When someone dies, often families ask:
What happens to their bank accounts?
The answer depends on the bank, the type of account, the balance, whether the account was held jointly, and whether probate or letters of administration is required.
This guide explains what usually happens to bank accounts after someone dies in Australia, in simple terms.
In simple terms
When a bank is notified that a customer has died, it will usually restrict or place controls on the deceased person’s accounts until it knows who has authority to deal with the estate.
In some cases, a bank may release money without probate. In other cases, the bank may require a grant of probate or letters of administration before releasing funds.
In plain English
Banks usually want to know three things:
- who died
- who’s authorised to deal with the account
- whether probate or letters of administration is required
Each bank has its own process, so you it’s better to check directly with the bank before making assumptions about what documents are needed.
What happens when the bank is notified?
Once the bank is told that someone has died, it may:
- place restrictions on the deceased person’s account
- stop certain transactions
- ask for a death certificate
- ask for proof of your identity and relationship to the deceased
- ask whether there is a will
- ask whether probate or letters of administration have been granted or will be applied for
The exact process differs between banks and financial institutions.
Joint bank accounts
If the account was held jointly, the surviving account holder will usually be able to continue dealing with the account.
In many cases, the bank will ask for a certified copy of the death certificate before closing or transferring the joint account into the surviving account holder’s name.
Joint accounts are often simpler than accounts held only in the deceased person’s name, but you should still contact the bank directly.
Sole bank accounts
If the account is in the deceased person’s sole name, the bank will usually need to confirm who has authority to deal with the account.
Depending on the amount in the account and the bank’s own policy, it may ask for:
- a death certificate
- identification
- a copy of the will
- probate
- letters of administration
- a bank-specific deceased estate form
- a small estate declaration or indemnity form
Some banks may release smaller balances without probate, but this depends on the institution.
Do banks always require probate?
No, not always.
Some banks may release smaller balances without probate if the estate is straightforward and the person requesting access can provide the documents the bank requires.
That said, banks may require probate or letters of administration if:
- the account balance is higher
- there is uncertainty about who is entitled to act
- there is no will
- there are multiple people involved
- the bank wants formal proof of authority
Can funeral expenses be paid from the bank account?
In some cases, banks may allow certain estate-related expenses, such as funeral expenses, to be paid from the deceased person’s account.
This depends on the bank’s own policy and what documents they require.
You should contact the bank before assuming payments can be made.
What if there’s a mortgage or loan?
If the deceased had a mortgage, personal loan, credit card or other debt, you should contact the lender.
The account may be:
- in the deceased person’s sole name
- jointly held with another person
- secured against property
- linked to insurance
Legal Aid NSW notes that where a home loan is in the deceased person’s sole name, the executor or next of kin should tell the bank or financial institution without delay, and probate or letters of administration may be needed so the property can be legally dealt with.
What information should you have ready?
When contacting a bank, it helps to have:
- the deceased person’s full name
- date of birth
- date of death
- last known address
- account number, if known
- death certificate, if available
- a copy of the will, if there is one
- your own identification
- your relationship to the deceased
- whether you are the executor or next of kin
Do not send sensitive documents by unsecured email unless the bank confirms that is acceptable. Ask the bank how they prefer documents to be provided.
Does this mean probate is required?
Not necessarily. The bank’s response may help you work out whether probate is likely to be needed.
Probate may be more likely if:
- the account is in the deceased person’s sole name
- the balance is significant
- there are other estate assets
- the bank specifically asks for a grant of probate
- there is property or other complex estate property
Probate may be less likely if:
- the account was jointly held
- the balance is small
- the bank is prepared to release the money using its own deceased estate process
- there are no other significant assets
What should you do next?
Start by contacting each bank or financial institution directly.
Ask:
- what documents they need
- whether the account is held solely or jointly
- whether probate or letters of administration is required
- whether they have a deceased estate team
- whether any forms need to be completed
It can help to keep a record of every organisation you contact.
Not sure where to start?
If you are still trying to understand whether probate is required, start here:
Read: Do I need probate in Australia?
Download: Our comprehensive Probate Guide designed for Executors
Key takeaway
Bank accounts do not all work the same way after someone dies.
Some accounts may be dealt with using the bank’s own deceased estate process. Others may require probate or letters of administration before funds are released.
The safest first step is to contact each bank directly and ask what they require.
General information only. This is not legal advice. Requirements vary between banks, institutions, states and territories.