Bank account when someone dies: frozen instantly, probate threshold varies £5k–£50k

When someone dies, their bank accounts need dealing with quickly – other organisations will ask whether the bank has been notified, and money in the estate needs to be preserved. This guide explains what happens to bank accounts in the UK, whether they were held alone or jointly, how to notify banks, and when you might need probate before any funds can be released.

You do not need to know everything immediately. The most important step in the first few days is simply telling the bank the person has died. Everything else can follow.

The short answer

For sole accounts, the money forms part of the estate. It cannot be withdrawn until the bank is satisfied that the right person has the legal authority to act – either through a grant of probate, or a simpler claim process for smaller amounts.

For joint accounts, the funds almost always pass automatically to the surviving account holder under the right of survivorship. The account is not frozen. Probate is not normally required for the joint balance.

Direct debits and standing orders from a sole account should be cancelled or suspended by the bank on notification. Notify early – this preserves estate funds, prevents further direct debits leaving the account, and starts the formal process. If the deceased held a National Lottery direct debit subscription, see our guide to notifying the National Lottery when someone dies – this covers cancellation and how to claim any winnings held in the account.

What to prepare before you contact the bank

You do not need everything ready before making the initial call, but having the following to hand will make the first conversation smoother and avoid a follow-up call.

For the initial notification (day one or two):

• The deceased’s full name, date of birth, and address
• The date of death
• Account number or sort code if known (not essential – the bank can look it up)
• Your name, address, and relationship to the deceased

For the follow-up (account closure and release of funds):

• Original death certificate, or a certified copy (check what the bank will accept – some require the original, which they return)
• Your proof of identity – passport or photocard driving licence
• If there is a will: a copy of the will and, where probate is required, the grant of probate
• If there is no will: letters of administration once obtained
• If requesting early release for funeral costs: the funeral invoice on headed paper from the funeral director

Most banks will send you a written list of next steps and a reference number after the initial notification. This list will confirm exactly what they need from you.

What happens to a sole bank account when someone dies

When the bank is informed of the death, a sole account is frozen. This means no money can be withdrawn, and no new payments can be set up. Existing direct debits and standing orders will be cancelled. Any payments that arrive after the death – such as a final salary payment or pension instalment – will be credited but not accessible until the account is released.

This is not a permanent state. It is a holding position while the bank establishes who has the legal authority to deal with the account.

What “frozen” means in practice

A frozen account is not completely inert. Understanding what can and cannot happen helps avoid confusion and prevents avoidable problems:

What stops immediately:

• Cash withdrawals (from branch, ATM, or online transfer) – not permitted by anyone, including family members and executors
• Debit card payments
• New direct debits or standing orders being set up
• New cheques being issued

What continues (for a short period):

• Incoming bank transfers and BACS credits – payments already in transit when the death occurred will land in the account and be held there
• A salary payment or pension instalment in the pipeline at the date of death will typically credit the account in the usual cycle and be preserved for the estate

What must be reclaimed:

• State Pension payments and DWP benefits (Universal Credit, Pension Credit, Employment Support Allowance) – these stop from the week of death. Any payment made after the date of death is an overpayment and must be returned. The bank, once notified, will liaise with DWP over reclaiming these credits. The DWP will issue a repayment demand to the estate.
• Similarly, any HMRC tax credit payments made after death must be repaid

What the bank cannot do automatically:

• Notify other organisations (mortgage lenders, HMRC, utility providers) – these must be contacted separately
• Cancel card-on-file or subscription payments that do not run through direct debit – these require you to cancel with the merchant directly

Recovering payments made after death

If a direct debit was taken after the bank had been notified of the death (and therefore after the account should have been frozen), this is an error by the bank and you can claim a full and immediate refund under the Direct Debit Guarantee. Contact the bank, not the merchant, to make this claim.

If a direct debit was taken before the bank was notified – meaning the instruction was still valid at the time – it is not technically an error. You may still be able to recover the money from the merchant, particularly if the payment covered a service the deceased will not use (for example, a broadband subscription), but the bank itself is not liable to refund it under the guarantee.

Standing orders are harder to recover once paid, because they are push payments authorised by the account holder in advance. If standing orders left the account after the date of death but before notification, contact the bank – they can attempt a recall through the banking system, though it is not guaranteed.

