When someone dies, their sole bank accounts are frozen until someone with legal authority can deal with them. Working out who that is, what the bank will release before then, and what it will not, is one of the first practical jobs an executor faces. This guide explains how it works and what to watch for. It applies to England and Wales.
Why accounts are frozen
Once a bank is told that a sole account holder has died, it freezes the account. Money cannot be withdrawn, direct debits and standing orders stop, and cards and online access cease to work.
The freeze protects the estate rather than obstructing the family. It keeps the money intact until the person legally entitled to deal with it can be identified.
Banks will want to see a death certificate. Some will act on a phone call initially, but all will need documentation before doing anything with the money. Our guide to registering a death covers obtaining certified copies, and it is worth ordering several at the outset.
How much will a bank release before probate?
This is the question everyone asks, and the honest answer is that nobody can tell you a figure without asking your bank.
There is no legal threshold and no industry standard. Each bank sets its own limit, can change it without notice, and most do not publish it at all. Ranges quoted online, commonly “£25,000 to £50,000”, do not come from any bank, regulator or trade body. GOV.UK, MoneyHelper and Citizens Advice all say the same thing: it depends entirely on the organisation, so ask.
A couple of institutions do publish a figure. Nationwide and Santander both currently state that a grant is needed where sole accounts with them exceed £50,000. Those are their own published policies, not a general rule, and other banks differ.
The trade body position confirms it is discretionary. UK Finance’s Estate Administration Banking Protocol, which took effect in February 2026 and replaced the older 2012 protocol, sets no threshold. It says a firm may, at its discretion, release additional funds from a deceased person’s sole accounts before probate against a signed indemnity.
So the practical advice is simple: ring the bereavement team of each institution and ask what their current limit is and what they need. That is the only reliable answer.
The one statutory figure, and what it does not cover
There is a £5,000 statutory limit, and it is widely misunderstood. It comes from the Administration of Estates (Small Payments) Act 1965 and has not moved since 1984.
It does not give anyone a right to release an ordinary bank account. The Act works by raising the limits in a defined list of other enactments, covering things like friendly societies, industrial and provident societies, trade union funds and certain public sector pension and service arrangements. High street current and savings accounts are not in it. Anything your bank releases is its own commercial policy, not a legal entitlement.
Paying for the funeral
Most major banks will pay a funeral director’s invoice directly from the deceased’s account before probate. Santander, Lloyds and NatWest all say so on their own bereavement pages. It is each bank’s policy rather than a right, and UK Finance’s protocol makes clear a firm may still ask for an indemnity or a solicitor’s undertaking.
One point is worth knowing before anyone reaches for their own card. The payment usually goes straight to the funeral director, and several banks, NatWest among them, will not reimburse a relative who has already settled the bill personally. If you want the estate to bear the cost without waiting for the grant, send the invoice to the bank rather than paying it yourself.
Can next of kin take money out?
No. Being a spouse, child or next of kin gives no right to operate a deceased person’s sole account. Authority to use an account ends at the moment of death, so a debit card, online login or third party mandate is no longer valid, however long it has been used.
In practice the consequence is usually civil rather than criminal: the bank reclaims the money and whoever took it has to account for it to the estate. It can cross into fraud or theft where someone knowingly takes money they are not entitled to.
There is a trap for executors here too. If you allow a family member to keep using the account, you remain personally accountable to the beneficiaries and creditors for what leaves the estate, and you may have to make good the shortfall yourself. Our guide to the duties of an executor covers that exposure.
Joint accounts
Joint accounts work differently. They are usually held as beneficial joint tenants, so the balance passes automatically to the surviving account holder by survivorship. It does not pass under the will, and probate is generally not needed for it. The bank removes the deceased from the mandate on sight of the death certificate, and the survivor carries on.
That does not take it outside inheritance tax. This is the most common misunderstanding about joint accounts, and it costs people money. The deceased’s beneficial share still forms part of their estate for IHT even though the survivor now owns the funds outright.
Nor is the share automatically half. HMRC normally treats each holder as entitled to the proportion attributable to their own contributions. If the deceased funded the whole account, the whole balance goes into the inheritance tax figures, even if the account was in two names. Our guide to the gross and net value of an estate explains how this feeds through.
Very occasionally a joint account is held beneficially as tenants in common, where there is clear evidence the holders intended unequal or separate shares, for instance an account opened purely so one person could manage another’s money. The deceased’s share then passes under the will or intestacy. The bank will have no record of this, because it records who can operate the account rather than who beneficially owns it, and it will pay the survivor regardless. The point is closely related to the one we cover for property in tenants in common versus joint tenancy.
Telling the banks
You do not have to contact every institution individually. The free Death Notification Service, operated by Equiniti and launched with UK Finance member banks, lets you notify a number of firms in one submission. Membership covers around thirty banks and building societies, plus share registrars and some home and motor insurers.
It is not comprehensive. Several well known names, including TSB, the Co-operative Bank, Virgin Money, Metro Bank, Monzo and Starling, are not currently members, so check the live list before you rely on it and contact the rest directly. The service notifies firms and prompts them to contact you; it does not close accounts.
It is also entirely separate from Tell Us Once, which notifies government departments such as HMRC, the DWP, the DVLA, the Passport Office and the local council. Tell Us Once does not contact banks, insurers or utility companies, and you must use it within 28 days of receiving your unique reference number. See our guide to Tell Us Once.
What executors need from the bank
Contact the bereavement team early, before the grant arrives, so you know what each institution will want.
- A date of death balance for every account, in writing. You need this for the estate valuation and any inheritance tax return. Ask for accrued interest to be shown separately.
