Dealing With Bank Accounts After Death in the UK: From Notification to Closing Worked Through
When someone dies, you notify each bank with the death certificate, and the account is frozen straight away. Whether you can then close it and get the money depends on the balance: most banks release funds below their own probate threshold (often around £25,000–£50,000) on the death certificate and ID alone, but above that they need the grant of probate first. This guide walks the whole journey — notify, freeze, release or wait, and pay any Inheritance Tax straight from the frozen account — with a full worked example.
Step 1: Notify the bank and freeze the accounts
The first job is to tell the bank that the account holder has died. You do not need the grant of probate or even the will to do this — you just need to register the death and get the death certificate (you will normally order several certified copies, because almost every organisation wants to see an original).
As soon as a bank is notified, it freezes the sole account. From that moment:
- No more money can be withdrawn or spent from the account.
- Money still coming in (a final salary, a pension overpayment, refunds) is usually allowed to land.
- Standing orders and most direct debits are stopped — more on the important exceptions below.
- Interest keeps accruing, and the balance is preserved until the estate is sorted out.
You can notify each bank individually through its bereavement team, but there are two free services that save you doing it bank by bank.
The Death Notification Service (DNS)
The Death Notification Service is a free service that lets you notify several member banks and building societies of a death at the same time, using a single online form. After you submit, each member organisation contacts you within 10 working days to tell you what it needs next and what the account balance is. Member firms include most of the large banking groups — check the current member list on the service before relying on it for a smaller provider.
Tell Us Once (for government, not banks)
Do not confuse the DNS with Tell Us Once, which notifies government departments (DWP, HMRC, DVLA, the local council and so on) in one go. Tell Us Once does not tell banks — for those you use the DNS or contact each bereavement team directly. GOV.UK is explicit that you still “need to tell organisations outside government, like… banks” (GOV.UK, valuing the estate).
Order at least four to six certified copies of the death certificate at registration (they cost a few pounds each at the register office, far less than ordering them later). Banks, the pension provider, the share registrar and the probate registry will each want to see one. Photocopies are not usually accepted.
Step 2: Each bank’s threshold — with or without a grant
Here is the part that surprises most families: there is no single legal figure that decides whether you need probate to access a bank account. Each bank and building society sets its own threshold, and it can change that figure whenever it likes. The rule of thumb is:
- Below the bank’s threshold: the bank releases the funds and closes the account on the strength of the death certificate, photo ID for the personal representative, and a completed bereavement/closure form — no grant required.
- Above the bank’s threshold: the bank will not pay out until it sees the grant of probate (or grant of letters of administration if there is no will). This is its protection against paying the wrong person.
Thresholds among the large banks in 2026 cluster around £25,000 to £50,000, with many building societies sitting lower. The figures below are typical, illustrative bands — always confirm the current figure with the specific institution’s bereavement team, because they are set by each provider, not by statute, and move over time.
| Type of provider | Typical probate-free band (2026, illustrative) | What you generally show below it |
|---|---|---|
| Large high-street banks | ~£25,000–£50,000 | Death certificate, photo ID, closure form |
| Building societies | ~£15,000–£50,000 | Death certificate, ID, passbook/closure form |
| NS&I (Premium Bonds, savings) | Has its own bereavement process and limit | Death certificate, claim form |
| Any provider — above its threshold | Grant of probate required | Grant of probate + ID |
Two practical wrinkles:
- Thresholds usually apply per banking group, not per account. If the deceased held a current account and a savings account with the same group, the bank adds the balances together and tests the total against the threshold.
- Even one account over the limit forces probate for the whole estate’s dealings with that institution. If everything else is small but one provider holds £60,000 over a £50,000 threshold, you will need the grant.
Worked example: closing a £30,000 account below the probate limit
Margaret Whitfield, a widow from Harrogate, dies in March. Her son David is the executor named in her will. Her assets are:
- A current and savings account with the same bank (call it Northshire Bank), combined balance £30,000. Northshire’s probate threshold is £50,000.
- Personal belongings worth a few thousand pounds. No property (she rented), no other accounts.
Total estate well under £325,000, so no Inheritance Tax is due (the nil-rate band is £325,000 — GOV.UK, Inheritance Tax). Because the £30,000 sits below Northshire’s £50,000 threshold, David does not need probate at all. Here is exactly what he does:
- Register the death and order 4 certified copies of the death certificate.
