When your partner passes away, it can feel like your entire world has been turned upside down – and the last thing you need amidst the grief is to be worrying about money.
But unfortunately, it’s a real and immediate concern for many people, especially those who are uncertain about their legal rights when it comes to accessing bank accounts.
I recently recorded a video to explain the different outcomes for both sole accounts and joint accounts, with the aim of assisting couples with estate planning, as well as helping anyone who might be currently experiencing this situation.
As someone who’s worked with lots of bereaved individuals, I’ve seen that it’s the small, unexpected administrative details like these that catch people off guard – and can often become a huge headache to resolve.
If you need support navigating the financial side of bereavement, I’m here to make the process feel less overwhelming.
Understanding joint bank accounts
If the account is held in joint names – registered in both your name and your partner’s name – and one of you passes away, you will continue to have access. This comes under the ‘right of survivorship’, and means the account essentially transitions to the surviving party, usually after the bank has received the required documentation.
In this situation, you can usually access your money as normal, making any withdrawals or payments you require. Direct debits from the joint account will generally continue, although it’s worth checking all regular payments with the bank and individual service providers.
This option is helpful in the initial stages of grief, as it requires minimal administration and can help avoid a disruption to cash flow.
Unfortunately, I have heard stories of banks making this more difficult than it should be due to their own, internal (and complex) processes. But as a whole, if you have a joint account, you should generally expect full account ownership to be transferred to you.
The limitation of sole bank accounts
A sole bank account can cause more challenges.
In the event your partner passes away leaving one or more sole bank accounts – accounts registered in their name alone – these will be frozen by the bank to protect the person’s estate.
(It’s worth noting that this will only happen after the bank has been notified of the death.)
Freezing the accounts can seem like an extreme step, but the banks aren’t doing this to be difficult – they restrict access to protect the funds while the estate is being administered. Depending on the estate and the documents required, gaining access could take weeks or even months.
Naturally, this can cause enormous stress for you if this has been the primary bank account, and you’re relying on those funds for bills, mortgage payments and other living expenses.
You’re already grieving the loss of your other half, and this financial uncertainty makes an already challenging time even harder.
However, banks may release funds directly for certain estate expenses, including funeral costs, when the required documentation is provided. Some may also release smaller account balances without a grant of probate or letters of administration, although thresholds and requirements vary between banks.
It’s not the same as the full access that comes with a joint account, but it can absolutely be helpful if money is tight.
My advice to couples
Here at PlanningSolo, my advice to couples is simple: consider how either partner would continue paying essential household expenses if the other died.
Depending on your circumstances, that might involve using a joint household account, maintaining an accessible emergency fund, and ensuring both partners understand how regular bills are paid.
It’s a small piece of life admin that will make a huge difference down the track.
If you have any questions or concerns about the intricacies of managing your finances after a bereavement, I’m always here to help. Book a call here.
Want to know more? Read my articles “What happens to the money after a loved one dies” and “Why I hold myself to a higher standard when you’re at your most vulnerable.”
