Sole accounts are frozen
Once you tell the bank about the death, an account in the person's sole name is frozen. Money cannot be taken out, standing orders and direct debits stop, and any card is cancelled. The balance still belongs to the estate — it is simply held until the bank knows who is entitled to it.
Most banks have a dedicated bereavement team, and you usually only need to tell them once for all the accounts held with that bank.
Joint accounts
A joint account normally passes automatically to the surviving account holder, who can keep using it. The bank will usually put the account into the survivor's sole name. Even so, the deceased's share may still count towards the value of the estate for inheritance tax purposes.
What can still be paid
Banks will often pay certain bills directly from the frozen account before the estate is settled, most commonly:
- The funeral director's invoice
- Inheritance tax due before probate can be granted
- Probate application fees
Ask the bereavement team to pay these directly to the supplier rather than reimbursing you, and keep every receipt for the estate accounts.
When probate is needed to release the money
Each bank sets its own limit for releasing funds without a grant of probate. Some will release a few thousand pounds on sight of the death certificate and a signed indemnity; others want probate for anything above a much larger sum. Ask each bank for its threshold in writing — it can change the answer to whether you need probate at all.
Practical order of work
- List every bank, building society and credit card provider used
- Contact each bereavement team and ask what they need and what their release limit is
- Ask for a written balance as at the date of death — you need it to value the estate
- Redirect income such as pensions and note anything overpaid
- Keep the account open until the estate is fully settled
The date-of-death balances you collect here are exactly what the Estate Value Calculator needs, so it is worth doing both together.