If a deceased customer had any joint personal accounts, the accounts will usually be transferred into the remaining account holder's name and they will be able to access any money in them.
A bank can only take instructions about a deceased person's accounts from someone authorised to act on behalf of the deceased's estate.
This means next of kin and estate beneficiaries cannot give instructions to a bank or require a bank to give them information about a deceased person's bank account.
The legal process is usually to obtain probate or letters of administration from the High Court.
This allows executors or administrators to deal with the deceased's property, including his or her bank accounts.
However, if the deceased has no will and the estate is worth less than $15,000, the bank may forward money in the deceased's accounts to his or her next of kin.
But the bank must be satisfied the person is dead and that no application has been made to the High Court to administer the estate.
In such circumstances, the bank will probably want to see a copy of the deceased's death certificate and information about the next of kin.
Even then, the next of kin may not necessarily be entitled to information about the deceased's accounts, and may have to seek letters of administration from the court in order to access that information.
When a customer dies, all signing authorities on that person's accounts and any power of attorney authority are no longer valid.
For free and confidential advice and information on this or any other matter visit the Palmerston North Citizens Advice Bureau (CAB) in Hancock Community House, 77 King St.
Opening hours, Mon-Fri from 9 am-4.30 pm, call 357 0647 or 0800 367 222. We have a free legal advice service by qualified lawyers most Thursday evenings at 7.30 pm, and a JP is available on Tuesdays from noon–2.30pm.
No appointment is necessary for either of these services.
