What happens to a bank account when someone dies in the UK: payments, frozen accounts, and what gets refunded

When a UK bank or building society is told that an account holder has died, the account is usually frozen the same day. Direct debits and standing orders are cancelled. Joint accounts are an exception and pass to the surviving holder. For sole accounts above the bank's small estates threshold, you will need a Grant of Probate before the funds can be released or transferred.

That is the short answer. The longer answer is more useful, because it covers the things families actually trip over: payments that keep going out before the bank is told, refunds of unused subscriptions, what happens to the deceased's debit card, and how to recover money taken from the account after the date of death.

This guide covers what happens to a bank account when someone dies in the UK, in the order it usually happens.

When the bank should be notified

There is no legal deadline for telling the bank, but the account stays active until you do. Direct debits keep going out. Subscriptions keep renewing. Any standing orders the deceased had set up to pay bills, transfer money or fund a savings account keep running.

Most families notify the bank within two to four weeks of the death. That is later than people expect. The reason is practical: you usually want to identify all of the deceased's accounts, statements and direct debits before contacting any of them, because each contact triggers paperwork and a freeze. If you contact one bank before you have a complete picture, you will end up duplicating work.

The bank's bereavement team is the right contact, not your usual branch or banker. Every UK bank has a dedicated bereavement team. They will accept either a death certificate or a Certificate of the Fact of Death (the interim certificate issued by the coroner) as proof.

What happens to a sole account when the bank is notified

Once the bank's bereavement team has confirmed the death, three things happen in quick succession:

• The account is frozen. No more transactions can be made. The debit card is cancelled. Online and mobile banking access is closed for everyone, including any third party who had been operating the account.

• Direct debits and standing orders are cancelled. The bank cancels every payment instruction it has on file. Any payment that has already been triggered before the cancellation will usually still go out and may need to be reclaimed later.

• The balance is held until probate. If the balance is below the bank's small estates threshold, the bank will release it on production of a death certificate, the will, and a small estates form (sometimes called an Indemnity Form). If it is above the threshold, you need a Grant of Probate or Letters of Administration before the funds can be moved.

The small estates threshold varies by bank. Most of the major banks sit between £15,000 and £50,000. Barclays will release up to £50,000 on a small estates form. NatWest, HSBC and Lloyds vary by case. Building societies are often more flexible. It is worth asking the bank directly rather than assuming.

What happens to a joint account when one holder dies

A joint account works on the principle of survivorship in most cases. When one holder dies, the funds in the account automatically pass to the surviving holder. Probate is not needed for the account itself, even if probate is needed for other parts of the estate.

The bank will usually:

• Remove the deceased's name from the account

• Reissue a new debit card and chequebook in the survivor's name

• Continue all direct debits and standing orders on the surviving holder's instruction

• Provide a final statement showing the position at the date of death (useful for inheritance tax calculations)

The surviving holder needs to provide a death certificate to formalise the transfer, but they retain access to the account in the meantime. Any direct debits and standing orders that the surviving holder still wants in place can be left running.

Two important exceptions:

• If the account was held as "tenants in common" (rare for current accounts but not unheard of for savings), the deceased's share forms part of the estate rather than passing automatically.

• If both joint account holders die at the same time or in close succession, the account is dealt with as part of the estate of the second person to die.

Direct debits, standing orders and ongoing payments

This is where money tends to leak. Bereavement administration cases routinely show £200 to £600 a month of payments leaving the account before notification: streaming services, gym memberships, software subscriptions, magazines, charitable donations, mobile contracts, broadband and so on.

There are two reasons for the leak. The first is that the account stays open and active until the bank is told. The second is that even after the bank is told, some merchants will keep trying to take payment, especially for subscription services where the merchant initiates the request.

Here is what happens to each payment type:

Direct debits

A direct debit is a payment the merchant pulls from the account when due. Once the bank is notified of the death, all direct debits are cancelled. Any direct debit that had already been processed before notification has gone, but you can claim it back under the Direct Debit Guarantee if it should not have been taken (for example, if it covers a service the deceased never used). To claim, contact the bank, not the merchant. The Direct Debit Guarantee gives a full and immediate refund of any unauthorised or incorrect payment.

