Can the next of kin withdraw money from the deceased's bank account?
Dealing with the death of a loved one often raises many questions, especially around financial matters such as withdrawing money from a deceased bank account. It’s a common assumption that the next of kin can simply access funds to cover immediate expenses or distribute money to family members. But is this the case? Can the next of kin withdraw money from a deceased bank account without formal authority?
This article will clarify the legal process involved in accessing a deceased person’s bank account, highlight any exceptions, and explain when probate is required. It aims to provide clear guidance during a time that is often emotionally and administratively overwhelming.
Legal rights vs emotional assumptions
Many people believe that next of kin (such as a spouse, child, or sibling) automatically have the right to access a deceased loved one’s bank account. However, in the UK, being next of kin does not give someone the legal right to withdraw money from a deceased person’s account. Banks and financial institutions typically freeze the accounts of someone who has passed away as soon as they are notified of the death. This is to prevent unauthorised access and to ensure that the estate is distributed correctly. Only someone with the legal authority, either as an Executor (if there’s a Will) or Administrator (if there’s no Will), can deal with the deceased’s financial affairs. This authority is usually granted through a legal document called a Grant of Probate or Letters of Administration. Without this legal authority, even close family members cannot access the funds, no matter their relationship to the deceased.
Small estate exceptions
There are exceptions to the rule, especially when dealing with small estates. Some banks have policies that allow for the release of funds without a Grant if the total value held in the account falls below a certain threshold. This threshold varies between institutions but typically ranges from £5,000 to £50,000. In these cases, banks may release funds directly to the next of kin or the person organising the funeral, once they receive proof of death and complete any internal forms. This is often done to help cover funeral costs or pay for urgent expenses related to the estate. However, even in these instances, the bank usually requires specific documentation, such as the death certificate, ID for the person making the request, and possibly a completed indemnity form.
When probate is needed?
If the deceased held significant assets such as property, shares, or large bank balances, probate is almost always required before any money can be withdrawn or the estate can be administered. Probate is the legal process of confirming that a Will is valid (if one exists) and appointing the person who is responsible for managing the estate. Once probate is granted, the named Executor (or Administrator in intestacy cases) will be able to access all the deceased’s assets, including bank accounts. Only then can funds be legally withdrawn, used to pay off debts, and eventually distributed to beneficiaries according to the Will or the rules of intestacy. It’s important to note that withdrawing money from a deceased bank account without legal authority (even with good intentions) can be considered fraud or theft, with serious consequences.
Final thoughts
So, can the next of kin withdraw money from a deceased bank account? The short answer is no, not without the proper legal authority. While there are some exceptions for small estates, in most cases, funds will remain inaccessible until probate or Letters of Administration are granted.
Understanding the correct process can help avoid delays, confusion, and potential legal issues. At Kings Court Trust, we specialise in estate administration and can help navigate the complexities of probate, ensuring everything is handled legally and efficiently. If you need assistance managing a loved one’s estate, get in touch with our experienced team for expert guidance and peace of mind.
