What happens to my bank account if I die?
If you die, accounts in your name alone are closed and the money is released to your executor, who distributes it in line with your will.
Key takeaways
- A will directs your funds; without one, next of kin or an administrator manages your estate.
- As executor, provide a death certificate and identification to the bank to settle accounts.
- Joint accounts generally pass to the surviving account holder; the deceased's debts are paid from their estate.
What will happen to my bank account if I die?
In the event of death, bank accounts held solely in the deceased's name are eventually closed by the bank. Before that, the bank releases the remaining money to the executor named in the will (or a court-appointed administrator), who then distributes it in line with the will, a legally binding document outlining who gets the deceased's assets following death.
If there is no will, the state or territory's Supreme Court can appoint an administrator, who collects the money and distributes it to the deceased's relatives under intestacy laws. It's important to note that the deceased's debts, such as credit card or personal loan debt, are paid from their estate before anything is distributed to beneficiaries.
If you don't yet have a will created, you can get started making a will on the Service NSW website online.
How do I claim a bank account when someone dies?
If someone you know has passed away, the executor named in their will (or the administrator, if there's no will) will need to contact the bank to start the process of settling the deceased's bank accounts.
The bank will then send a letter advising of next steps. But before the deceased's estate can be settled and their bank accounts closed, the financial institution needs documents showing proof of death, and identification from the executor or administrator proving their authority over the deceased's estate.
Documents you'll need
The following documents must be provided before the financial institution can close or transfer ownership of the account(s):
- A death certificate
- A Grant of Probate or Letters of Administration (if the bank requires one)
Some financial institutions will accept the following, or a combination of the following documents as proof of death:
- Medical certificate
- Funeral bill
- Solicitor’s letter or coroner’s letter
What happens to a bank account if someone dies without a will?
If the deceased has not left a will, a spouse or next of kin can apply for Letters of Administration from the state or territory's Supreme Court. As an estate administrator, this person will be responsible for collecting all the assets, paying any debts, and then distributing assets to the beneficiaries.
The Letters of Administration may need to be provided to the financial institution along with the death certificate.
Once the financial institution has all the information it needs to satisfy its requirements, if the account is held solely in the name of the deceased, account access is restricted, a certificate of balance is issued, the money will be paid out, and the account is closed.
Frequently asked questions about deceased estates
What happens to joint bank accounts?
If the bank account is held jointly, ownership of the account will be transferred to the other primary account holder. The account will continue to function as normal.
What happens to credit card debt?
If the deceased has credit card debt or personal loan debt, it's paid from their estate before the remaining assets are distributed to beneficiaries. You generally won't be responsible for these debts unless you were a joint account holder or guarantor.
What happens to term deposits?
A term deposit investment can be released before the date of maturity once the financial institution gets all the necessary paperwork, declaring the person has passed away. Fees and charges are waived and any interest owed on the investment is paid.
What happens to my home loan if I die?
To find out what happens to your home loan in the event of your death, we suggest you read our guide on this topic.
How long does it take for an account to be settled and closed?
Financial institutions advise that each case is different. We suggest you contact your financial institution for further information.
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I am looking for Home and Contents insurance for a Deceased Estate. There is a tenant living in the house.
Hi Alan,
You can compare a range of home and contents insurance policies here: https://www.finder.com.au/home-insurance/home-and-contents-insurance
Thanks,
Alison
My father had a joint with his wife. Instead of closing the account they just took all the money out and put it in another bank. Now my father has passed away and his wife passed in 2021. The bank has been given the death certificate but are claiming that we need to supply the account number of this account before they will close the account. Can you please advise if the bank has the right to hold up proceedings because of this. Regards
Hi Robyn,
There’s nothing specifically mentioned about this in the banking code of conduct, but it does state: We will treat the deceased person’s representative with respect and compassion and provide clear and accessible information on what you, the deceased’s representative, can do to manage a customer’s account in the event of their death.
Your best bet is to continue working with your bank to resolve this issue, and if you can’t resolve it, lodge a complaint with the Australian Financial Complaints Authority (AFCA). Best of luck!
I knew a woman she is a single mum divorce and her son grow up with one of my friend son , she doesn’t have any family in australia , she was only relying to a friend of mine helping her with her son while she’s at work or anytime she need baby sit her son. This woman passed away due to cancer , she did not have any Will , she wrote letter about her asset but only by hand writing and it’s not legal as she did not get through lawyer. Is my friend has legal right to use her bank account to use for the expenses of her death ?
Hi Ghodaiva,
For personal advice on this situation we advise you to speak with an estate lawyer or solicitor.
Thanks,
Alison
My father passed away 2 weeks ago. No will. Trying to get things sorted. I am the next of kin-Being the eldest daughter. I have spoken with his bank and I believe they have frozen his account, as I requested. What do I need to do, what documents do I need to close out my daddy’s bank account? I do know I have to have his death certificate and my license; anything else?
Hi Jessica,
I’m sorry to hear about your father.
Yes, you’re correct, a death certificate is needed. In some cases, a letter of administration might be needed. If you need further details, you might want to get in touch with your bank.
Regards,
Alison
Can a next of kin get access to the bank statements of their father’s bank account after he dies?
Hi Nick,
Yes, that’s possible through a will. If there’s no will, the assets would be given to the next of kin or estate administrator.
It is best you get legal advice in this matter.
Regards,
Alison