What Happens to a Bank Account When Someone Dies

When someone dies in Australia, their bank accounts may become part of their Estate. The process of dealing with a deceased person's bank account typically falls under the purview of the Executor or Administrator of the Estate. But how soon after the death should a bank be notified?

To administer an Estate, it's crucial to know how and when to notify bank of the death of the accountholder. The bank needs to be notified of the accountholder's passing as soon as possible, as any bank accounts of the deceased remain active until the bank is notified of the death. This typically entails providing the original Death Certificate for verification purposes and the Will, if one is available. Once notified, the bank will freeze the account to prevent unauthorised transactions.

When this happens, no one can withdraw money from the account, including any authorised persons with a Power of Attorney (PoA) or appointed by the deceased person to manage their finances before death.

Payments going into the account (or direct credit payments) will still be processed; however, outgoing payments, direct debits or automatic transactions will no longer work. If there is a joint account, the funds generally become accessible to the other account holder.

The Executor must then obtain a Grant of Probate (or Letters of Administration if there is no Will), proving their legal right to administer the Estate.

Keeping track of Estate finances can be a challenging process. To ensure you stay on top of all the notifications you need to make on behalf of the deceased promptly and efficiently, use our simplyNotify service.

Find Out About simplyNotify

Since the administration of a Deceased Estate incurs costs and can be expensive, some questions that might concern you would include:

• How do banks find out someone has died?
• What happens to bank accounts when someone dies in Australia?
• Can you withdraw money from a deceased bank account in Australia?
• Can an Executor use a deceased bank account?
• Is withdrawing money from a bank account after the death of the accountholder allowed?
• How long can you keep a deceased person's bank account open?
• Are bank accounts frozen when someone dies?

Some of these include expenses relating to the funeral, tax, application for the Grant of Probate or Letters of Administration with the Supreme Court and any other experienced support needed. Depending on your state or territory, you may be able to use the deceased person's bank account to pay or refund the ones incurred to this point.

If you have an unpaid invoice or require reimbursement for a settled invoice, you can present these at the deceased person's bank with other information explained below and request these to be paid on behalf of the Estate or reimbursed to the payee.

Note: Once the funds have been transferred into the 'Estate of the Late' account, you, as the Executor or Administrator of the Estate, have access to the funds and can make payments or reimbursements directly on behalf of the Estate.

Banks and financial institutions provide a wide range of products and services and we have provided the following list for you to ensure you don't miss anything:

• Everyday accounts with bank cards
• Savings accounts with or without bank cards
• Term deposits
• Debit cards
• Credit cards
• Prepaid debit cards
• Overdraft facilities
• Personal loans
• Mortgage accounts
• Investment accounts
• Life insurance products
• Superannuation products

19.4.1 Overview
19.4.2 Sole Ownership
19.4.3 Joint Ownership

19.4.1 Overview

As with all assets and liabilities, the crucial first step is to understand who the owner is. Most assets and liabilities can be held solely in the deceased person's name or jointly with another person. If the surviving joint owner is still alive, then in most circumstances the specific asset or liability will pass to that other owner.

Every bank account, service agreement or arrangement with a financial institution is usually entered into by one or more persons. Finding out the name(s) on the bank statement or signature(s) on the agreement will help you identify which of the two applies.

The most common bank account ownership types are:

• Sole ownership; and
• Joint ownership.

19.4.2 Sole Ownership

As a sole owner of a banking product or service, the Executor, Administrator or Next of Kin will be responsible for determining the total value of all combined assets and liabilities. They need to include all assets and liabilities held in the deceased person's name alone, and these will need to be transferred to the Deceased Estate for distribution.

Note: The deceased person may have some banking products or services in their sole name and others jointly with another person. Each product or service should be evaluated and treated separately.

19.4.3 Joint Ownership

As a joint owner of a banking product or service, the assets and liabilities associated will in most cases automatically transfer into the surviving joint owner's name once the death is confirmed via the Death Certificate.

Exceptions to the automatic transfer to the surviving joint owner may apply to credit cards, personal loans or home and investment loans or where the Will states specific distribution wishes that may come into play if these distributions are in line with the applicable state or territory legislation.

To transfer all jointly held products and services and related assets and liabilities in the surviving owner's name, you can submit or present a copy of the Death Certificate to the bank (you may have already completed this in Step 12 – Notification of Government Departments & Service Providers of the Death). This will prove the death and allow the financial institution to transfer the relevant account, product and/or service into the surviving joint owner's name.

