Accessing joint bank accounts when a loved-one dies
There are many practical and financial matters to consider amidst the emotional strain of losing a loved-one, particularly a spouse or partner. One question we are frequently asked by clients is whether they can still access joint bank accounts after one of the joint signatories on the account has passed away.
Typically, the “principle of survivorship” applies with joint bank accounts, so that the account ownership passes in its entirety to the surviving joint account holder. This principle of survivorship is entrenched in Australian common law, and it overrides any terms that may be to the contrary in the deceased’s will.
This means the surviving account holder can notify their bank immediately upon the death of their spouse without worrying about the bank freezing access to the money in that account. The surviving spouse will typically need to present the deceased’s death certificate to their bank and the bank will usually transfer the account balance into the survivor’s sole name, while allowing the surviving account holder to continue to use the joint account.
This can happen before probate has been granted and regardless of whether the surviving account holder is the deceased’s executor or even has a financial Power of Attorney. Clients are often under the impression that a Power of Attorney will be needed, but this is generally not the case.
The first step is to contact your bank and see what process (if any) is required, but in most cases, a joint bank account and its remaining funds will automatically become the property of the sole survivor.
For more information on accessing joint bank accounts when a loved-one dies, follow the below links or speak directly with your bank.
Westpac
NAB
https://www.nab.com.au/personal/life-moments/unplanned/losing-loved-ones/account-impacts
ANZ
https://www.anz.com.au/content/dam/anzcomau/documents/pdf/deceased-estates-brochure.pdf
Commbank
https://www.commbank.com.au/support/deceased-estates.html
There are many more financial matters for consideration at this difficult time. For more information and support, please reach out to your FMD adviser.
General advice disclaimer: This article has been prepared by FMD Financial and is intended to be a general overview of the subject matter. The information in this article is not intended to be comprehensive and should not be relied upon as such. In preparing this article we have not taken into account the individual objectives or circumstances of any person. Legal, financial and other professional advice should be sought prior to applying the information contained on this article to particular circumstances. FMD Financial, its officers and employees will not be liable for any loss or damage sustained by any person acting in reliance on the information contained on this article. FMD Group Pty Ltd ABN 99 103 115 591 trading as FMD Financial is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977. The FMD advisers are Authorised Representatives of FMD Advisory Services Pty Ltd AFSL 232977. Rev Invest Pty Ltd is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977.