What happens to the bank account in the event of death? Did you know ?

administrative procedures that must be carried out. Among them are the management of bank accounts of the deceased. This process raises many questions, including: what happens to a bank account after death in 2024? This article aims to shed some light on this topic, covering the different account types and how to manage this tricky transition.

Management of individual and joint accounts

Following a death, the first step is to inform the bank to initiate account blocking. The bank acts immediately after receiving the death certificate, preventing any further operations. This freezing concerns all accounts of which the deceased was the holder, whether individual or joint. Family members or heirs must therefore:

• Provide the death certificate by registered mail with acknowledgment of receipt to make the death official.

About the individual accounts, the death of the holder results in a systematic blocking. Despite this, certain automatic movements, such as debiting a check issued before death, can still occur. This is due to bank processing times. It is important to note that any power of attorney over these accounts expires with death.

THE joint accounts, for their part, are normally not blocked if one of the co-owners is still alive. However, the balance available at the time of death enters the deceased’s estate. The heirs of the deceased and the surviving co-owner must:

• Agree on the management of these funds, under penalty of integration into the estate.

The fate of other financial investments

In addition to checking and savings accounts, the deceased may have other forms of investments, such as securities portfolios (shares, bonds) or savings plans. Like bank accounts, these investments are also frozen following death, with the only exception:

• The possibility of collecting interest or income still pending.

It is essential for heirs to:

• Find out about these investments to ensure that they are duly taken into account in the estate.

SCPI: How to sell your SCPI shares while optimizing your gains?

Release of funds and financing of urgent expenses

Despite the blocking of assets, it is recognized that certain immediate needs may justify the release of funds. Heirs can access a maximum sum of €5,000 to cover costs such as:

• Funeral costs.
• Posthumous care of the deceased.
• Latest tax obligations of the latter.

The unblocking request must be accompanied by the necessary supporting documents and sent to the bank.

Faced with the possibility of higher costs, particularly for a funeral in accordance with the last wishes of the deceased, there are solutions such asdeath insurance. The latter may provide:

• Immediate payment of a larger sum to cover funeral costs.
• Relieve the deceased’s loved ones from the financial pressures linked to the inheritance and the settlement of any debts.

Manage the estate and anticipate costs

The administration does not stop with the initial release of funds. Management of the estate often takes time and may reveal unexpected debts of the deceased. In order to anticipate these situations, it may be wise to consider death insurance. This ensures that heirs have the necessary funds to:

• Set the inheritance fees without having to sell goods in a hurry.

It is essential to consider:

• The tax burden.
• The financial obligations of the deceased to prevent any unpleasant surprises during the settlement of the estate.

Good planning, including subscribing to a adapted insurancecan contribute to:

• Balancing estate assets and liabilities.
• Guarantee a more peaceful transfer of the deceased’s assets.

In summary, the disappearance of a loved one creates a complex process of managing their financial assets. Knowledge of the rules governing blocking and unblocking accounts, combined with good preparation, will facilitate this painful step. This will allow heirs to focus on grieving, while ensuring a smooth transition of financial and property responsibilities.