Notify the bank as early as possible: this preserves estate funds, prevents further direct debits leaving the account, and starts the formal process. A few days’ delay rarely causes lasting problems, but weeks of inaction can allow further payments to leave the account that then need recovering.

The estate and the personal representative

Everything the person owned – their money, property, possessions, and investments – forms part of their estate. So do their debts. A personal representative (the executor named in the will, or an administrator appointed if there is no will) is responsible for gathering in the estate, paying any debts, and distributing what remains to beneficiaries.

The bank needs to be satisfied that the person claiming access is the correct personal representative before releasing any funds.

Do you need probate?

This depends on the bank and the balance.

Most UK banks and building societies set a threshold below which they will release funds without a grant of probate, using a simpler process – typically a statutory declaration or small estates indemnity form, alongside a death certificate and proof of identity.

Above the threshold, a grant of probate (or letters of administration if there is no will) is normally required. This is a legal document issued by the Probate Registry that confirms the executor’s or administrator’s authority to deal with the estate.

Based on the published policies of major UK banks and building societies (verified June 2026):

These thresholds apply to the total balance across all sole accounts at that institution, not each account individually. Note that NS&I’s £5,000 threshold is far lower than the major banks – see what happens to Premium Bonds when someone dies for detail. Starling (£10,000) and Revolut (£5,000) set notably lower thresholds than high-street banks, which means probate is required for relatively modest balances at these providers.

Thresholds are commercial decisions set independently by each bank and can change. The FCA conducted a multi-firm review of bereavement practices in 2025 and found that banks’ procedures were broadly improving, but some inconsistencies in staff knowledge remain. If you are unsure, contact the bank’s bereavement team – they will confirm their current threshold and process.

For more on what probate involves and how long it takes, see our guide: How long does probate take?

What the bank needs to release funds – the probate process in practice

Where probate is required, the bank will not act on your request until you can provide the formal grant. The process of providing that to the bank is straightforward:

1. Obtain the grant of probate (or letters of administration) from the Probate Registry
2. Send the original grant, or a sealed copy, to the bank’s bereavement team – most banks accept a sealed copy rather than the original, which they return after taking a note of the reference
3. The bank verifies the grant against their internal records and confirms the date-of-death balance
4. You complete any further forms the bank requires (signature authority, account closure instruction)
5. The bank transfers the funds to the estate account you nominate

For large or complex estates with multiple accounts at different banks, some solicitors arrange for certified copies of the grant to be sent simultaneously to all institutions, rather than waiting for each bank to finish before sending to the next.

Does a savings account earn interest while frozen?

Yes. A savings account continues to accrue interest even while frozen during probate. The interest forms part of the estate and will be included in the final balance when the account is eventually closed.

This is worth noting where the estate is large and probate takes many months: the frozen balance is not inert money. For current accounts in credit, most banks do not pay interest, so the balance remains static. But savings accounts – particularly fixed-rate bonds or cash ISAs – may continue earning until closure.

Interest earned after the date of death is treated differently for tax purposes. See the section on estate income tax below.

Paying for the funeral

Most banks will release funds directly to pay funeral costs, even before probate is granted, provided you can supply a funeral invoice on headed paper. This is a standard practice – you do not need to cover the funeral costs personally and wait for reimbursement from the estate, though some executors choose to do this. Contact the bank’s bereavement team to arrange it.

If the deceased had very little in their accounts and you are on a means-tested benefit (such as Universal Credit or Pension Credit), you may also qualify for Funeral Expenses Payment – a government grant covering burial or cremation fees plus up to £1,000 toward other costs.

What happens to direct debits and standing orders?

Once notified, the bank will cancel all direct debits and standing orders from a sole account. If any have already been paid after the date of death – for example, a mortgage payment that went out a day or two later – the bank will usually be able to recall these, but contact them promptly. If there is a mortgage on the property, notify the mortgage lender separately – the bank cannot do this on your behalf. See what happens to a mortgage when someone dies.

Utility companies, subscription services, and others may not be notified automatically. You will need to contact them separately – the what to do when someone dies section has a checklist of organisations to notify, with individual guides for Barclays, NatWest, Lloyds, Nationwide, HSBC, Santander, Halifax, TSB, Virgin Money, Monzo, and Co-op Bank.

For a full guide to which direct debits to cancel urgently, which may need to continue, and how to reclaim payments taken after the death, see what happens to direct debits when someone dies.

