Will new banking protocol speed up probate procedures?

Delays to the probate process is a common cause of frustration and upset for bereaved families. Many of the reasons for the delays arise from the communications between different institutions, and steps have now been taken to tackle the issues. 

The Estate Administration Banking Protocol has been updated for the first time since 2012, with the purpose of reducing delays in dealing with probate and making the administration of estates easier to deal with. 

What is the Estate Administration Banking Protocol?

The purpose of the protocol is to set out a framework of rules governing how probate practitioners and financial institutions deal with each other. The Law Society has confirmed that the purpose of the changes to the protocol is to:

• provide a transparent framework for how financial services and probate practitioners exchange information during estate administration;
• define what information financial services need to verify the authority of a probate practitioner; and
• reduce delays, including by setting a 15 working day aim for responses to initial information requests.

The protocol covers the provision of information regarding bank accounts and credit cards, and other types of loan accounts, confirms how  the identity of legal professionals and others should be verified, and sets out the approach that should be taken when funds are released and accounts are closed. 

How probate works

Probate is the process undertaken by an administrator to wind up the estate of someone who has died. The administrator of an estate can be appointed in someone's will (an executor) or they can become an administrator if there is no will. 

The estate of the deceased person includes any property they own, their bank accounts, loans and credit cards, and all of their personal belongings. 

Financial institutions who hold bank or loan accounts for the deceased need to communicate properly with the administrators of the deceased person's estate in order to ensure that funds are not released to anyone who is not entitled to them. 

What information do banks need after someone dies?

The protocol sets out the information which the administrator of an estate has to give to banks and other financial institutions in order to have funds released and to close accounts. 

First of all, the administrator needs to prove to the financial institution that they have the right to deal with the deceased's estate. In order to do this, the financial institutions require:

• A letter from the law firm on headed paper confirming that the person dealing with the estate is qualified and regulated and is covered by indemnity insurance;
• A certified copy of the deceased's will, or a letter of authority permitting the administrator to deal with the estate;
• Details about the person dealing with the estate, including their name and identification number for the relevant register; and
• Full details of the firm where the administrator works, including the firm's bank account details. 

Secondly, once the financial institution is satisfied that the administrator is allowed to deal with the estate, information will be required about the deceased, as follows:

• An official death certificate for the deceased, (but if there is an unfinished inquest, an interim certificate from the coroner might be accepted);
• If no death certificate is available, the date of birth and death of the deceased must be given;
• The deceased's full name and any other names they used in their lifetime;
• The last known address of the deceased; and
• Full details of accounts including account numbers and sort codes.

What information will banks provide about the accounts of someone who has died?

Where the deceased had a sole account, the bank will provide full details including the balance and information about any recent transactions but funds are generally frozen in the deceased's bank account until probate is granted. The bank will be able to confirm that standing orders and direct debits have been stopped and can close the account. 

Where the deceased had a joint account with another individual, the bank will generally not provide any information, as any money in the joint account becomes the property of the surviving account holder when the deceased passes away. 

If the deceased held a mortgage jointly with someone else, their estate will still be liable for their share of the mortgage, along with the other mortgage holder. 

When do banks release the money of someone who has died?

Banks and other financial institutions often need to wait until probate has been granted before they will close the bank account of the deceased person and release their money to the administrator. The protocol simply requires that funds are transferred "within a reasonable time".

The protocol says that once the administrator has provided all of the information required, within 15 working days it should be possible for the financial institution to respond, confirming how much is in each of the deceased's accounts. 

Abbie Kingdon, senior associate solicitor and head of private client services at Samuels Solicitors LLP says: "I hope very much that the 15 working day recommendation in the protocol will mean a speedier probate process. As most firms working in this area are incredibly busy, we will need to see how this translates in practice, but any steps to help bereaved families at such a difficult time are to be welcomed". 

Get legal help with probate

If you need help to deal with probate for the estate of someone who has died, our experienced and caring team at Samuels will be happy to speak to you. Contact us today for a no obligation discussion about how we can assist you and your family.