- Notify Northshire via the Death Notification Service. The account freezes; within 10 working days the bereavement team writes to David confirming the £30,000 balance and enclosing a closure form.
- Complete the closure form, sign the declaration as executor, and return it with one certified death certificate, a certified copy of the will showing he is executor, and his photo ID.
- Northshire releases the funds. Most banks pay out within roughly 5–15 working days of receiving the complete paperwork — either by transfer to the executor’s account or by closing cheque payable to the estate.
Result: £30,000 reaches the estate with no probate application, no £300 court fee, no IHT. David then settles Margaret’s final bills and distributes the rest per the will. Total cash cost: the price of a handful of death certificates and some postage.
Contrast that with the same facts but a £60,000 balance: David would have to apply for the grant of probate first (application fee £300 for estates over £5,000, plus £16 per extra copy of the grant — GOV.UK, probate fees), then send the grant to Northshire to unlock the money.
Step 3: Paying Inheritance Tax from a frozen account — the IHT423 Direct Payment Scheme
Now the chicken-and-egg problem that catches out larger estates. To get the grant of probate, you usually have to pay the Inheritance Tax first. But the deceased’s money is frozen in accounts you cannot access without the grant. How do you pay a tax bill with money you cannot reach?
The answer is the Inheritance Tax Direct Payment Scheme, operated through form IHT423. It lets banks, building societies, NS&I and investment providers pay some or all of the IHT bill directly to HMRC out of the frozen account, before the grant is issued (GOV.UK, pay IHT from the deceased’s account).
The mechanics, in order:
- Get your Inheritance Tax payment reference number from HMRC before you do anything else — the scheme will not work without it. Apply for it at least three weeks before you need it.
- Complete form IHT423 — one form per account/institution you are asking to pay from.
- Send each IHT423 to the bank or building society itself — NOT to HMRC. This is the most common mistake. The form goes to the financial institution holding the money. GOV.UK is explicit: send IHT423 to the bank, building society or provider, while your IHT400 and supporting pages go separately to HMRC’s Inheritance Tax team at BX9 1HT.
- The institution transfers the requested amount straight to HMRC, quoting your IHT reference. Once HMRC has the tax (and your IHT400 has been processed), it issues the receipt that lets the probate registry grant probate.
The Okafor estate. Joseph Okafor dies leaving an estate worth £700,000, made up of a house worth £450,000 and £250,000 in a single savings account at Meridian Bank. He leaves everything to his sister, so neither the spouse exemption nor the residence nil-rate band (which needs direct descendants) applies.
IHT calculation:
- Estate value: £700,000
- Less nil-rate band: −£325,000
- Taxable estate: £375,000
- IHT at 40%: £150,000
His executor, Amara, cannot touch the £250,000 — it is frozen, and Meridian’s threshold is far below £250,000, so she needs probate. But to get probate she must pay the £150,000 IHT. So she uses the Direct Payment Scheme:
- She gets an IHT payment reference number from HMRC.
- She completes one IHT423, asking Meridian to pay £150,000 to HMRC from the frozen savings account.
- She sends that IHT423 to Meridian (not HMRC), and sends the IHT400 to HMRC at BX9 1HT.
- Meridian transfers £150,000 to HMRC. The £100,000 left in the account stays frozen until the grant arrives.
- HMRC issues its receipt; the probate registry grants probate; Amara sends the grant to Meridian and the remaining £100,000 is released to the estate.
The whole £150,000 tax bill was paid from the estate’s own money — Amara never had to find it from her own pocket. (Note: the scheme covers the IHT and any interest, but not the £300 probate application fee, which the executor pays separately.)
Step 4: Joint accounts and direct debits
Joint accounts usually pass automatically
A joint account behaves very differently from a sole account. Most UK joint accounts are held as “joint tenants”, which means the right of survivorship applies: on the death of one holder, the whole account passes automatically to the surviving holder outside the will and outside probate. The survivor simply notifies the bank, sends a death certificate, and the account is re-registered in their sole name — it is not frozen, and they can keep using it throughout.
Two cautions:
- It can still count for Inheritance Tax. The deceased’s share of a joint account is part of their estate for IHT purposes (typically a half-share for a couple, unless evidence shows a different split), even though the cash passes to the survivor automatically. Survivorship decides who gets the money; it does not exempt it from IHT.
