What Happens to Joint Bank Accounts When Someone Dies?

One of the most common questions in the early days after a bereavement is what happens to the bank account that the deceased held jointly with a partner or family member. The answer is usually straightforward: the surviving account holder inherits the account automatically. But the detail matters, particularly for inheritance tax, so this guide explains the full picture.

Right of survivorship: the basic rule

Most joint bank accounts in England and Wales are held with a right of survivorship. This means that when one account holder dies, the account automatically passes to the surviving account holder or holders. The process happens by operation of law -- it does not depend on the will, does not require probate, and does not form part of the estate for distribution purposes.

The surviving account holder notifies the bank of the death, provides a death certificate, and the bank removes the deceased's name from the account. The account continues in the survivor's name with the existing balance intact.

How to notify the bank

Contact the bank as soon as possible after the death. Most banks have a dedicated bereavement team. You will need to provide:

• A certified copy of the death certificate
• Your own identification
• The account number or sort code

The bank will typically freeze both the joint account and any sole accounts held in the deceased's name temporarily while they process the notification. For the joint account, this freeze is usually brief. The account will then be transferred into the surviving holder's sole name. Do not be alarmed by a temporary freeze -- this is standard procedure and the bank will resolve it promptly.

Joint accounts and probate

Because joint accounts pass by right of survivorship, they do not form part of the deceased's estate and probate is not required to access them. This is one of the main practical advantages of joint accounts for couples -- even if the rest of the estate is subject to probate, a surviving spouse or partner can continue to access the joint account during what can be a lengthy administration period.

This is different from sole accounts, which are frozen by the bank and cannot be accessed until a Grant of Probate (or Letters of Administration) has been obtained, subject to each bank's own threshold. See our guide to closing bank accounts after death for detail on how sole accounts are handled.

Joint accounts and inheritance tax

Although joint accounts pass outside the estate for distribution purposes, they are included in the estate for inheritance tax purposes. HMRC treats the deceased's share of any joint account as part of their taxable estate. In most cases that share is 50%, though in principle HMRC can argue for a different proportion if the evidence suggests otherwise.

The inheritance tax exemption between spouses and civil partners (the spousal exemption) means that in practice most joint accounts between married couples or civil partners will not attract inheritance tax regardless. But for joint accounts held with other family members -- adult children, siblings -- the deceased's 50% share must be included in the inheritance tax calculation.

Our guide to inheritance tax explains the full picture, including the current nil-rate band threshold and available reliefs.

Accounts operated for the deceased's benefit

There is an important exception. If a joint account was operated primarily for the benefit of the deceased -- for example, where a son or daughter was added to the account simply to help with banking but had no beneficial interest in the funds -- HMRC may argue that the full balance belonged to the deceased. In that case, the full amount would be included in the estate for inheritance tax, not just 50%.

If this might apply to an account in the estate you are dealing with, keep a clear record of who contributed funds to the account and how it was used. A solicitor can advise on how HMRC is likely to treat it.

Tenants in common and joint tenants for property

The right of survivorship concept applies similarly to property, but only if the property was held as joint tenants. If property was held as tenants in common, the deceased's share forms part of their estate and does not automatically pass to the surviving owner. See our guide to joint tenants vs tenants in common for a full explanation of how property ownership affects what happens on death.

Sole accounts: a different process

Sole accounts held only in the deceased's name are treated very differently from joint accounts. The bank freezes the account on notification of the death — no further card payments, direct debits or outgoing transfers are processed — and will not release funds until probate has been granted, unless the balance falls below the bank's own threshold. Each bank sets its own threshold independently, typically between £25,000 and £50,000.

For a full explanation of what the freeze means and how long it lasts, see our guides to are bank accounts frozen when someone dies and how long bank accounts stay frozen after death. Our guide to bank probate thresholds lists the current thresholds for the major UK banks and explains what documentation each requires.

Practical steps for executors

Even if a joint account passes automatically to the survivor, the executor should still:

• Ask the bank to confirm the date-of-death balance -- this figure is needed for the inheritance tax form (IHT205 or IHT400) regardless of whether tax is due
• Record the joint account balance in the estate inventory
• Include the deceased's 50% share in the estate valuation submitted to HMRC

If you are unsure how the estate's assets fit together for tax purposes, take the free Settle assessment. It asks you about the assets and their values and gives you a clear summary of what applies to your estate.