Standing orders

A standing order is a payment the account holder set up to leave the account on a fixed date. These are also cancelled when the bank is notified. Unlike direct debits, you cannot reclaim a standing order under the Direct Debit Guarantee because it was authorised. If a standing order is paying a bill that no longer applies (rent on a vacated property, contributions to a savings account that has been closed), you may need to negotiate a refund with the recipient directly.

Card-on-file subscriptions

Subscriptions that take payment from the deceased's debit card (Netflix, Amazon Prime, App Store, Spotify, Microsoft 365 and so on) are not stopped by the bank. The bank cancels the card, which means new payments will be declined, but the merchant's record of the subscription remains. The merchant will keep retrying until either the subscription is cancelled directly with them, or they give up after several failed attempts.

If the deceased had a card-on-file subscription that has been running for years, you may need to contact the merchant to cancel and request a refund of any payment taken after the date of death. Some merchants are more cooperative than others. Apple and Google have specific bereavement processes. Streaming services usually require the executor to log in and cancel.

Buy now, pay later accounts

Klarna, Clearpay, Zilch and similar services are not direct debits. They are short-term credit. If the deceased had outstanding balances, the executor needs to contact each provider directly. The debt forms part of the estate and is paid from estate funds.

Refunds of unused services

Some refunds happen automatically. Most do not.

The DVLA refunds unused vehicle tax automatically once Tell Us Once is processed. TV Licensing will refund unused months but you have to apply for the refund. Council tax can usually be backdated to the date of death and refunded. Insurance policies may pay out partial refunds for the unused portion of the term. Subscriptions that have been paid annually (most software, magazines, professional bodies) can sometimes be refunded pro-rata if you contact the provider with proof of death.

For each, you usually need to ask. Most providers will not chase you with a refund. Set aside an afternoon to write to anyone who has taken payment for a service the deceased will not use, and you will recover more money than the time costs.

Paying for the funeral from the deceased's account

Many families assume the deceased's bank account cannot be used at all once it is frozen. That is not quite right. Most UK banks will release funds for two specific purposes before probate:

• Funeral costs (paying the funeral director directly, on production of an invoice)

• Inheritance tax (paid to HMRC directly)

To do this, you contact the bank's bereavement team and ask for a "release of funds" or "direct payment" arrangement. The bank pays the funeral director or HMRC directly from the frozen account. The funds do not pass through your hands or the executor's hands, which keeps the bank within their fiduciary duty.

This applies even when the estate would otherwise need probate. It is worth asking the bank early, especially if the surviving family is not in a position to fund the funeral up front.

ISAs, savings accounts and investments

ISAs of the deceased benefit from a specific provision called the Additional Permitted Subscription (APS) allowance. This means the surviving spouse or civil partner can inherit the ISA's tax-advantaged status equal to the value of the deceased's ISA, on top of their own ISA allowance. The APS allowance can be used for up to three years after the death, or 180 days after probate, whichever is later. Our guide on what happens to an ISA when someone dies covers this in more detail.

To claim the APS, the surviving spouse contacts an ISA provider (it does not have to be the same one that held the deceased's ISA) and applies. The deceased's ISA itself stays open as a "continuing account of a deceased investor" and continues to grow tax-free for up to three years from the date of death.

For other savings accounts (non-ISA), the balance forms part of the estate and is dealt with in the same way as a current account: frozen, then released either on a small estates form or after probate.

For investment accounts (stockbroker accounts, fund platforms), the process is similar but slower. Investments are usually held by a custodian rather than the broker directly, and the transfer process can take three to six months even with probate in place.

For NS&I products (Premium Bonds, Income Bonds and so on), contact NS&I directly. They have a dedicated bereavement service. Premium Bonds remain in the prize draw for up to 12 months after death, after which they have to be cashed in. Our guide on what happens to Premium Bonds when someone dies covers the process in more detail.

