What happens to my bank account if I die?

Whether you're worried about what will happen to your money, or someone close to you has passed away, it is important to know what happens to bank accounts when someone dies. There are processes in place to help make this difficult time run a little easier, regardless of whether there is a will involved or not.

What will happen to my bank account if I die?

In the event of death, the deceased's bank accounts are closed by the bank. Before that, any remaining money will be paid out in line with what was requested in their will, which is a legally binding document outlining who gets the deceased's assets following death.

If there is no will, ownership of the account and its assets will be transferred to the next of kin or estate administrator. It's important to note that any credit card debt or personal loan debt will be paid from the deceased's bank and savings accounts before the account administrator takes control of any assets.

If you don't yet have a will created, you can get started making a will on the Service NSW website online.

How do I claim a bank account when someone dies?

If someone you know has passed away, one person will need to be nominated as the executor of the will. They will need to contact the bank to start the process of settling the deceased's bank accounts.

The bank will then send a letter advising of next steps. But before the deceased's estate can be settled and their bank accounts closed, the financial institution needs documents showing proof of death, and identification from the next of kin proving their authority over the deceased's estate.

Required documents for proof of death

The following documents must be provided before the financial institution can close or transfer ownership of the account(s):

• A death certificate
• Letter of Administration (if applicable)

Some financial institutions will accept the following, or a combination of the following documents as proof of death:

What happens to a bank account if someone dies without a will?

If the deceased has not left a will, a spouse or next of kind can apply for a Probate/Letter of Administration from the state or territory's Supreme Court. As an estate administrator, this person will be responsible for collecting all the assets, paying any debts, and then distributing assets to the beneficiaries.

The Probate/Letter of Administration needs to be provided to the financial institution along with the death certificate.

Once the financial institution has all the information it needs to satisfy its requirements, if the account is held solely in the name of the deceased, account access is restricted, a certificate of balance is issued, the money will be paid out, and the account is closed.

Frequently asked questions about deceased estates

What happens to joint bank accounts?

If the bank account is held jointly, ownership of the account will be transferred to the other primary account holder. The account will continue to function as normal.

What happens to credit card debt?

If the deceased has credit card debt or personal loan debt, the balance of these debts will be paid from the deceased’s transaction and savings accounts before the funds are released.

What happens to term deposits?

A term deposit investment can be released before the date of maturity once the financial institution gets all the necessary paperwork, declaring the person has passed away. Fees and charges are waived and any interest owed on the investment is paid.

What happens to my home loan if I die?

To find out what happens to your home loan in the event of your death, we suggest you read our guide on this topic.

How long does it take for an account to be settled and closed?

Financial institutions advise that each case is different. We suggest you contact your financial institution for further information.

Written by

Rebecca Pike

Senior writer

Rebecca Pike is Finder's senior writer for money. She joined Finder after almost four years writing for business publications in the mortgage and finance industry, including three years as editor of Mortgage Professional Australia. She regularly appears as a money expert on programs like Sunrise and Today, as well as across radio and newspapers. She also holds ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products. See full bio

Rebecca's expertise

Rebecca has written 197 Finder guides across topics including:

• Home loans
• Cost of living
• Budgeting