- Spousal exemption often removes the tax. If the survivor is the spouse or civil partner, transfers between them are usually exempt — but you still report the asset.
Direct debits and standing orders
When a sole account is frozen, ongoing payments are affected:
- Standing orders (instructions the account holder set up) are cancelled on death.
- Direct debits are generally stopped too — but do not assume every regular bill simply ends. Contact each company (utilities, council tax, insurance) to close, transfer or settle the account, because unpaid liabilities still fall on the estate.
- Watch the essentials. Buildings insurance on an empty property, for example, must not lapse. If a direct debit for it stops, arrange cover another way — an uninsured estate property is a real risk to the beneficiaries.
- Joint-account direct debits continue, because that account is not frozen — the survivor should review and tidy them.
- You notify the bank with the death certificate — no grant needed to freeze a sole account; the freeze is immediate.
- Use the free Death Notification Service to tell several banks at once; member firms reply within 10 working days. Tell Us Once covers government, not banks.
- Each bank sets its own probate threshold (commonly ~£25k–£50k in 2026). Below it: funds released on the death certificate and ID. Above it: you need the grant. Always confirm the current figure with the provider.
- The grant costs £300 (estates over £5,000) plus £16 per extra copy — GOV.UK.
- Pay IHT from a frozen account with form IHT423 — get your IHT reference first, and send IHT423 to the bank, not HMRC. Standard IHT rate 40% above the £325,000 nil-rate band.
- Most joint accounts pass automatically to the survivor by survivorship (not frozen, not via probate), but the deceased’s share still counts for IHT.
- Standing orders and direct debits on a frozen sole account stop — protect essential cover like buildings insurance manually.
Frequently asked questions
Do I need probate to close a UK bank account after death?
Not always. Each bank sets its own probate threshold — commonly somewhere between £25,000 and £50,000 in 2026. If the balance at that bank is below its threshold, it will usually release the funds and close the account on the strength of the death certificate, your ID and a closure form. If the balance is above the threshold, the bank will require the grant of probate (or letters of administration) first. There is no single statutory figure; confirm the current limit with the bank’s bereavement team.
How do I tell the bank someone has died?
Register the death, get certified copies of the death certificate, then contact the bank’s bereavement team or use the free Death Notification Service, which lets you notify several member banks and building societies at once. Each member contacts you within 10 working days. Note that the government’s Tell Us Once service notifies government departments only — not banks.
What happens to a joint bank account when one holder dies?
Most UK joint accounts are held as joint tenants, so the right of survivorship applies: the account passes automatically to the surviving holder outside probate, and the account is not frozen. The survivor sends a death certificate and the account is re-registered in their sole name. The deceased’s share, however, still counts towards their estate for Inheritance Tax (usually a half-share for a couple), even though the cash passes automatically.
How do I pay Inheritance Tax if all the money is frozen?
Use the Inheritance Tax Direct Payment Scheme. First get your IHT payment reference number from HMRC, then complete form IHT423 and send it to the bank, building society, NS&I or investment provider holding the money — not to HMRC. The institution pays the requested amount straight to HMRC from the frozen account before the grant is issued. Your IHT400 goes separately to HMRC’s Inheritance Tax team. (See GOV.UK.)
Do direct debits stop automatically when an account holder dies?
For a frozen sole account, standing orders are cancelled and direct debits are generally stopped. But you should still contact each company to close or settle the account, because liabilities remain payable from the estate — and protect essentials such as buildings insurance, which must not be allowed to lapse on an estate property. Direct debits on a joint account continue, because that account is not frozen.
How long does it take to get the money out of the bank?
Once the bank has the complete paperwork — closure form, death certificate, ID, and the grant of probate if it is required — most banks release funds within roughly 5 to 15 working days. The longer wait is usually getting probate itself when the balance is above the bank’s threshold, which can take several weeks to a few months depending on the registry’s current timescales.
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Official sources: GOV.UK — Inheritance Tax · GOV.UK — pay IHT from the deceased’s account · GOV.UK — IHT423 · GOV.UK — probate fees · GOV.UK — telling organisations · Death Notification Service. Figures verified June 2026; bank thresholds are set by each provider and change — always confirm with the institution.