What happens to a bank account after death in Australia

When an Australian bank is notified that a customer has died, the account moves onto a set of well-worn tracks. Knowing what happens, and in what order, makes the first few weeks a lot less bewildering for the people left behind.

Notifying the bank

Any family member or executor can notify the bank. You do not need to be on the account. Most Australian banks now have a dedicated bereavement team you can call, and they will ask for a certified copy of the death certificate before they can act.

What gets frozen

The bank freezes accounts held in the sole name of the deceased. That means:

• No withdrawals or transfers, even by the executor, until probate.
• Direct debits are stopped.
• Cards are cancelled.
• Cheques stop clearing.

The bank will usually pay reasonable funeral expenses directly to the funeral director from the frozen account on presentation of an invoice.

Joint accounts

Accounts held in joint names normally pass to the surviving account holder under the right of survivorship. The bank will remove the deceased name from the account, and the survivor keeps full access. The account is not frozen.

Direct debits and incoming payments

Salary, pension, and Centrelink payments received after death may need to be returned. Direct debits for utilities, subscriptions, and insurance continue to try to pull funds from a frozen account and will fail, so contact those providers early to avoid missed-payment fees.

When probate is required

Most Australian banks have a threshold, typically between $20,000 and $50,000, above which they will not release funds without a Grant of Probate or Letters of Administration. Below the threshold, a bank may release funds to the executor on the strength of the death certificate, will, and a signed indemnity.

What the executor needs

• Certified copy of the death certificate.
• Certified copy of the will.
• Grant of Probate, if required.
• Executor identification.
• Details of where the funds should be paid.

Making it easier in advance

You cannot pre-authorise anyone to access a sole account after your death, but you can make life easier by keeping a written record of every bank account, the branch, the type of account, and any linked cards. Your executor will not need the passwords, only the map.