Once the bank(s) are informed of the death with the Death Certificate and Will (if available) as proof, the bank will contact you and guide you through their process.

The bank will review all accounts, products and services held in the deceased person's name and determine what documentation they need to ascertain the death has occurred, that you are an authorised person they'll be dealing with on behalf of the Deceased Estate, and to know that funds will be released to the right account.

If a person was and continues to be financially dependent on the deceased person and may be experiencing financial hardship, by following this step, the bank will put a hold on all accounts solely in the deceased person's name and transfer jointly owned accounts to the surviving joint owner. Funds will no longer be accessible.

Refer to Step 9 – Bereavement Allowances & Support Payments for more information about financial help that may be available.

You or someone in the deceased person's family may have been authorised by the deceased person to act as Power of Attorney on their behalf for private, business or other matters. A Power of Attorney often provides for complete access to bank accounts.

However, the appointment of a PoA ends as at the date of death of the person authorising it, and the Executor or Administrator are the only persons allowed to deal with the Deceased Estate and its assets and liabilities, including bank accounts.

To ensure that you as the Executor, Administrator or Next of Kin have complete oversight over financial outgoings that were made before the death of the deceased person, it is recommended to review bank statements in detail to check for unusual amounts being paid or transferred from the deceased person's accounts. If the deceased person was unable to make transactions for a while, that period should be investigated thoroughly. All transactions made should be substantiated by the Power of Attorney with receipts or other evidence.

If you have notified all companies the deceased dealt with, the banks you have informed about the death should have already informed you of their specific process regarding closing deceased bank accounts and the documents they require to initiate the Estate Administration process.

Note: Depending on the size of the Estate, the bank may request you to provide a Grant of Probate or Letters of Administration issued by the Supreme Court in the relevant state or territory to facilitate the closing of the bank account for the deceased. This is explained in more detail in Step 27 – Grant of Probate Application or Applying for Letters of Administration.

Generally speaking, the process can be summarised in these key steps but may vary depending on the bank:

Phase 1 – Before you have Grant of Probate or Letters of Administration:

1. Immediately stop using secondary credit cards that are linked to the deceased person's credit card account;
2. Provide or present a Certified Copy of the Death Certificate, the deceased person's information and Executor, Administrator or Next of Kin contact details to:
   a) place a temporary hold on all accounts held solely in the deceased person's name; and/or
   b) move all jointly held accounts, products and services to the surviving joint owner;
3. Provide invoices or payment receipts for funeral and other Estate administration-related expenses that the bank may pay from the deceased person's account before the funds are available to the Estate;
4. Request details and balances about all accounts held in the deceased person's name;

Phase 2 – With Grant of Probate or Letters of Administration:

5. Complete the bank's identification process to ascertain that you are the Executor, Administrator or Next of Kin authorised to be dealing with the bank on behalf of the Deceased Estate;
6. Open an 'Estate of the late' bank account in to which all eligible funds will be transferred to;
7. Complete the required indemnity and release information to release the funds to the Estate; and
8. Close the accounts held solely in the deceased person's name.

The critical point at this time will be to work through Phase 1 (activities 1-4) above to determine the total value of all accounts solely owned by the deceased person. This information can then be added to your Assets & Liabilities Inventory.

It is recommended to contact the bank(s) that the deceased person dealt with and organise a meeting at a branch to present the necessary documents. We have put together the key information for the four major banks in Step 19.9 below for your convenience.

Each bank will have their specific administration process in place and provide information about this on their websites. For your convenience, simplyEstate has compiled information and details about major banks in Australia below:

• ANZ – Australia and New Zealand Banking Corporation
• CBA – Commonwealth Bank of Australia
• NAB – National Australia Bank
• Westpac

ANZ – Australia and New Zealand Banking Corporation

If the deceased person dealt with ANZ, you should notify the bank of the death as outlined below:

Phone: 1800 237 170
Contact Hours: Monday – Friday, 8:00am – 7:00pm AEST
ANZ Branch near you can be found here
Opening Hours: Monday – Thursday, 9:30am – 4:00pm and Friday 9:30am – 5:00pm
Post: ANZ Estates, PO Box 585, Collins Street West, Victoria 8007

Relevant Documents
You will need to provide the following documents or as requested by the bank:

• Certified Copy* of the Death Certificate;
• Certified Copy* of the Will, if available;
• Your proof of identity; and
• Deceased person's bank account numbers if known.

*You can bring the original documents to the branch as well for certification.

