What happens to my assets when I die?

The way in which assets are treated upon death varies depending on what the assets are and how they are held. Any assets which form part of the deceased’s estate will be dealt with by the Personal Representatives and will be distributed in accordance with the deceased’s Will or, where they did not have a valid Will, in accordance with the Rules of Intestacy.

Who can access my bank account when I die?

For bank accounts that are held in joint names with another party, unless the account holders have signed a Declaration of Trust stating that the account is held as ‘tenants in common’, the balance in the account will simply pass to the surviving partner and it will not be necessary to obtain a Grant of Representation for this to pass to them. This is called the ‘Right of Survivorship’. The surviving joint account holder should notify the bank of the death, but the account is not normally frozen, and the surviving joint account holder can usually access the account immediately.

For bank accounts held in the sole name of the deceased person, the Personal Representatives will be able to access funds once the Grant of Representation has been obtained.

How do the Personal Representatives find the account details?

it is a good idea for an up to date list of assets to be kept with the Will. However, if this has not been done then the first course of action would be to check through the deceased person’s paperwork to find any bank statements which will contain the necessary account details. Following the introduction of online banking, many banks no longer send paper statements and so these may be more difficult to find.

If the Personal Representative is not confident that they are able to find all assets and accounts held by the deceased, then they should carry out a Financial Assets Search.

What does the bank do next?

Once the Personal Representative has found the relevant bank details, they should notify the bank that the accountholder has died. The bank will need to see a death certificate and may also need to see the Will. If the deceased had several bank accounts with different providers, it may be easier for the Personal Representative to sign up to The Death Notification Service online – this is a free service which notifies some major financial institutions at the same time.

Once the bank has been notified of the death, they will then freeze the account. Direct debits or standing orders will no longer be taken from the account, so any utility providers or companies that are taking these payments should also be notified of the death.

It is illegal to take money from a bank account of someone who has died, even if you did hold a Power of Attorney for them and you were able to access their accounts prior to their death. This is because the Power of Attorney ends when the donor dies.

A Grant of Probate or Letters of Administration will usually be needed for the Personal Representative to close the account. However, funds from the account can still be used to pay the funeral invoice and any inheritance tax due prior to the Grant of Representation being obtained. The funds in the account should then be distributed by the Personal Representative in accordance with the terms of the Will or the rules of intestacy.

What happens to Premium Bonds?

If the total value of the Premium Bonds is less than £5,000, it may be possible for these to be dealt with without a Grant of Representation. The Premium Bonds can be encashed immediately, or they can be kept in the draw for a further 12 months after the date of death. Any prizes won during these 12 months will then be paid into the estate.

What happens to Pensions?

Any pension providers, including the Pension Service if the deceased was receiving a State Pension, should be notified of the death as soon as possible. For State Pensions, this can be done as part of the Tell Us Once service on the Government Website. The Department for Work and Pensions can then calculate whether there is anything due to the estate or anything that needs to be repaid to them.

Certain types of pensions will provide benefits to financial dependents or to the estate of the deceased and this should be checked with the pension provider. The deceased may have completed a form prior to their death to express their wishes as to who or where any benefits are to be paid to. Some pension providers will continue to pay a reduced pension to the surviving spouse or civil partner of the deceased.

If you would like more information, please contact me at s.wildsmith@timms-law.com or via telephone on 01283 214 231.