Parks KugleTrendingPosted on Nov 24, 2023Updated on Nov 24, 2023, 12:42 pm CST
Losing a loved one can be one of the hardest experiences in your life, and one expert says it’s best not to add stress to the occasion by prematurely informing the bank that your loved one has passed.
Amy Devine, a social worker who goes by @yourhospicesocialworker on TikTok, explains in a video what steps you should take when telling the bank a loved one has passed away so the bank does not complicate the grieving process. The video has been viewed over 695,000 times as of publication.
“When I say, ‘Don’t tell the bank,’ I don’t mean don’t ever tell the bank. I just mean don’t tell the bank yet,” Amy explains in the clip. “Give yourself some time to grieve.”
“You can use this time to start going through paperwork, bank statements, maybe gathering information on what accounts were getting automatically debited,” she continues, “and making arrangements to notify those people and setting up alternative payments. While you’re doing this, any automatic payments are continuing to go out of the account, and any premiums can be deposited.”
Amy explains that waiting to inform the bank allows a family member time to gather all relevant information, including details on life insurance policies and electricity and utility bills. After notifying the bank, the account will be frozen, meaning nothing can be taken out or deposited. Amy says you will receive your loved one’s death certificate within four to six weeks. She advises showing the certificate to the bank so you can work on accessing the funds.
“Hopefully, they have set up some kind of protection on their account, like a payable on death, where you can access those funds,” she says. “Or, maybe they had a revocable trust in place, and you can show those trust documents.”
“Another thing you can do to assist with the bank issue is add a joint signer,” she continues. “If your loved one passes away and there’s a joint signer on the account, that joint signer can still manage affairs through that account.”
Though many commenters agreed with Devine’s advice, several others shared that banks can be notified of an account holder’s death in other ways.
“Banks are notified anyway…they knew within about ten days,” one viewer said.
“Thing is, social security will also notify the bank as well, even if you don’t,” a second remarked.
“When I worked at a bank we read the obituary every morning and froze accts,” another shared.
According to Bankrate, one issue is that funeral homes routinely inform the Social Security Administration that your loved one passed away. This is to ensure that Social Security checks stop being issued. Once the bank is notified, accounts will be frozen.
The outlet also reports that there are ways to avoid the complications. The easiest way is to have a joint account signer. The loved one can also give a family member power of attorney to allow for preparation. Another way is to consolidate accounts to make it easier to move funds. Finally, if you are gathering information about a deceased relative’s accounts, you should check the state’s unclaimed money database. All banks have to surrender unused accounts to the state after a period set by local laws.
The Daily Dot reached out to Devine via TikTok comments for further information.
*First Published: Nov 24, 2023, 10:30 pm CST
Parks Kugle
Parks Kugle is a writer and reporter based in San Antonio. His work has appeared in Lumina Literary Journal, Wicked Local Newspapers, and various publications across the U.S. He enjoys comics and gardening.
FAQs
Amy explains that waiting to inform the bank allows a family member time to gather all relevant information, including details on life insurance policies and electricity and utility bills. After notifying the bank, the account will be frozen, meaning nothing can be taken out or deposited.
What happens when you tell the bank someone has died? ›
If there's no will, the bank could ask for evidence of your relationship to the deceased. You'll also need the death certificate. When you've registered the death, you will be issued with a death certificate. This will act as formal notification for the bank to begin closing the account.
Do I need to notify the bank when my spouse dies? ›
Report the person's death to banks, credit card companies, credit bureaus, and other financial organizations. And contact utilities and places where the person had memberships and subscriptions. Learn from the Federal Trade Commission what to do about any debts the person had.
What happens to the bank account when someone dies? ›
Banks and other financial institutions commonly freeze the accounts of deceased individuals to prevent fraud. This is one reason why it's important to have a POD or TOD beneficiary designated to ensure your money can be accessed by your loved ones if you pass away.
