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Accessing a deceased person's bank account

Can a bank relase funds from a deceased person's bank account to pay her tax?

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A bank can and will pay funeral costs out of the bank account of a deceased person before probate is granted.

Can they - and will they - do that to pay a tax liability?

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By Cloudcounter
24th Jul 2018 10:29

Why not ask the bank?

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Replying to Cloudcounter:
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By Jack Spratt
24th Jul 2018 10:56

Because I have no standing with the bank. One of the named executors has operated a power of attorney for many years and as such has operated the bank account. He has not contacted the bank despite my suggesting he should. I am hoping for a bit of ammunition to fire at him.

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Replying to Jack Spratt:
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By Accountant A
24th Jul 2018 12:02

Jack Spratt wrote:

Because I have no standing with the bank. One of the named executors has operated a power of attorney for many years and as such has operated the bank account. He has not contacted the bank despite my suggesting he should. I am hoping for a bit of ammunition to fire at him.

Who is it you are acting for?

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Replying to Accountant A:
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By jantill
24th Jul 2018 17:17

At death the LPA ceases and the Attorney can no longer access the bank account of the donor.
If you are the personal representative (probably an executor) you should talk to the bank.
I was Attorney for my mother under her LPA and also executor of her will. Probate was not required by either bank (and there was no property to deal with) and one (Nationwide) paid the small balance into my account and the other (HSBC) after three weeks is still thinking about it but I expect in the fullness of time will pay the balance into my account.

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By claudialowe
24th Jul 2018 10:30

From my personal (not professional) experience, no they won't. It is only funeral costs and IHT that the bank will pay. There is no harm in asking though, particularly if it will cause hardship to whoever else might have to pay. Alternatively explain the problem to HMRC - they might surprise us :-)

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Replying to claudialowe:
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By lionofludesch
24th Jul 2018 12:33

In what circumstances would anyone else need to pay ?

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By claudialowe
24th Jul 2018 13:06

Because (in my case) the tax was due, and my brother and I didn't want interest to accumulate on the unpaid amount.

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By Marion Hayes
24th Jul 2018 15:25

Are you sure it's payable yet?
Death moves the due date to either 28 or 30 days after probate is granted. I can't remember which. This is because no-one has the power to pay until probate is granted.

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Replying to Marion Hayes:
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By Jack Spratt
24th Jul 2018 17:15

Marion
That is really interesting and could be relevant but I can't find any reference to it on the HMRC website.
Do you have any links or similar please?
many thanks

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By Mitch
25th Jul 2018 10:41

The due date is the later of the normal due date or 30 days after grant of probate.

See the "Concessional dates for interest" section in the following link. https://www.gov.uk/hmrc-internal-manuals/self-assessment-manual/sam90010

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Replying to Mitch:
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By Jack Spratt
25th Jul 2018 11:58

Mitch
Brilliant - thank you - that is exactly what I was looking for.

many thanks
Jack

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