Estate income tax on bank interest after death

This is one of the least-understood tax issues in estate administration, and one where many personal representatives do not realise they have an obligation.

Why bank interest after death is taxed differently

Interest credited to a savings account before the date of death is treated as the deceased’s income and is reported on their final personal tax return. Interest credited after the date of death is a different matter: it is treated as income of the estate during the administration period, and the personal representative may need to account to HMRC for tax on it.

Estates do not benefit from the personal allowance that individuals receive. They also do not benefit from the Personal Savings Allowance (which allows individuals to receive up to £500–£1,000 of savings interest tax-free). This means all estate interest income is potentially taxable.

The rate and the de minimis threshold

During the administration period, estates pay income tax at the basic rate of 20% on bank and savings interest. Dividend income is taxed at 8.75%.

However, from 6 April 2024, HMRC introduced a de minimis threshold: if total estate income of any type is less than £500 in a tax year, the estate has no income tax liability and no reporting requirement for that year. This is an all-or-nothing test – if estate income exceeds £500 in a tax year, all of that year’s income becomes taxable, not just the amount above £500.

For most straightforward estates – a current account earning no interest and a modest savings account frozen for a few months during probate – the threshold means no tax arises. For larger estates, or where probate takes more than one tax year to complete, professional advice is worth obtaining.

Who pays and when

The personal representative (executor or administrator) is responsible for accounting to HMRC for income tax during the administration period. For simple estates, HMRC generally accepts an informal settlement by letter rather than requiring a formal self-assessment return. Complex estates – typically those where tax due exceeds £10,000, where assets sold exceed £500,000, or where the gross estate exceeds £2.5m – require formal filing.

If any tax was deducted at source by the bank during the administration period (less common since the withdrawal of the standard withholding tax regime), the estate can reclaim tax overpaid or pay any shortfall.

Form R185 (Estate Income) and beneficiaries

When the administration period ends and funds are distributed to beneficiaries, the personal representative should issue each beneficiary with a form R185 (Estate Income) if the estate had any taxable income during administration. This form shows the amount distributed and the income tax treated as paid on it. Beneficiaries use the R185 to report their share of estate income on their own tax return. Where tax was paid at the estate level, higher or additional rate taxpayers may have further tax to pay; basic rate taxpayers have no further liability.

The current version of R185 (Estate Income) was updated in April 2026 and is available from the GOV.UK inheritance tax forms page.

For most estates where the bank interest is modest and probate completes within a single tax year, the practical impact is minimal. Where probate is prolonged – common with complex estates or contested wills – the accumulated interest can become significant and HMRC reporting becomes more important.

What happens to a joint bank account when someone dies

Joint bank accounts in England, Wales, and Northern Ireland are almost always held as joint tenants – meaning both holders have equal and undivided rights to the entire balance. When one holder dies, their share passes automatically to the surviving holder by the right of survivorship. This happens regardless of what the deceased’s will says. Probate is not normally required for the joint balance.

The account is not frozen. The surviving account holder can continue to use it, make payments, and access funds immediately. The bank will update the account to a sole account in the survivor’s name, usually on presentation of a death certificate.

For a dedicated guide – covering overdrafts, inheritance tax treatment, Scotland’s different rules, and a step-by-step process – see what happens to a joint bank account when someone dies.

Does a will override the joint account?

No. If a will says “I leave my half of the joint account to my children”, this cannot override the right of survivorship. The surviving account holder inherits the balance, and the will’s instruction on that point has no effect. This is a common misunderstanding and occasionally a source of family dispute – the legal position is clear.

Does inheritance tax apply to joint accounts?

The funds pass free of probate, but they are not automatically free of inheritance tax. Joint account balances that pass to a surviving spouse or civil partner are exempt from IHT (under the spousal exemption). If they pass to any other person – even a joint tenant who is not a spouse – the deceased’s share of the joint account is included when valuing their estate for IHT purposes. If the total estate exceeds the nil-rate band (£325,000 as of 2026, or more with the residence nil-rate band and any transferred allowance), IHT at 40% may be due on the excess. HMRC will write to the estate if IHT is owed. For a full guide to inheritance tax thresholds and how they work, see the GOV.UK inheritance tax overview.

Tenants in common (rare)

In very limited cases, a joint bank account may be structured as tenants in common, where each holder owns a specific share. This is unusual for standard current and savings accounts but can occur through specific legal arrangements. If this applies, the deceased’s share does not automatically pass to the survivor and would form part of the estate.