Once you have a complete overview of all accounts and wish to proceed to release all funds from ANZ into the 'Estate of the Late' account, you will need to provide the following:

• ANZ Identification Form
• ANZ Release and Indemnity Form
• Grant of Probate (where a Will exists) or Letters of Administration (where a Will does not exist) may be requested by ANZ once all accounts to the Estate were reviewed.

Proof of Identity

Find out which documents ANZ accepts as proof of identity documents.

Home Loans

To find out about available options and refinancing contact ANZ Home Loans.

Phone: 1800 035 500
Contact Hours: Monday – Friday, 8:00am – 9:30pm (AEST) and Saturday – Sunday 8:00am – 4:30pm (AEST)

Website

The ANZ Estates website can be accessed here.

CBA – Commonwealth Bank of Australia

If the deceased person dealt with CBA, you should notify the bank of the death by visiting a branch with the documents outlined below: Phone: 1800 686 153
Contact Hours: Monday – Friday, 8:30am – 5:00pm AEST
CBA Branch near you can be found here
Opening Hours: Monday – Friday, 9:30am – 4:00pm

Relevant Documents
You will need to provide the following Commonwealth Bank Deceased Estate forms and documents or as requested by the bank:

• CBA Deceased Customer Notification Form;
• Original Death Certificate;
• Original Will (if available);
• Your proof of identity; and
• Deceased person's bank account numbers if known.

Release of Funds
Once you have a complete overview of all accounts and wish to proceed to release all funds from Commonwealth Bank into the 'Estate of the Late' account, you will need to provide the following:

• CBA Certified Copies Identification Form – if you are not already a Commonwealth Bank customer; and
• CBA Claim for Assets Form – Claim assets held on behalf of deceased customer (Estates under $50,000); or
• CBA Authority to Release Assets Form – Release assets from a Deceased Estate (Estates over $50,000 requiring Probate or Letters of Administration).

Proof of Identity
If you are a Commonwealth Bank customer, simply provide your NetBank customer number. Alternatively, you will need to provide one of the following to prove your identity:

• Primary Photographic Identification (one of the following):
  • Passport;
  • Australian Driver's Licence; or
  • National Identity card.
• Primary Non-Photographic Identification (two of the following):
  • Birth Certificate;
  • Pension Card; or
  • Citizenship Certificate.
• A combination of Primary Non-Photographic and Secondary Identification (one of each):
  • Birth Certificate;
  • Pension Card; or
  • Citizenship Certificate;
  and
  • Electricity bill;
  • Gas bill;
  • Council rates; or
  • Recent notice issued by the Australian Taxation Office.

Website

The CBA Estates website can be accessed here.

NAB – National Australia Bank

If the deceased person held any NAB accounts or products, you should complete NAB Deceased Estate forms, including the NAB Deceased Customer Notification Form online or contact the bank as outlined below.

Phone: 1800 911 451
Contact Hours: Monday – Friday, 8:00am – 5:00pm AEST
Email: NAB.Bereavement.Support@nab.com.au
NAB Branch near you can be found here
Opening Hours: Monday – Friday, 9:30am – 4:00pm AEST
Post: NAB Bereavement Support, GPO BOX 2067, Melbourne VIC 3001

Home Loans

To find out about available options and refinancing contact NAB Home Loans.

Phone: 1800 035 500
Contact Hours: Monday – Friday, 8:00am – 9:30pm (AEST) and Saturday – Sunday 8:00am – 4:30pm (AEST)

Relevant Documents
You will need to provide a Certified Copy of one of the following:

• Death Certificate;
• funeral notice; or
• medical certificate confirming the date of death,

one of the following proof of identity documents:

• driver's licence; or
• passport,

and one of the following:

• the Will (if available); or
• Proof that you are a Next of Kin (death certificate, marriage certificate or birth certificate).

Once NAB receives the NAB Deceased Customer Notification Form submitted online, the bank will inform you how to provide the relevant documents.

Release of Funds

Once you have a complete overview of all accounts and wish to proceed to release all funds from NAB into the 'Estate of the Late' account, you will need to provide the following:

Proof of Identity

Find out which documents NAB accepts as proof of identity documents. Website

The NAB Estates website can be accessed here.

Westpac

If the deceased person dealt with Westpac, you should notify the bank of the death as outlined below:

Email: estatesmanagement@westpac.com.au
Phone: 1300 130 240
Contact Hours: Monday – Friday, 9:00am – 5:00pm AEST
Westpac Branch near you can be found here
Opening Hours: Monday – Thursday, 9:30am – 4:00pm and Friday 9:30am – 5:00pm
Post: Westpac Estates Management, 1 King Street, Concord West NSW, 2138 IBN11

Relevant Documents
You will need to provide the following documents or as requested by the bank:

• Certified Copy of the Death Certificate;
• Certified Copy of the Will, if available;
• Your proof of identity; and
• Deceased person's bank account numbers if known.

