An executor appointed in a deceased person’s Will has the legal authority to deal with that person’s assets following their death. Each estate is unique in terms of the assets it is made up.
Once the assets have been identified and valued, if a Grant of Probate is required, the executor will not immediately be able to collect in and distribute those assets.
What Happens to Bank Accounts During Probate?
Once a Bank or Building Society has been notified of a bereavement, the accounts will be frozen and no further payments will be made from the deceased’s assets. It is important for the executors to review any direct debits or standing orders which were being paid from the deceased’s funds and ensure that the recipients of those payments have been notified of the death.
Whilst, overall, payments cannot be made from a bank account once it has been frozen, most banks and building societies will pay a funeral invoice directly to the undertakers. Funds will also generally be made available to cover the Inheritance Tax bill, notwithstanding that an account may be frozen.
Each financial institution will have its own threshold for when they would require sight of a Grant of Probate prior to releasing funds. Where a bank is willing to release the funds prior to the Grant of Probate being obtained, executors should exercise caution in considering any interim distributions to beneficiaries to ensure that all debts of the deceased and expenses of the estate can be met.
What Happens to Property During the Probate Process?
Where the deceased owned a Property in their own name, or a share of a Property as tenants in common, a Grant of Probate will be required before the Property can either be sold or transferred into the name of the beneficiary.
During the period between the date of death and when the ownership of the Property has changed hands, the Executor will be responsible for securing and safeguarding that asset.
The Executor will need to notify the existing buildings insurance provider that the owner has passed away and whether the property is unoccupied. Some insurance providers will not continue to provide cover following the customer’s death, and in those cases, the Executor will need to arrange cover with a new provider.
In the case of unoccupied properties, Executors will need to review the insurance policy wording carefully and observe any additional requirements relating to the utilities and any required frequency of attendance at the Property.
Probate and Estate Administration Advice
Dealing with assets during the probate process can be complex, particularly when managing financial accounts, property, and legal obligations at the same time.
At Fiona Bruce Solicitors, our experienced team can guide executors and families through every stage of estate administration, helping to ensure that assets are handled correctly and efficiently. Whether you need support with obtaining a Grant of Probate, managing estate assets, or understanding your responsibilities as an executor, we are here to help.
The contents of this post do not constitute legal advice and are provided for general information purposes only ■