- Details of anything else held, including savings accounts, ISAs, safe deposit boxes, loans, credit cards and overdrafts. Debts matter as much as assets; see debts and probate.
- The bank’s own requirements and threshold, so you know whether you need a grant for that institution at all. Our guide to when probate is required sets out the wider test.
- A sealed copy of the grant, once issued. Order enough copies with your application: they cost £2 each at that point and £16 each afterwards.
Keep a record of every call and letter. A clear paper trail is what protects you if a beneficiary questions something later.
Using the deceased’s account to pay inheritance tax
Executors often face a circular problem: the tax must be paid before the grant is issued, but the money is locked in accounts the grant would unlock.
The Direct Payment Scheme solves it. Using form IHT423, you can ask a bank, building society or investment provider to pay some or all of the inheritance tax straight to HMRC from the deceased’s own account, before probate. Send a separate form to each institution rather than to HMRC, and note that participation is voluntary, so not every provider takes part.
You need an inheritance tax reference number first. Our guides to the IHT400 and to probate forms cover the paperwork.
Interest and tax during the administration
Two different rules apply, and they overlap in a way that catches people out.
Interest that had built up but had not yet been paid at the date of death still counts towards the account’s value for inheritance tax. Interest paid or credited after the death is income of the estate, taxable during the administration period.
Estates get no personal allowance. Since 6 April 2024 there has been a de minimis: if the estate’s total income is £500 or less, it does not need to be reported. Above that, personal representatives pay income tax on estate income, and simple estates can usually be settled by writing to HMRC at the end of the administration rather than filing returns.
Accounts nobody can find
If you suspect there are accounts you cannot trace, use My Lost Account. It is free, and it brings together the tracing schemes of UK Finance, the Building Societies Association and NS&I in a single form. It covers accounts where the bank or building society has since closed or merged.
Money in long dormant accounts may have passed into the Dormant Assets Scheme, but the right to reclaim it is never lost. Claims are made through the original bank or building society, which is then reimbursed, so that is where to start.
Because these routes are free, there is no reason to pay a commercial tracing firm a percentage of whatever it finds. Our guide to asset searches and probate covers when a professional search is genuinely worth it.
Executor and estate accounts
Several banks offer an account in the name of the estate for executors to collect funds in and pay from. Requirements vary: most want the grant, photographic identification and proof of address, and some expect you to bank with them already. It is worth asking two or three, because processes and the quality of bereavement support differ considerably.
Keeping estate money separate from your own is not just tidy. As executor you must be able to show exactly what came in and what went out, and mixing funds makes that very hard and can expose you personally if a beneficiary later disputes how the estate was handled.
That record is the estate accounts: a statement of everything received, everything paid and the balance for distribution. Beneficiaries are entitled to see it, and in some cases to approve it before the estate is wound up. Our guide to how long it takes to receive inheritance money is useful to share with them.
Getting help
Most bank dealings after a death are administrative. Where an estate involves inheritance tax, a business, a disputed will or accounts abroad, it is worth getting advice before you start rather than afterwards. Our probate checklist sets out the whole process, and you can request a quote or book a free consultation through The Probate Network.
Frequently asked questions
How much will a bank release before probate?
There is no legal threshold and no industry standard, so no article can tell you. Each bank sets its own limit and can change it. Nationwide and Santander both publish £50,000 for sole accounts; most banks publish nothing. Figures like “£25,000 to £50,000” circulating online do not come from any bank, regulator or trade body. Ring the bereavement team and ask what their current limit is and what documents they need.
Can next of kin withdraw money from a deceased person’s account?
No. Authority to operate an account ends at death, so a card, online login or third party mandate is no longer valid even for a spouse. In practice the bank reclaims the money and whoever took it must account for it to the estate, though knowingly taking money you are not entitled to can amount to fraud or theft. An executor who allows it may be personally liable to the beneficiaries.
Will the bank pay for the funeral?
Most major banks will pay a funeral director’s invoice directly from the deceased’s account before probate, and Santander, Lloyds and NatWest all say so. It is a matter of policy rather than entitlement, and the bank may ask for an indemnity. Importantly, the money usually goes straight to the funeral director: several banks will not reimburse a relative who has already paid the bill personally, so send them the invoice instead.
Does a joint account avoid inheritance tax?
No. A joint account normally passes to the survivor automatically and outside probate, but the deceased’s share is still counted in their estate for inheritance tax. The share is not automatically half either: HMRC normally apportions by contribution, so if the deceased funded the whole account, the whole balance goes into the figures.
Do I have to tell each bank separately?
Not all of them. The free Death Notification Service lets you notify around thirty banks and building societies, plus some share registrars and insurers, in one submission. It is not comprehensive, and TSB, the Co-operative Bank, Virgin Money, Metro Bank, Monzo and Starling are not currently members. Check the live list and contact the rest yourself. Tell Us Once is separate and covers government departments only, not banks.
What happens to direct debits and standing orders?
They stop once the bank is notified and freezes the account. Payments that went out between the date of death and the notification may need to be recovered, so keep a note of them for the estate accounts. Check for anything that needs to continue, such as buildings insurance on an empty property, and arrange another way to pay it.
How do I pay the inheritance tax if the money is frozen?
Use the Direct Payment Scheme. Form IHT423 asks a bank, building society or investment provider to pay the tax straight to HMRC from the deceased’s account before the grant is issued. Send a separate form to each institution, not to HMRC, and get your inheritance tax reference number first. Participation is voluntary, so check the provider takes part.
This article is for general guidance only and applies to England and Wales. It does not constitute legal, tax or financial advice. Bank policies, rules and thresholds change, and individual banks set their own terms. For advice on your own circumstances, speak to a qualified professional. You can book a free legal consultation through The Probate Network.