Release of Funds

Once you have received a Letter of Requirement from Westpac with a reference number for your case, you can request a complete overview of all accounts and proceed to release all funds from Westpac into the 'Estate of the Late' account.

You will need to provide:

• Grant of Probate (where a Will exists) or Letters of Administration (where a Will does not exist) upon request by Westpac depending on the total value of all accounts held with Westpac.

Proof of Identity

Find out which documents Westpac accepts as proof of identity documents.

Home Loans
Phone: 1800 067 497
Contact Hours: Monday – Friday, 8:00am – 9:30pm (AEST) and Saturday – Sunday 8:00am – 4:30pm (AEST)

Website

The Westpac Estates website can be accessed here.

At this point, getting a full understanding of all bank balances (positive and negative) and knowing how to get bank statements of the deceased are critical. Once the above steps are completed, the bank will provide the authorised Executor, Administrator or Next of Kin with an overview of all accounts and their balance.

Once you have all this information from all banks you believe the deceased person had accounts with, you can copy this information to the simplyEstate Assets & Liabilities Inventory. With this information completed, you will start getting a better idea of the total value of the Deceased Estate.

As outlined in Step 15 – Determining Deceased Estate Assets & the Residuary Estate, you may want to check for any large amounts transacting into or out of the deceased person's bank accounts to determine if there may be an amount owing to someone by the Estate or if someone owes money to the Estate.

Note: The value of all assets and liabilities are to be captured as at the date of death. You'll need to get bank statements as of the date of death to establish the Estate value which, in turn, are needed to apply for the Grant of Probate or Letters of Administration. You can use simplyNotify to request statements quickly and efficiently for compiling and determining the Estate value.

Different banks will have varying document requirements depending on your situation and the size of the Deceased Estate. But, do banks require Probate to release funds? As a general rule, if the Estate assets held by the bank are worth $50,000 or more, the bank will most likely request for a Grant of Probate or Letters of Administration to finally release the funds to the Estate, so you can distribute to the Beneficiaries.

Step 27 – Grant of Probate Application or Applying for Letters of Administration will provide more detail about this Step.

If the bank requests for this now already, you will need to explain that you require the statements showing all balances of the deceased person's bank accounts in order to apply for a Grant of Probate or Letters of Administration with the Supreme Court in the relevant state/territory. Once granted, you will then contact the bank again with the Grant of Probate or Letters of Administration to continue the process towards releasing the funds to the Estate as outlined in Step 19.8 – The Process of Closing a Deceased Bank (Phase 2).

It's good to know that once you reach Step 30.3 – Set Up Estate Bank Account (Estate of the Late Account) you will be reminded to open an estate of the late account with other important preparations. To do this, you need to know how to open an Estate bank account in Australia.

The goal will be for the deceased person's bank(s) to release all funds held by them into a bank account specifically created on behalf of the Deceased Estate. You will be holding the cash and other Estate assets in trust on behalf of the deceased person as the authorised Executor or Administrator.

Such a bank account is called an 'Estate of the ate' account and only the authorised Executor(s) or Administrator(s) will have access to this account to make the final distributions to Beneficiaries. It will be important to nominate the Estate of the late account in the release form to ensure all funds belonging to the Deceased Estate are transferred to the correct account.

Where Grant of Probate or Letters of Administration are not needed to finalise and distribute the Deceased Estate, the Next of Kin who is taking care of the administration may request cash held in the name of the deceased person to be transferred into their personal bank account for distribution to all eligible Beneficiaries.

In this instance you will be asked to provide proof of the death, your relationship to the deceased as well as sign a Statutory Declaration and a release and indemnity form so the bank is confident to release funds to you personally.

Note: If you are the Next of Kin using your personal account, you should take utmost care to keep detailed records to separate what is your personal compared to Estate money. Before using a personal account, you should explain to all Beneficiaries the reasons for doing so, provide a copy of the Will (if available) or relevant legislation to explain why you are acting on behalf of the Estate, on what basis the distribution will be completed, and seek agreement from all Beneficiaries beforehand. There may be personal income tax implications you should seek advice on. If unsure, we recommend seeking professional advice.

Step 30 – Estate Bank Account Setup & Transfer of Deceased Estate Property will explain everything you need to do to prepare the Estate to request transfer of funds.