How to notify the bank

There are three main routes for notifying banks when someone dies.

1. The Death Notification Service (recommended if the deceased banked at multiple institutions)

The Death Notification Service (deathnotificationservice.co.uk) is a free service run by the UK banking industry. It lets you notify multiple financial institutions simultaneously through a single online form. You do not need to create an account to use it, though registering allows you to track responses.

After you submit, member organisations will contact you within 10 working days if the deceased held an account with them.

Current members include Barclays, HSBC, Lloyds Bank, NatWest, Nationwide, Santander, Halifax, Bank of Scotland, First Direct, Monzo, Chase, M&S Bank, and others – covering the majority of the UK current account market.

Note: the Death Notification Service triggers an initial notification only. You will still need to deal directly with each bank to close accounts, complete paperwork, and receive funds. But it removes the need to make multiple separate phone calls to start the process.

2. Tell Us Once (government departments only – not banks)

Tell Us Once is a government service that allows you to report a death to multiple government departments simultaneously – HMRC, the DWP, DVLA, the Passport Office, local councils, and others. You receive a reference number from the registrar when you register the death, and must use it within 28 days. For a full guide to what HMRC needs after a death – income tax, self-assessment, and inheritance tax – see dealing with HMRC when someone dies.

Tell Us Once does not notify banks. It covers government bodies only. You must contact banks separately, either through the Death Notification Service or by contacting each bank directly.

3. Contacting banks directly

Every major UK bank has a dedicated bereavement team. You can notify them by phone, online, by post, or in branch. You do not need all your documents to hand for the initial notification – most banks will take basic details (name, date of birth, date of death, account number if known) and send you a reference number and a list of next steps.

For step-by-step guides to individual banks, including phone numbers and current processes:

• How to notify Barclays
• How to notify NatWest
• How to notify Lloyds Bank
• How to notify Nationwide
• How to notify HSBC
• How to notify Santander
• How to notify Halifax
• How to notify Monzo
• How to notify Metro Bank
• How to notify Starling Bank
• How to notify Coventry Building Society
• How to notify NS&I (Premium Bonds, savings accounts)

What documents will you need?

The bank will require documents in stages. For the initial notification you typically only need the deceased’s basic details. For account closure and release of funds, the usual requirements are:

Some banks will accept a certified copy of the death certificate by post. Others require the original, which they will return. Check the bank’s bereavement guidance before posting any original documents.

Do you need probate to access a bank account?

Not always. It depends on the bank and the balance.

For sole accounts below the bank’s threshold (ranging from £5,000 to £50,000 depending on the bank – see the table above), most banks will release funds using a simpler process: a statutory declaration or indemnity form, the death certificate, and proof of your identity. You do not need to go through the full probate process.

For sole accounts above the threshold, probate is normally required. This means applying to the Probate Registry for a grant of representation, which can take several months. For more detail, see How long does probate take?

For joint accounts, probate is not normally required regardless of the balance, because the funds pass automatically to the surviving holder.

Important: thresholds apply per institution, not across all banks. If the deceased held £30,000 at Bank A and £30,000 at Bank B, each bank will apply its own threshold independently. You would not need to aggregate the balances for probate purposes – only the balance at each bank matters.

Digital-only banks: how the process differs

Digital-only banks – including Monzo, Starling, Revolut, and Chase UK – follow the same legal framework as traditional banks. Accounts are frozen when death is notified, direct debits are cancelled, and funds are held until the appropriate authority is provided. The process differs in a few important practical ways.

Lower probate thresholds

Digital banks generally set lower thresholds before requiring probate than their high-street counterparts:

These thresholds mean probate may be required for what would be a small estate at a high-street bank. This is particularly relevant for Revolut, where the £5,000 threshold matches NS&I – if the deceased held Revolut as their primary account, probate may be needed even for modest balances.

Online and app-based processes

Traditional banks allow you to notify and submit documents by post, phone, or in branch. Digital banks are predominantly digital: Starling and Revolut accept documents by email; Revolut handles bereavement entirely by email with no phone or postal option. For some families managing an estate while under significant emotional stress, the absence of a phone option at certain providers can be an additional difficulty.