What happens to a credit card

Credit cards are different from current accounts because the balance is a debt of the deceased, not an asset. When the credit card provider is notified:

• The card is cancelled

• The outstanding balance is frozen (no further interest or fees in most cases, though policies vary)

• The debt is collected from the estate before any inheritance is distributed

If the credit card was a joint card, the position is not the same as a joint bank account. Most "joint" credit cards are actually a primary cardholder with a supplementary card. The debt is the primary cardholder's debt. If the deceased was the primary cardholder, the debt sits with the estate. If the deceased was a supplementary cardholder, the debt remains with the surviving primary holder.

If the estate is insolvent (debts exceed assets), unsecured creditors including credit card providers receive a proportionate share of what is available. The executor is not personally liable for the deceased's unsecured debts.

Recovering payments taken after the date of death

If a payment has left the deceased's account after the date of death, you may be able to reclaim it. The position depends on what kind of payment it was:

• State Pension and most DWP benefits stop at the end of the week in which the person dies. Any payments made after that need to be repaid to the DWP. Tell Us Once notifies the DWP, and they will calculate any overpayment automatically.

• Direct debits can be reclaimed under the Direct Debit Guarantee if they were taken after the date of death.

• Standing orders are harder to reclaim because they were authorised by the deceased while alive. You may need to negotiate with the recipient.

• Card payments (debit or credit) are not usually reclaimable from the bank, but the merchant may refund them if you ask.

• Payments into the account (final salary, pension lump sums) are usually retained by the estate.

The general principle: anything the bank can identify as authorised by the deceased before death is treated as the deceased's payment. Anything triggered by an automated process after death may be reclaimable.

Using the Death Notification Service

The Death Notification Service (DNS) is a free service operated by Equiniti in collaboration with UK Finance and a number of UK financial institutions. It allows you to notify multiple banks and building societies of a death in one notification. More than 40 financial firms are signed up, including most of the major UK banks.

The DNS is a useful first step but not a complete substitute for contacting individual banks. Some banks are not signed up. Some require additional documentation that the DNS does not handle. And the DNS will not deal with credit cards or insurance policies.

For a full breakdown of who is signed up and how to use the service, see our companion guide on the Death Notification Service.

What to do if you find an account after probate

Sometimes accounts surface months after probate has been granted: a dormant savings account, an old building society passbook, an ISA the deceased had forgotten. The position depends on the size of the discovery.

For small balances, most banks will release them on production of a death certificate, the original Grant of Probate, and an indemnity from the executor. For larger balances, a "supplementary grant" or "deemed grant" may be needed, which adds the new asset to the original probate.

The Dormant Bank Accounts Scheme operated by My Lost Account can search for forgotten accounts at major UK banks and building societies. If the deceased had accounts you cannot find, this is a useful first step.

Common questions

Can I use the deceased's bank card to pay for the funeral? No. Using a deceased person's bank card is illegal regardless of intent. Contact the bank's bereavement team and request a direct release of funds to the funeral director.

Will the bank tell me what other accounts the deceased held? Only the accounts they hold themselves. Most banks will list every account the deceased had with that specific bank, which can include forgotten savings accounts. They cannot tell you about accounts at other institutions.

How long can I keep the deceased's bank account open? Until the estate is fully administered. Banks understand that probate, distribution and final accounts can take six to twelve months. Some banks open a specific "executor's account" for handling estate funds during this period.

What happens to overdrafts? An overdraft is a debt of the deceased. It is paid from the estate. If the estate cannot cover it, the bank treats it as an unsecured debt and writes off the unrecovered portion.

What happens to mortgage payments? Mortgage payments are a separate matter from the bank account. If the deceased held a mortgage, it has to be settled or transferred. Joint mortgages with a surviving spouse usually pass to the survivor along with the property, as covered in our guide on what happens to a joint mortgage when one partner dies. Sole mortgages usually need to be repaid from the estate or the property sold. Contact the mortgage provider's bereavement team early.

How Legacy Trail can help

We notify banks, insurers, utilities and subscriptions in one place. We use the Death Notification Service where we can, and contact each institution directly where we cannot. We confirm closures back to you.

If you want to handle the rest of it without contacting every organisation individually, Legacy Trail can do the private sector work in one place. We find the accounts, notify the providers, and confirm closures back to you. The visible part of bereavement admin is hard enough. The hidden part does not have to be.

legacytrail.co.uk