What Happens to a Bank Account When Someone Dies?

A sole account is frozen as soon as the bank is told and stays that way until the estate's authority is proven; a joint account simply passes to the surviving holder. What happens next depends on the balance and the bank's own probate limit.¹

When someone dies, their bank accounts do not automatically close or transfer to anyone. What happens depends on whether the account was held in their name alone, or jointly with someone else. The distinction matters a great deal. Sole accounts are frozen immediately. Joint accounts pass to the surviving holder without probate. This guide explains both situations and what the executor or next of kin needs to do.

Sole accounts: frozen on notification

A sole account - held only in the deceased's name - is frozen the moment the bank is told of the death. The bank stops all debit card transactions, cancels standing orders and direct debits, and will not allow any withdrawals. This happens whether or not there is a will, and whether or not probate has been applied for.

The account stays frozen until the executor provides legal authority to release the funds. What counts as authority depends on the balance.

Under the bank's threshold: no probate needed

Most UK banks will release funds without a Grant of Probate if the balance is below their individual threshold. The threshold varies by bank. As a rough guide:

• Barclays, HSBC, Lloyds, Halifax, Santander: up to £50,000
• NatWest / RBS: up to £25,000
• Nationwide: up to £30,000
• NS&I (Premium Bonds, savings accounts): up to £5,000

Below these levels, the bank will usually pay out on sight of the death certificate, a completed bereavement form, and proof of identity. Above them, they require the Grant of Probate or Letters of Administration. Always confirm the current threshold directly with the bank before assuming.

Over the threshold: probate required

If the balance exceeds the bank's threshold, the executor must apply for a Grant of Probate before the bank will release any funds. Probate takes 8 to 16 weeks to obtain in most cases, often longer. The bank will hold the funds during that period.

Once the grant is issued, the executor provides a sealed copy to the bank and instructs them to close the account and transfer the balance to the estate bank account.

Joint accounts: survivorship

Joint accounts in England and Wales are almost always held with a right of survivorship. When one account holder dies, the entire account passes automatically to the survivor. No probate is required. The surviving holder does not lose access during the notification period.

You still need to tell the bank. The bank removes the deceased's name from the account on sight of the death certificate. The account continues in the survivor's sole name.

But note: the deceased's share of the joint account at the date of death is included in their estate for inheritance tax purposes. Between spouses and civil partners, the spousal exemption usually means no tax is due. For joint accounts held with adult children or siblings, HMRC will treat the deceased's portion as part of their taxable estate.

What the bank does when notified

When you notify the bank of a death, they:

• Freeze all sole accounts held in the deceased's name
• Stop all direct debits and standing orders
• Provide a date-of-death balance statement for each account
• Tell you whether they require a Grant of Probate to release funds
• Assign a bereavement reference number for all future correspondence

The date-of-death balance is important. You need it for the inheritance tax assessment - even if the estate is below the IHT threshold and no tax is due.

Can anyone access the account in the meantime?

Generally, no. Once a sole account is frozen, only the executor has authority to deal with it - and only after probate is granted, or the balance is confirmed to be below the bank's threshold.

There is one common exception. Most banks will release funds directly to a funeral director to pay funeral costs, before probate, if the executor requests this. You need to bring the funeral invoice and the death certificate. This is not automatic - you must ask the bereavement team.

What happens to direct debits and standing orders?

The bank cancels them when they freeze the account. Any payments that left the account after the date of death but before the bank was notified may be recoverable - the bereavement team can advise. Some organisations that received payments (utility companies, subscription services) may need to be contacted separately to arrange refunds.

What if there is an overdraft?

An overdraft is a debt of the estate. It has to be cleared before the estate is distributed to beneficiaries. The executor settles it from the estate assets. If the estate has insufficient assets to cover all debts, there is a legal order of priority - the bank is an unsecured creditor and comes after funeral costs, secured debts, and certain preferential creditors.

What if there is no will?

The bank's process is identical. The difference is that instead of applying for a Grant of Probate, the administrator applies for Letters of Administration. The administrator is usually the closest living relative - spouse, then children, then parents. The money is then distributed according to the rules of intestacy rather than a will.

See our guide to probate without a will for the full rules on who can apply and what intestacy means for distribution of the estate.

What happens to online banking access?

Online banking credentials cease to have any legitimate use after death. The account cannot be operated via online banking by family members after the death - that would be an unauthorised transaction. The bereavement process goes through the bank's bereavement team, not through the online banking portal.

If the deceased used online banking exclusively and you need to locate accounts, check their email inbox for bank notifications or statements, or look for banking apps on their phone or tablet.

The order of events: a summary

1. Register the death and obtain certified copies of the death certificate
2. Notify each bank (use the Death Notification Service to notify multiple banks at once)
3. Receive date-of-death balance statements from each bank
4. If below threshold: complete the bank's bereavement form and provide death certificate and ID
5. If above threshold: apply for probate, receive the sealed grant, provide it to the bank
6. Instruct the bank to close the account and transfer funds to the estate bank account
7. Receive the bank's closure confirmation and final statement

For the full step-by-step guide to closing accounts once you have the authority, see how to close a bank account after someone dies. For what documents you need at each stage, see documents required to close a bank account after death.

Common mistakes to avoid

• Spending from a joint account without thinking about tax. The deceased's share may still count for Inheritance Tax depending on who funded it.
• Leaving essential cover to lapse. Move buildings insurance and council tax before the freeze bites.
• Assuming small accounts always need probate. Many are released on a simple declaration below the bank's limit.²

Frequently asked questions

Is a bank account frozen immediately when someone dies?

A sole account is frozen once the bank is notified of the death, not automatically on the day of death. Until then nothing changes, but you should notify promptly.¹

What happens to a joint account?

It passes to the surviving account holder and is not frozen. You still tell the bank so the deceased's name is removed.¹

Can direct debits keep running?

No. They stop when the account freezes. Arrange alternative payment for anything essential beforehand.

Do I always need probate to access the money?

No. Below the bank's own threshold, funds are released on the death certificate and a declaration; above it you need the grant.²

Does the money count for Inheritance Tax?

Yes. The date-of-death balance, plus interest to that date, forms part of the estate for Inheritance Tax.³