their own bank account.
The account will also fall under the authority of the executor or administrator, who can use its funds to pay valid creditor claims before distributing the remaining assets to the beneficiaries and/or heirs who are supposed to inherit them.
If a beneficiary requests access to financial institution statements and the executor refuses to provide them, the beneficiary can take legal action. They can follow the court for an order compelling the executor to reveal the requested information.
After your death, the beneficiary has a right to collect any money remaining in your account. They need to go to the bank with proper identification. They must also bring a certified copy of the death certificate. The bank will have a copy of the form you filled out naming them the beneficiary.
Introduction: My name is Jeremiah Abshire, I am a outstanding, kind, clever, hilarious, curious, hilarious, outstanding person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.