When someone dies, one of the first practical questions is: "What happens to their bank account?" The bills are still going out, the pension is still going in, and the family needs to know what they can do — and what they have to wait for.
The answer depends on whether the account was sole or joint, how much is in it, and what the bank's individual rules are. Here's how it usually plays out in the UK.
Sole accounts: frozen until probate
When a bank or building society is told someone has died, they freeze the deceased's sole accounts. Specifically:
- No more debit card or online transactions
- Direct debits and standing orders are stopped (some banks let utilities continue for a short period)
- The account balance is held until the bank has authority to release it
The bank releases the funds either to the executor (with a grant of probate, or a grant of letters of administration if there's no will) or, for smaller estates, on a simpler form.
Most UK banks have a de minimis threshold below which they'll release funds without probate. The exact figure varies — typically anywhere between £5,000 and £50,000, with most clustered around £15,000-£25,000. Above the threshold, probate is required.
Our guide on the probate timeline walks through the typical sequence — most estates complete probate in 9-12 months, though simple estates can be faster.
Joint accounts: usually pass automatically
A joint bank account between two people in the UK is almost always held with a right of survivorship. When one holder dies, the surviving holder simply continues to use the account. There's no need for probate to access the funds.
The bank usually only needs:
- A copy of the death certificate
- A signed instruction to remove the deceased holder
The full balance now belongs to the survivor. (For inheritance tax purposes, half the balance is treated as part of the deceased's estate by default, unless you can show the contributions were unequal.)
This is one of the most useful features of joint accounts — money is immediately accessible during what's already a difficult time. The flip side is that you can't direct your share of a joint account to anyone else through your will — survivorship trumps the will.
If you'd rather plan for that explicitly, our guided will builder flags the implications of joint accounts as part of the bigger picture.
What can be paid out before probate
Even before probate is granted, banks and building societies will usually release funds for a small list of essentials:
- Funeral costs — banks will pay the funeral director directly from the deceased's account on production of an invoice and death certificate
- Inheritance tax bills — under HMRC's Direct Payment Scheme, the bank can pay inheritance tax owed before probate is granted (this solves the chicken-and-egg problem of needing to pay IHT to get probate)
- Probate fees — court fees for the application can be paid from the account
- Some urgent debts — at the bank's discretion
Beneficiaries don't get any payout pre-probate — they wait until the executor distributes the estate.
Practical steps for the family
Within the first week or two, the family should:
- Get multiple certified copies of the death certificate (you'll need them for every bank and provider)
- Notify each bank and building society — many use the Tell Us Once government service or the Death Notification Service to cover several at once
- Find the deceased's bank statements, paying-in books, and any letters from financial providers
- Check for accounts they may have forgotten — old savings accounts, ISAs, premium bonds. The mylostaccount service can help trace dormant ones
- Cancel direct debits the executor doesn't want continuing
- Redirect mail using the Royal Mail's redirection service, so nothing important is missed
Once probate is granted, the executor:
- Sends the grant to each provider
- Has the funds released to the executor's "estate account" — a temporary bank account in the estate's name
- Pays debts, taxes, and expenses
- Distributes what remains to the beneficiaries
Our piece on how to choose your executors covers what to look for in the people who'll be doing all this.
Inheritance tax on bank accounts
Bank balances are part of the estate for inheritance tax purposes. They sit alongside the house, investments, pensions (after April 2027 — see our inheritance tax guide), and everything else.
The standard thresholds apply:
- £325,000 nil-rate band per person
- £175,000 residence nil-rate band where a home passes to direct descendants
- Both frozen until April 2030 under current government policy
- Spouse-to-spouse transfers are completely exempt — including transfers of cash balances
For joint accounts between spouses, the survivor gets the entire balance with no inheritance tax implications. For joint accounts between unmarried partners or other relatives, half the balance is usually treated as the deceased's estate.
What about ISAs?
ISAs have their own rules:
- Cash ISAs and stocks & shares ISAs — the tax-free wrapper continues until the estate is administered, the ISA is closed, or three years pass (whichever comes first). This is called a "continuing ISA."
- Spousal Additional Permitted Subscription (APS) — a surviving spouse can get an extra ISA allowance equal to the deceased's ISA value. This lets the partner replicate the tax-efficient holdings in their own name.
These provisions are useful but not always well-publicised. Banks may not flag them automatically. For complex estates, we recommend you seek assistance from a Trusted Hands Advisor or your own legal advice.
Premium bonds, NS&I, and government products
National Savings & Investments products have their own rules. Generally:
- Premium bonds remain in the prize draw for up to 12 months after death
- NS&I will pay out without probate up to a relatively generous limit
- Inheritance is by claim, with a death certificate and the bonds' details
The NS&I bereavement pack is a useful starting point.
> Sorting your finances? Trusted Hands turns these decisions into a 15-30 minute guided builder. Start free → — only pay when you download.
What about overdrafts and unpaid balances?
If the deceased was overdrawn, the bank treats it as an unsecured debt of the estate. It joins the queue with other unsecured creditors and is paid (or written off) accordingly. We've covered this in our guide on debts on death.
For joint accounts, the surviving holder is liable for the full overdrawn balance — not just half — because joint debts are joint and several.
> Ready to start your will? Trusted Hands turns these decisions into a 15-30 minute guided builder. Start free → — only pay when you download.
Frequently asked questions
Can I access my parent's bank account to pay for the funeral?
Yes — banks routinely release funds directly to a funeral director on production of the invoice and death certificate, even before probate. You can't withdraw the money to your own account, but you can have the funeral bill paid from the deceased's account.
How long does the bank take to release funds after probate?
Usually within 2-4 weeks of receiving the grant of probate, though it can be faster for smaller balances and slower for complex accounts. Some banks pay into the executor's estate account; others issue a cheque.
What happens to direct debits when someone dies?
The bank stops direct debits once notified. Some essential ones (life insurance the survivor wants to keep, ongoing utilities) can be re-set up by the surviving partner or executor. Subscription services should generally be cancelled separately, as the bank stopping the direct debit doesn't cancel the underlying contract.
Are joint accounts always 50/50 for inheritance tax?
By default, HMRC treats joint account balances as belonging equally to the holders. If the funds came predominantly from one person — for example, an elderly parent and an adult child added for convenience — you can show that the contributions were unequal and apportion accordingly. Records help.
What if I don't know all the deceased's accounts?
The free mylostaccount service searches British banks, building societies, and NS&I for forgotten accounts. The Death Notification Service lets you notify many providers in one form. Going through the deceased's post and emails for the first few months also surfaces accounts you didn't know about.
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