What happens to bank accounts after someone dies
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In short. When a UK bank is told someone has died, they freeze sole accounts and stop standing orders/direct debits. Joint accounts usually pass to the surviving holder automatically. Most banks release balances up to about £25,000–£50,000 without a Grant of Probate; the exact threshold is set by each bank. The Death Notification Service (deathnotificationservice.co.uk) covers most major UK banks in one form.
Banks are required by FCA principles to treat bereaved customers with care. The UK Finance Bereavement Standard sets out minimum service levels including a single point of contact, clear timelines, and not chasing the deceased's debts at the family.
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Sole accounts
Once notified, the bank freezes the account. The personal representative (executor named in the will, or administrator if there is no will) deals with the bank using a copy of the death certificate and ID. Direct debits for essential services (utilities, Council Tax) are typically continued or refunded; mortgage payments may need to be discussed separately.
Banks will release funds to pay the funeral, inheritance tax due to HMRC and probate court fees before a Grant of Probate is issued — usually direct to the funeral director, HMRC or HMCTS.
Joint accounts
Joint current and savings accounts normally pass to the surviving holder under the 'right of survivorship'. The bank just removes the deceased's name on production of the death certificate. The balance does still form part of the estate for Inheritance Tax purposes.
Small-estates threshold (no probate)
Each UK bank sets its own limit for releasing funds without a Grant of Probate, typically £25,000–£50,000. Above the limit the executor must produce the Grant. Where the deceased held accounts at several banks, each applies its own limit; an asset above one bank's limit can still avoid probate if there are no other large assets in the estate.
FAQ
- Does the bank automatically know someone has died?
- No — banks only act on a formal notification. The Death Notification Service lets you notify most major UK banks in one online form; smaller banks and building societies have to be contacted directly.
- What happens to a credit card balance?
- Debts owed by the deceased are paid out of the estate before anything is distributed. Where the estate has no money, sole-name credit-card debts die with the deceased — banks are not allowed to chase relatives unless they were a joint borrower or guarantor.
- Can I keep paying the mortgage from the deceased's account?
- Usually not after the bank freezes the account. The mortgage lender must be told separately; they have a duty to consider hardship and to give the personal representatives time to deal with the property.