Bank accounts

[Anongirl]

Hi, not been here for a while!

Mum has declined significantly. Waiting for the doctor today but I think I know what he is going to say. I can tell she has given up.

Been up all night with things going around my mind.

I have power of attorney and access to mum’s bank account. I’m worried that I won’t be able to access this when she passes away. I will need to use the money to arrange the funeral, etc. Did people move money before the worse happened or simply withdraw the money afterwards? I’ve read the power of attorney is lost after death and accounts will be frozen.

I feel like I just need to get arrangements in order to make it a little less traumatic when the time comes

 

[Louise7]

You"re right, power of attorney ends when the donor passes away. I haven't been in this position yet but there have been a few posts here about how banks have frozen accounts but have released funds for a funeral on receipt of a death certificate and invoice from the undertaker. It may vary from bank to bank though.

 

[marionq]

I would pay for the funeral before announcing that she has died but there may well be better ways of doing it. Pre arranged funeral plan would be one. Discussion with the bank about the best way to do it would be another. I seem to remember that when organising the funeral of one of my BILs we were told to go ahead and organise and bring in the invoice for the bank to issue a cheque. John had a lot of brothers so I don't recall the details.

 

[Anongirl]

So what happens with the money in her account afterwards? I know her wishes are for it to me shared between her children and grandchildren. She has no will.

Is it best to transfer all the money out now or could I get in trouble for this?

 

[marionq]

Until your mother dies the money is hers. Do not move it. Are you talking about a few thousand, tens of thousands? Are the family in agreement about what should happen once she dies? It is amazing how upset people can be over money.

Have all her outstanding debts been cleared? I do recall I got the run around from utilities and TV suppliers when trying to close down my BILs accounts so look carefully at everything which is still in her name and deal with them now if you can.

 

[Anongirl]

Until your mother dies the money is hers. Do not move it. Are you talking about a few thousand, tens of thousands? Are the family in agreement about what should happen once she dies? It is amazing how upset people can be over money.

Have all her outstanding debts been cleared? I do recall I got the run around from utilities and TV suppliers when trying to close down my BILs accounts so look carefully at everything which is still in her name and deal with them now if you can.

Yes everything is in order. She’s in a carehome. She’s just being paid her pension. There is only my brother and me and he is happy for me to sort everything out. My children are young and I would put the money into their Trust Funds.

 

[Anongirl]

Yes everything is in order. She’s in a carehome. She’s just being paid her pension. There is only my brother and me and he is happy for me to sort everything out. My children are young and I would put the money into their Trust Funds.

There’s £20,000

 

[Bod]

Upon death the Power of Attorney ends.
The work of the Executor starts. It is their job to deal with the estate of the deceased, which means paying all outstanding bills including the funeral expenses.
Banks are permitted by law to pay funeral costs direct to the Undertakers.
If you have a Joint account with the deceased, then all the money in that account is at the disposal of the surviving account holder.(subject to required signatory arrangements, either can sign, or both needed.)
Lack of a will, just means someone has to apply for Letters of Administration, if the estate is big enough.

Bod

 

[Beate]

I went to the bank with ID, a death certificate and the funeral director's bill. They wrote me a cheque for the bill to the funeral director, and then they wrote another for the rest of the money to myself, because I had been the attorney. Now, I don't think you can do this with £20,000, but if the estate is under £5,000, you don't need probate, so that's just what they did. I was amazed at how easy it was! In any case, they will always release funds for the funeral on presentation of invoices, because funeral directors can't afford to wait around for probate!

I had actually used his account after his death but before telling them to pay for the death certificates, and they told me that was fine as they hadn't known at the time. I had also consolidated a few accounts to make access easier, and they just shrugged their shoulders. "You were attorney".

 

[jugglingmum]

Each bank has it's own limits at which it will release funds, without probate, so it might be that your bank will release the monies to you once the funeral has been paid.

This article from the summer might help you:

https://www.co-oplegalservices.co.uk/media-centre/articles-may-aug-2018/bank-limits-for-probate/

If you aren't going to need probate, I wouldn't worry about it now.

 

[Delphie]

Two points to remember. The first thing is that each bank or financial institution has its own level under which funds can be released without probate. NatWest for example, from memory, set the level at £15,000. I think it might be more for HSBC. So check with the bank you're dealing with. The second point is that funeral expenses sit outside of the estate so even if you do need to apply for probate you won't have to wait to pay for the funeral. An invoice from the undertaker is enough.

Hope that puts your mind at rest during this difficult time.

 

[Anongirl]

Thank you all so much xx

I had a look at her account and my name is at the top of the screen page, there’s no mention of mum on the account. Is that what happens when they accept power of attorney on an account?

 

[jugglingmum]

I don't do online banking for my mum (yet) but I do know that some of her bank/investment statements come addressed to me and then further down the page as power of attorney.

If you are listed on the account as POA, it is not a joint account but you are standing in your mum's shoes to operate the account on your mum's behalf, so when she dies it will be frozen until such time as you fulfil the banks requirements probate or death cert depending on limits

 

[Anongirl]

Well I went to the bank today and they were very helpful.

I transferred some money out today and he said after she passes it will go to the next of kin, who is me. He said it should be fine.