Monzo’s tiered system

Monzo operates a three-tier process depending on the balance:

• Under £100: ID only is needed, and funds are transferred quickly
• £100–£25,000: ID plus a completed indemnity form
• Over £25,000: grant of probate or letters of administration, plus the indemnity form and ID

Once documents are received and verified, Monzo typically transfers funds to a nominated account within a few working days.

Starling Bank

Starling accepts notification by phone (020 7930 4450, available 24 hours) or email (help@starlingbank.com). Once documents are submitted, funds are typically transferred within 2 working days – faster than most high-street banks. Starling requires the grant of probate for balances over £10,000. For accounts holding shares, savings pots, or linked products, each may have its own closure process.

Revolut

Revolut accepts bereavement notifications at bereavement@revolut.com only. If the deceased held stocks, precious metals, or cryptocurrency within their Revolut account, these are liquidated and converted to cash before the balance is distributed. The £5,000 indemnity threshold applies to the total account value after liquidation. For anything above £5,000, a grant of probate or letters of administration is required. Revolut participates in the Death Notification Service.

Digital assets within bank accounts

Some digital banks and investment platforms hold non-cash assets – cryptocurrency, stocks, or other instruments – within the account. These cannot simply be transferred to the estate; they must be liquidated first, with the cash proceeds then distributed. The date-of-death valuation for IHT purposes will be based on the value of those assets at the date of death, not on the liquidated proceeds, so a record of both figures is important.

Scotland: confirmation instead of probate

The process of gaining legal authority over a deceased person’s bank accounts works differently in Scotland. While the end result is the same – banks require court authority before releasing funds – the mechanism, terminology, and court involved are distinct.

Confirmation: the Scottish equivalent of probate

In Scotland, the equivalent of an English grant of probate is called confirmation. It is issued by the sheriff court (not the Probate Registry, which covers England and Wales), and gives executors legal authority to uplift and distribute the deceased’s assets – including bank accounts, investments, property, and other funds held by third parties.

Applications for confirmation are lodged with the local sheriff court. Where the deceased had no fixed address in Scotland, or held assets in multiple jurisdictions, the HM Commissary Office (based at Edinburgh Sheriff Court) handles the application.

Scotland’s small estate threshold

Scotland has its own small estates procedure. Where the total value of the deceased’s estate is £36,000 or less, a simplified application can be made with assistance from the sheriff clerk’s office, without the need to appoint a solicitor. This is notably higher than the informal processes at individual banks – so some estates that would require probate at a given bank may still be eligible for the simplified court route.

When calculating the estate value for this threshold, debts are not deducted, and bank account interest to the date of death must be included.

What Scottish banks require

Scottish banks and UK banks with Scottish customers require confirmation before releasing funds above their own small-estate limits, just as English banks require the grant of probate. The bank’s published thresholds (set out in the table above) are the same in Scotland as in England – it is only the court document and court that differ.

If the deceased held accounts in both Scotland and England, executors may need both confirmation (for Scottish-law assets) and a grant of probate (for English-law assets). However, a Scottish confirmation can often be resealed in England and vice versa, rather than requiring two entirely separate applications.

Joint accounts in Scotland

As noted in the joint accounts section, survivorship in Scotland is not automatic in the same way as in England and Wales. The surviving account holder can continue operating a Scottish joint account after the death, but ownership of the deceased’s share depends on who contributed the funds. If the account holders were spouses or civil partners, equal ownership is presumed. In other cases, it depends on the facts. Seek advice from a Scottish solicitor if this applies.

For guidance on Scottish estate administration, see the Scottish Courts and Tribunals Service guide.

What if you cannot find all the bank accounts?

Executors frequently discover that the deceased held accounts they did not know about – old savings accounts, building society passbooks, a current account at a different bank. This is normal and does not mean the estate is at risk, but you do need to be confident you have found everything before distributing the estate.

My Lost Account service

The My Lost Account service (mylostaccount.org.uk) is free and run jointly by UK Finance, the Building Societies Association, and NS&I. It lets you search for dormant or unknown accounts across the majority of UK banks, building societies, and NS&I products simultaneously – you do not need to know which institution to contact. Responses from member institutions typically come within 90 days.

To use it for a deceased person, you will need to create an account, add the deceased as a third party with their name, date of birth, and previous addresses, and provide proof of your authority – usually a grant of probate or letters of administration. The service will then forward your search to member institutions.

