Accessing Funds After Someone Dies
- AuthorHayley Ruckin
When someone dies, the general practice of most banks and building societies is to freeze the accounts until the Personal Representatives of the estate has received the official document known as the Grant of Probate. Access to the accounts is only allowed to pay for funeral arrangements and any Inheritance Tax that is due.
Applying for a Grant of Probate can be a very stressful and time consuming process.
The banks and the building societies are attempting to relieve that stress by raising the limits on how much cash can be released without the need for a grant. The application process is still however essential where the deceased owned a property or shares.
Each organisation will set its own limit but typically it used to be about £15,000 to £20,000. Lloyds TSB have now raised its limit to £50,000 and Royal Bank of Scotland to £25,000 and HSBC has removed their limit altogether and will be assessing each matter on a case by case basis.
This relaxation of the limits can ease the pressure put on families when waiting for the Grant of Probate as finances can become strained during a very difficult and emotional time.
The Private Client team at Neves are always happy to talk you through the process and assist in any way we can.