How long does it take for a bank account to be blocked after the death of the account holder? The question of what happens to a bank account or accounts in the event of death is far from rhetorical, and can prove decisive not only for the heirs, but also for creditors and, more broadly, for the management of the estate.
Quick answer: obviously, the blocking does not take place on the day of death. As soon as the bank is informed of a person's death, it blocks the deceased's bank accounts so that they can no longer operate normally. Blocking is not automatic in the event of death. The heirs must take steps to obtain information about the future of the bank accounts.
Time to notify the bank of the death
There is no way for the bank to be immediately notified of the death of the account holder. This information may therefore come from a number of different sources:
- The family or beneficiaries : it is in their interest to notify the bank if they wish to avoid fraudulent use of the deceased's accounts. To do this, they should request a death certificate from the registry office, which will be sent to the bank.
- The notary in charge of settling the estate: the notary appointed to administer the settlement of the deceased's estate must, in particular, keep the banking establishments in which the deceased had opened an account informed. The notary must also draw up an inventory of the deceased's assets so that a deed of notoriety can be drawn up.
- The tutor or curator in the event of a protective measure : if the deceased was a protected adult within the meaning of the articles 425 et seq. of the civil codeIn this case, the information is likely to come from the tutor or curator.
There is also no legal deadline for notifying the bank. However, some banks require that they be informed within a contractual period of one month. Once the bank has been informed, it takes steps to secure the deceased's accounts.
The bank may also never be informed, for lack of an heir or manifestation of those existing. The law of 13 June 2014 provided for such a configuration, which is settled at the same time as all inactive accounts. In accordance with Articles L.312-19 to L.312-21 of the Monetary and Financial Code, the bank must make an annual inventory of inactive bank accounts. Inactive accounts are defined as those that have not recorded any transactions for twelve consecutive months and for which neither the heirs nor the notary have been notified.
It must also consult annually the data contained in the National Register of Identification of Natural Persons relating to the death of registered persons.
The funds in the account must be transferred to the caisse des dépôts et consignations three years after the death of the account holder.
General blocking of deposit account (or current account) accounts
On receipt of the copy of the death certificate, the bank will update and stop the operation of the deceased's accounts.
The aim is to protect the interests of the heirs to the estate until an inventory of the deceased's assets can be drawn up.
On a practical level, and in general, all banking operations are suspended as a matter of principle:
- deposits are no longer registered;
- withdrawals, direct debits and payments by bank transfer or credit card are prohibited as a matter of principle.
Contrary to what one might think, the ceiling on spending authorised to meet immediate expenses is not a legal protection but merely a contractual favour that banks are free to include in their contractual stipulations or not. A limit of €5,000 can be found in a number of account agreements.
However, the account is not automatically closed, particularly if the bank and the heirs agree to take over the account.
Otherwise, if the heirs do not consent to the bank account being taken over, the direct debit mandate given by the deceased terminates with his death, in accordance with the provisions of thearticle 2003 of the civil code. In this regard, it was ruled that a bank could not make direct debits from a bank account to settle loan instalments after the death of the deceased and that, in the absence of ratification by the heirs, the direct debits made were irregular (CA Aix en Provence, 8 June 2017, RG no. 15/08979).
The specific operation of joint and undivided accounts
Often confused, the joint account and the undivided account have in common that they organise joint ownership of the bank account. However, whereas a joint (or collective) account requires the agreement of all the joint holders for its operation, unless one of the joint holders is given a management mandate, a joint account is based on the principle of flexibility, and each of the joint holders can arrange for the account to be operated without the prior agreement of the other.
In the case of an undivided account In this case, the blocking situation of the deposit account agreement is repeated, since the normal operating mode requires the agreement of all the undivided co-owners.
In the case of a joint account Two people have held the bank account since the policy was taken out, and now only the surviving joint holder remains. The consequence of joint ownership is that the survivor can continue to operate the account under his or her signature alone, unless the contract provides for a temporary freeze and/or the heirs or notary object to the account continuing to operate. As for the bank, it must comply with the rules of active solidarity, which are set out in thearticle 1311 of the civil code. It must therefore obey the co-owner.
To be sure of the blocking arrangements, you should therefore refer to the general terms and conditions of the deposit account agreement.
The practical implications of freezing a bank account
The practical implications vary according to the situation in which the protagonists find themselves:
- The surviving holder of a joint account : for the surviving owner, it is above all a question of continuing to be able to meet expenses, particularly when the death is sudden. They may also be threatened by the deceased's heirs with having to account for their management. This is why some banks include a temporary freeze in their terms and conditions, regardless of whether the account is a joint account.
- The heirs The heirs may have an interest in continuity of operation in order to meet funeral expenses and their loved one's debts. On the other hand, they may want to prevent the surviving account holder from emptying the account.
It is therefore easy to understand the issues underlying the question of freezing the account, and with them the role of the notary.
The notary's supervisory role
The notary's task is to draw up an inventory of the deceased's assets, including funds in bank accounts, in order to distribute them among the heirs in accordance with legal or testamentary provisions.
It must therefore request an accounting statement from the banks concerned to enable it to determine the positive or negative balance of each of the accounts.
In the case of a joint account, the notary may ask the bank to freeze the account if this is not provided for in the contract. In this case, he will lodge an objection with the bank.
Once this stage has been completed, the notary can instruct the bank to release the funds, which will then be distributed to the heirs in accordance with the devolution of the estate.
Conclusion
In short, the length of time before a deceased person's bank account is blocked depends mainly on how quickly the bank is informed of the death. This blocking is generally immediate once the official notification has been received, with the exception of certain specific situations such as joint accounts.
This mechanism is designed to secure the deceased's funds with a view to the distribution of the estate. It is therefore essential for the heirs to get organised quickly to manage this transitional period until the funds are released by the notary.
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