Practical search methods before probate

If you need to identify accounts before probate is granted (for example, to complete the IHT forms), there are several useful approaches:

• Bank statements and post. Search the home for statements, cheque books, bank cards, and letters. Even a single interest credit on a statement can indicate an account you did not know about.
• Tax returns. The deceased’s self-assessment returns or P60s will show interest received from savings accounts. Cross-check these against known accounts – any unaccounted interest suggests a missing account.
• The direct debit list. Review direct debits on any known current account. Regular transfers to an unfamiliar bank or building society often indicate a savings account at that institution.
• Email and online banking. If you have access to the deceased’s email, search for bank statement notifications, app alerts, or account registration confirmations.
• Credit reference agencies. Asking a credit reference agency for a report on the deceased can surface financial relationships not visible elsewhere, including current accounts and overdrafts.

The Unclaimed Assets Register

The Unclaimed Assets Register covers insurance policies, pensions, investments, and some bank accounts at a cost of £25, covering multiple asset types in a single search. It is worth using where you believe assets may be dormant or the deceased had complex financial affairs.

Dormant accounts and the Dormant Assets Scheme

If a sole bank account is never notified and never closed, it will eventually be classified as dormant – typically after 12 to 15 years of inactivity, though timescales vary by institution. Under the Dormant Assets Scheme (originally established by the Dormant Bank and Building Society Accounts Act 2008 and expanded by the Dormant Assets Act 2022 to cover insurance policies, investments, and pension assets), funds from dormant accounts may be transferred to Reclaim Fund Limited (RFL) and redistributed to social causes in the UK.

Beneficiaries retain a legal right to reclaim those funds at any time, even after transfer to RFL. However, you cannot claim directly from RFL – you must contact the original bank or institution, which is required to honour the claim and reimburse you. Recovering funds after the estate has already been distributed creates significant administrative complexity. It is far simpler to identify accounts before the estate is closed.

Note: if you are searching for a dormant account and believe funds may already have been transferred under the scheme, contact the bank first – they remain liable to repay regardless of whether they still hold the funds or have transferred them to RFL.

Using the deceased’s bank account to pay inheritance tax

This is an option many executors do not know exists, and it can make a significant practical difference for larger estates.

Inheritance tax (IHT) must normally be paid before a grant of probate is issued – which creates a problem, because you cannot access the deceased’s accounts to pay it until you have probate. The usual workarounds are a personal loan, IHT bridging finance, or paying from your own funds and reclaiming from the estate later.

The Direct Payment Scheme removes this difficulty for estates with bank or savings accounts. It allows you to ask the bank to pay IHT directly to HMRC from the deceased’s account before probate is granted. The bank pays HMRC directly – you do not receive the funds. The process is:

1. Register as a personal representative with the bank (each bank has its own process for this)
2. Obtain an IHT payment reference number from HMRC (via form IHT422 or the online service)
3. Complete form IHT423 – available from the GOV.UK inheritance tax forms page – and submit it to the bank for each account you wish to use
4. Also submit the IHT400 and supporting schedules to HMRC at the Inheritance Tax team

Once the bank transfers the funds to HMRC, you receive confirmation that IHT has been paid, which is needed to complete your probate application. The scheme is available at most banks and building societies, and also at NS&I. Not all institutions participate, and smaller banks should be asked directly whether they are members.

For further detail on inheritance tax, including the current threshold and how to calculate it, see the GOV.UK guide to paying inheritance tax.

Should you open an executor’s bank account?

Where an estate involves multiple transactions – collecting funds from several accounts, paying outstanding debts, making distributions to several beneficiaries – most solicitors and experienced executors open a dedicated estate administration account (sometimes called an executor’s account).

This is a separate bank account in your name as executor, used solely for estate funds. The practical benefits are significant:

• All estate income and payments flow through a single account, making it straightforward to produce a final estate account for the beneficiaries
• You avoid mixing estate funds with your personal money, which protects you from any future dispute about what was paid and when
• Estate accounts produce their own interest records, which simplifies HMRC reporting

Most high-street banks will open an estate account on presentation of the grant of probate. Some also offer accounts to solicitors acting as administrators. If the estate is straightforward – a single account at one bank – a dedicated executor account may be unnecessary. For anything more complex, it is strongly recommended.

Note: FSCS protection (up to £85,000 per institution) applies to estate accounts as it does to ordinary accounts. If you are holding very large sums, consider spreading across institutions or asking the bank about temporary high balance protection, which can extend cover for 6 months for inherited funds.

