I lent some money to a close friend as her hubby died suddenly and when she told the bank then all their accounts were frozen even her credit card which was in her name but was a 2nd card off his account.
It brought home to me how many people especially older women are financially vulnerable. My question is this just one bank being heavy handed or is this normal.
Banks freezing money when death occurs
Banks freezing money when death occurs
Posted in:
Life Lessons, Health & Wellbeing, Money
6 Replies
I think it’s all banks. My parent’s financial advisor told them years ago that while it’s all joint money, they each need an account solely in their name, so that if something happens to one of them the other still have access to money until everything is finalised after the death.
They have to do it, you have to show them the document that you’re the executor of the will to access his estate. It sounds like the account was in his name, she just had a card with her name on it. Yes, that’s very vulnerable.
Yes this is correct, it is a legal requirement, that all assets in the deceased name go into probate for 6 weeks to allow time for the will to found filed and distributed. My mum was in the same situation. Not everything gets automatically left to the partner. There could be estranged children, a mistress, debt collectors that have every right to claim on his assets within that 6 weeks.
I know a lot of women don't think separate accounts should be a thing because it's always been families have joint accounts, but we don't live in the same world as when this was the norm.
I've always had a separate account, from day one. Our only joint account is our mortgage account, and that only because the bank said we have to.
Every person should expect, and take action to manage, basic independence.
My mum was the same, the bank luckily told her this would happen, she withdrew a decent amount to live off.
I've worked in banking for over 15 years and this is completely incorrect for where I work. If accounts are joint with either party to operate, the accounts should remain accessible with the deceased parties name removed once death cert, etc is finalised. As far as the credit card goes, I'm assuming your friend was actually the secondary card holder not the deceased party, as the primary card holder has full ownership of a credit card. I see alot of couples who lose track over the years of who owns the credit card and who is secondary.