Bank accounts

[Vinotimes]

Can an executor close down a deceased person’s bank accounts, transfer the money to their own bank account and then spend the money themselves? There is a will and a property that needs to be sold with a 2nd executor and beneficiary who have not yet seen any money.

no they can't. The others should go to a solicitor and get them to assist

No, the bank freeze the account so can't pay out except for funeral costs. Any inheritance will be paid once the accounts are finalised, tax paid, bills paid etc. If someone is doing this then contact the banks fraud department, have the bank been notified of the death, they need to see a death certificate,

Why is the second executor not jointly involved in the probate process? My understanding is executors must act jointly unless one or more have reserved powers by completing the appropriate forms.

The beneficiary is not involved at this stage.

I have a feeling the one executor is trying to pull the wool over the eyes of the second executor. Luckily the people will get their money once probate is involved as they will want to see the bank account statements to correctly and fairly divide the estate.

It's not just about fairly dividing the estate, taking money out is fraud and affects the estates value which affects tax.

That was my concerns. So has fraud been committed then? I don’t think they realised bank accounts and transactions can be tracked and can be investigated

How much have they withdrawn, what are they spending it on, was it a joint account with the deceased and the executor.

Thousands was withdrawn to a solo account of the executor. It was not a joint account with executor and deceased. They said they haven’t spent it but won’t add the joint executor to the account.

Do the bank know the person has died, has probate been granted yet, what does the will say. The estate is distributed once all the accounts are finalised, tax paid, assets paid, property valued or sold ,debts paid, all according to the will.

The bank know the person has died but probate has not been granted. The will mentions nothing about bank account transferral.

@Vinotimes the second executor needs to remember they are equally liable for any actions of the first executor. I would be getting legal advice asap.

That’s what is stressful. We don’t want the second executor to get into trouble even though they had no involvement in this. They will have to get legal advice.

I would look up the banks policy on closing an account after a death, they usually pay for funeral costs but you need probate to close an account and deal with any finances and this hasn't been granted yet. I'm not sure how the bank allowed someone to close an account and withdraw all the money without probate especially when there are 2 executors. Did they close the account before the person died or after.

They closed the account after death. I have no idea either as I always thought probate would deal with the banks. The bank said if it is a certain amount the account can be closed without probate. I suppose it depends if the executor was truthful and did they say if there was another executor and a beneficiary or they may have not disclosed this. They must not have mentioned there was a property to be sold too.

It can be difficult when you are dealing with relatives and realising that when it comes to money/inheritance people you have known all your life can suddenly behave in a completely unethical way,

You end up trying to be respectful and preserve the relationship so take a softly softly approach and end up in a mess.

My advice is for the second executor to get legal advice from a STEP solicitor who will advise them on how to proceed. All it may take is one firm letter https://www.step.org/directory/members

It depends on the amount in the bank, we managed to close down my DM account without probate. DB and I both went with the will and ID's - DB had to agree to the money being paid into my account....we were both executors.

If the amount was below their banks threshold they may have released the funds but if there are 2 executors they both have to agree and are responsible for each other's action. Without seeing the will the bank would rely on the executors honesty. Like pp says 2nd executor needs legal advice. The first attorney can be removed if they've acted unlawfully.

I think banks will now close accounts of the deceased against an indemnity (i feel sure they have their own internal £ limit for this). When my DM died, Barclays sent me an indemnity to sign so they could pay out the balance of the account. I was very quick to point out to them that as I was not the executor (a professional firm were being used) and I was only 1 of 3 beneficiaries, I did not want to sign the indemnity or receive the funds and that they should deal directly with the executors, who would be applying for probate.