What happens to overdrafts and debt on a bank account?

If the deceased’s account was in overdraft, this is a debt of the estate. The bank will notify the executor or administrator of any outstanding balance, and it must be settled from the estate before any remaining funds are distributed to beneficiaries.

Creditors have a claim against the estate – not against surviving family members personally. If the deceased’s bank account was a sole account with an overdraft, no family member is personally liable to repay it, unless they also signed as a joint account holder or provided a personal guarantee.

Joint account overdrafts are an exception. If an account is in joint names and has an overdraft, the surviving account holder is jointly and severally liable for the full outstanding amount – not just their share. Contact the bank early if a joint account is overdrawn.

If the estate does not have enough assets to pay all debts – an insolvent estate – debts are paid in a priority order set by law, and unsecured creditors (including an overdraft) may receive nothing. The same rules apply to credit card debt: see what happens to credit card debt when someone dies for a full explanation of how unsecured debts are handled from the estate.

What happens to a credit union account when someone dies

Credit unions are member-owned financial cooperatives, and their bereavement process differs from high-street banks in one significant way: the nomination system.

Members of a credit union can nominate a beneficiary to receive their savings on death. The nomination is registered directly with the credit union – it does not form part of the will and is not affected by intestacy rules. If a valid nomination is in place, the credit union can pay the nominated person up to £5,000 from the member’s savings without requiring a grant of probate or letters of administration. This makes it one of the fastest bereavement payouts available in the UK financial system.

For amounts above £5,000, or where no nomination was made, the standard estate administration process applies: the personal representative will need to provide a death certificate and, where the balance is above the credit union’s small-estate limit, a grant of probate or letters of administration.

In addition to savings, many credit unions provide a death benefit insurance policy that covers members’ savings and outstanding loans. This may pay an additional sum to the estate – effectively a form of life cover built into membership. Not all members qualify (exclusions typically apply above certain ages or account types), and the credit union’s bereavement team will confirm eligibility when you notify them.

The process for notifying a credit union is straightforward:

1. Contact the credit union by phone, online, or in branch with the member’s name, date of birth, and date of death
2. The account is frozen pending receipt of the death certificate
3. The credit union confirms whether a nomination is in place and advises on next steps
4. If a nomination exists and the balance is under £5,000, the nominated person can claim directly with proof of identity
5. For larger balances, the credit union will issue the date-of-death valuation and await the grant of probate or letters of administration

If you are unsure which credit union the deceased belonged to, contact the Association of British Credit Unions (ABCUL) or search the Financial Services Register for credit unions in their area.

What happens to overseas bank accounts when someone dies

Overseas bank accounts are a common source of difficulty for executors, and one of the most frequently overlooked areas of estate administration.

Disclosure to HMRC

UK-domiciled individuals are liable to UK inheritance tax on their worldwide estate. This means overseas bank accounts – whether held in a holiday-home country, from a period of living abroad, or as savings in a foreign currency – must be included in the IHT calculation. HMRC requires these to be declared on form IHT417 (foreign assets schedule), with balances converted to sterling at the exchange rate on the date of death.

Failure to disclose overseas accounts, even inadvertently, can result in penalties and interest from HMRC. If you discover a foreign account after the estate has been submitted, inform HMRC promptly.

Accessing the funds

A UK Grant of Probate (or letters of administration) does not automatically give executors the legal right to access funds held in a foreign bank. Each country has its own succession laws, and UK executors typically face one of two routes:

Both routes take time. Overseas estates typically take 6–18 months longer to administer than UK-only estates, and costs are higher due to translation requirements, apostille stamps on documents, and local professional fees.

Practical steps for overseas accounts

• Identify the accounts early – check the deceased’s bank statements, tax returns (interest from foreign accounts should appear), and any correspondence in a foreign language
• Obtain the date-of-death valuation in writing from the foreign bank, converted to sterling
• Instruct a local professional – most UK solicitors do not practise foreign law. A solicitor experienced in international estates can refer you to local professionals in the relevant country
• Check double-tax treaty relief – the UK has double-taxation agreements for inheritance/succession tax with a small number of countries (including France, Ireland, Italy, the Netherlands, and the USA). Where the foreign country also charges succession tax, relief may reduce the combined tax burden, but must be actively claimed
• Do not access the account without authority – withdrawing funds from a foreign account without local legal authority carries the same risks as in the UK, and may also breach foreign law

If the overseas balance is modest and the bank is in a cooperative jurisdiction, some foreign banks will release funds on production of the UK grant alone – it is worth writing to the foreign bank to ask their specific requirements before assuming a full local probate is needed.