What happens if one of the joint account holders dies? ›
In the majority of cases, when one of the owners of a joint account passes away, ownership automatically passes on to the surviving member (or members). Because of this, joint accounts typically avoid the extensive probate process that other accounts can be subject to.
Can I withdraw money from a deceased person's bank account? ›
If you're the joint owner of the deceased person's bank account, you should be able to withdraw money right away. Otherwise, you typically must supply documents showing that you legally have access to the account. Documents a bank might request include: Government-issued ID, such as your driver's license or passport.
Do banks freeze accounts when someone dies? ›
This is not a bad idea, but most banks will still immediately freeze the account. This is because they will usually require a death certificate and an affidavit of survivorship by each of the surviving heirs.
Do banks freeze joint accounts when a spouse dies? ›
What happens to joint accounts when someone dies? Most joint bank accounts include automatic rights of survivorship, which means that after one account signer dies, the remaining signer (or signers) retain ownership of the money in the account.
What not to do when your spouse dies? ›
Top 10 Things Not to Do When Someone Dies
- 1 – DO NOT tell their bank. ...
- 2 – DO NOT wait to call Social Security. ...
- 3 – DO NOT wait to call their Pension. ...
- 4 – DO NOT tell the utility companies. ...
- 5 – DO NOT give away or promise any items to loved ones. ...
- 6 – DO NOT sell any of their personal assets. ...
- 7 – DO NOT drive their vehicles.
A surviving spouse or child may receive a special lump-sum death payment of $255 if they meet certain requirements. Generally, the lump-sum is paid to the surviving spouse who was living in the same household as the worker when they died.
It is best to think of the decedent's belongings, paperwork, and assets as “frozen in time” on the date of death. No assets or belongings should be removed from their residence. Their vehicle(s) should not be driven. Nothing should be moved great distances, modified, or taken away.
How long can a deceased person stay on a bank account? ›
Banks generally cannot close a deceased account until after the person's estate has gone through probate or has otherwise settled. Joint accounts that are held together with a surviving owner are not considered deceased accounts. Ownership of these accounts reverts to the surviving owner.
Is it illegal to use a dead person's Facebook account? ›
Fraudulent use of a deceased person's identity is a crime. But you can reduce the threat by closing the decedent's accounts and taking care not to broadcast too many personal details about them.
Can a spouse override a beneficiary on a bank account? ›
Getting back to assumptions, it's expected that spousal rights could override those of the beneficiary. Technically, this is true. As the account holder, you can choose anyone you want to receive proceeds or assets, and your spouse might have a legal leg on which to stand.
Why shouldn't you always tell your bank when someone dies? ›
Amy explains that waiting to inform the bank allows a family member time to gather all relevant information, including details on life insurance policies and electricity and utility bills. After notifying the bank, the account will be frozen, meaning nothing can be taken out or deposited.
Do all joint accounts have a right of survivorship? ›
Right of Survivorship by Default: Generally, joint bank accounts are presumed to have rights of survivorship unless otherwise specified.
Why do you not tell the bank when someone dies? ›
According to Bankrate, one issue is that funeral homes routinely inform the Social Security Administration that your loved one passed away. This is to ensure that Social Security checks stop being issued. Once the bank is notified, accounts will be frozen.
Who can tell a bank someone has died? ›
Online. Our online form lets you notify us and send the documents we need when you have them. You can also notify a number of banks and building societies about a person's death at the same time using the Death Notification Service.
How long does it take for a bank to release funds after death? ›
How long do banks take to release money after probate? Each bank has its own policy but most will release funds held in the deceased's account within two weeks of being provided with the documentation they require.
When to notify a mortgage company of death? ›
If you're wondering when to notify the mortgage company of death, the answer is as soon as possible. You'll want to give yourself ample time to locate and submit any necessary documents, including a death certificate, and assume the mortgage quickly to avoid long-term problems with the lender.