Practical timeline: what happens and when

For an estate where probate is required and all steps proceed without complications, the table below gives a realistic sense of the stages involved.

Complex estates, contested wills, or IHT complications extend these timescales. For an estate below the bank’s probate threshold, the process from notification to funds released is typically 2–6 weeks.

For digital banks, once documents are received the transfer is typically faster: Starling typically transfers within 2 working days of receiving valid documents; Monzo similarly within a few working days.

Common questions

Can I withdraw money from a deceased person’s account?

No – not from a sole account, once the bank has been notified of the death. Sole accounts are frozen on notification, and any withdrawal after that point (unless authorised by the bank as a funeral payment) would be treated as fraud, even by a family member or executor.

If you need to meet immediate costs – such as the funeral – speak to the bank’s bereavement team. They can arrange direct payment to the funeral director from the account, in most cases without probate.

What if there is no will?

The bank account itself is dealt with in the same way – the account is frozen, and access requires someone to establish legal authority to administer the estate. Without a will, that authority comes from letters of administration rather than a grant of probate, but the bank’s process is identical.

The difference is in who has the authority to apply: without a will, the estate passes under the rules of intestacy, and the right to apply for letters of administration follows a legal order of priority (spouse or civil partner first, then children, then other relatives). The probate hub has more on intestacy and the application process.

Does the bank notify HMRC?

No – the bank will not notify HMRC or any government department on your behalf. You are responsible for notifying HMRC through Tell Us Once (for government departments) and separately for reporting the estate’s income and inheritance tax position. The bank will provide date-of-death valuations that you will need for the IHT forms.

What if the bank refuses to release funds?

If the bank is satisfied that probate is required and the correct documents have been supplied, there should be no grounds for refusal. If you believe the bank is acting incorrectly – for example, by demanding probate for a balance below their published threshold, or by delaying unreasonably – raise a formal complaint with the bank in writing. If the complaint is not resolved, you can escalate to the Financial Ombudsman Service, which handles bereavement-related disputes between banks and customers free of charge.

What to do next: a summary

If you have just lost someone and need to know where to start with their bank accounts:

1. Notify the bank early – you do not need all your documents yet. Call the bereavement line or use the bank’s online form. Most will accept a notification without a death certificate initially.
2. Use the Death Notification Service if the deceased banked at multiple institutions – one form covers them all at deathnotificationservice.co.uk.
3. Use Tell Us Once (separate from banks) to notify government departments – your registrar will give you the reference number when you register the death.
4. Gather documents – death certificate, your proof of identity, the will if there is one.
5. Check whether probate is needed – ask each bank for their current threshold and process. If the estate is large or complex, seek legal advice early.
6. Do not withdraw money from a sole account – wait for the bank to confirm the correct process for releasing funds.

For a full checklist of organisations to notify after a death, see what to do when someone dies.

Pensions are another major asset that needs dealing with after a death – and unlike bank accounts, they usually bypass probate entirely. See our guide to what happens to a pension when someone dies for the full process.

If the deceased held an ISA – a cash ISA, stocks and shares ISA, or NS&I cash ISA – there are specific rules around the tax wrapper and a special allowance for surviving spouses. See what happens to an ISA when someone dies for the full details, including the APS (Additional Permitted Subscription) allowance.

If the deceased held other savings accounts – including NS&I Direct Savers, fixed-rate savings bonds, or building society accounts – see what happens to savings accounts when someone dies for a full guide to the process, probate thresholds, and FSCS protection.

If you are also dealing with a property, see our guide to what happens to a house when someone dies – including how joint tenancy, probate, and mortgages are handled. If the deceased was a council or housing association tenant, see what happens to a council house or tenancy when someone dies – succession rights, who can take over, and what the estate must do if no one qualifies.

If there is a car to deal with, see what happens to a car when someone dies – including the DVLA process, insurance, road tax, and what to do if there is outstanding car finance.

If the deceased ran a business, the bank account situation is different: a sole trader’s business account is treated as part of their personal estate and frozen immediately, while a limited company’s account belongs to the company and should not be affected by the owner’s death. See what happens to a business when someone dies for the full picture.