Closing partner's bank account after death

Please note this sub-forum does not provide professional finance advice. You should seek advice from a licensed financial advisor.

To post in this sub-forum you must have made 100 posts or have Trust status or have completed our ID Verification.

If investing please consider our affiliate link for new accounts: Sharesies.

Forums › Finance and wealth management › Closing partner's bank account after death

Gurezaemon

~HONYAKKER!~
1355 posts

Uber Geek

ID Verified

Lifetime subscriber

#317707 7-Nov-2024 19:59

A family friend's husband has just died unexpectedly, and unfortunately neither of them had a will.

She has no idea how to go about closing her husband's bank account (not a joint account) and investments, etc.

Is that something that a lawyer will take care of? She's a bit overwhelmed by it all, and really has no idea what she should be doing.

Thanks for any input.

Get your business seen overseas - Nexus Translations

1 | 2

Networkn
32364 posts

Uber Geek

ID Verified

Trusted

Lifetime subscriber

#3306718 7-Nov-2024 20:07

I'd start here:

https://www.cab.org.nz/article/KB00000594

Depending on their financial position or willingness to pay to have someone else handle things for her, their (a) family lawyer would be able to assist with the vast majority of it.

Depending on what other family is around and willing, splitting up some tasks can assist the grieving partner cope better.

As some general advice, after a death like this, there can be a lot of activity and attention and lots of well wishers and offers of help, but after not much time, others return to their lives and the person may find then is the time the grief hits the hardest. I make it a point to check on people regularly a fortnight or so after the funeral. The odd Casserole or invitation to step outside the home with company is usually gratefully accepted.

allan

2044 posts

Uber Geek

ID Verified

Lifetime subscriber

#3306722 7-Nov-2024 20:16

They will need to familiarise themselves with the laws around someone dying intestate. There are some good resources at the following links:

https://www.cab.org.nz/article/KB00000855

https://www.publictrust.co.nz/products-and-services/when-someone-has-died/when-there-is-no-will/

Earlier this year following the death of our youngest son, I acted as the administrator of his affairs, as he had assets of less than $15,000. This included closing his bank accounts. Personally I found the bank in question completely uncaring and initially unhelpful in what was a personally challenging time for his mother and me.

I should imagine that your friend's husband probably has assets of more than $15,000, in which case she would be best to engage a lawyer to take care of it all. It will save her emotional distress in what will be an upsetting time for her anyway and a lawyer will be able to advise her regarding joint property etc.

eracode

Smpl Mnmlst
8875 posts

Uber Geek

ID Verified

Trusted

Subscriber

#3306723 7-Nov-2024 20:17

IANAL but I know that dying without a will is called ‘dying intestate’ and there is well-defined law around the situation. Lots of stuff on the internet, such as this.

I believe the bank is required by law to close the account - but joint accounts do not have to be closed.

CAB is a good place to start but eventually the services of a lawyer are likely to be needed - not so much regarding bank accounts but to sort out the distribution of the estate.

Sometimes I just sit and think. Other times I just sit.

eracode

Smpl Mnmlst
8875 posts

Uber Geek

ID Verified

Trusted

Subscriber

#3306724 7-Nov-2024 20:22

There’s also a lot of info on the internet regarding the bank account. Here’s a starter and more generally here.

Sometimes I just sit and think. Other times I just sit.

Rikkitic

Awrrr
18667 posts

Uber Geek

Lifetime subscriber

#3306737 7-Nov-2024 21:03

If she goes to the bank with the death certificate, she should be able to close out the account. I went through that a few years ago and it was not too difficult.

Plesse igmore amd axxept applogies in adbance fir anu typos

Tockly

346 posts

Ultimate Geek

#3306738 7-Nov-2024 21:08

Having gone through the death of my mother recently, thankfully with a will, I would highly recommend engaging a lawyer. Think our bill was around $5k, but took so much stress away as they told me everything I had to do, handled the banks, IRD etc. Worth every cent in my opinion.

allan

2044 posts

Uber Geek

ID Verified

Lifetime subscriber

#3306741 7-Nov-2024 21:25

Rikkitic:

If she goes to the bank with the death certificate, she should be able to close out the account. I went through that a few years ago and it was not too difficult.

You would think that, sadly not my experience.

Quic Broadband

Move to New Zealand's best fibre broadband service (affiliate link). Free setup code: R587125ERQ6VE. Note that to use Quic Broadband you must be comfortable with configuring your own router.

Wheelbarrow01

1726 posts

Uber Geek

Trusted

Chorus

#3306753 7-Nov-2024 22:33

There is not enough information provided to give any concrete advice. Is there a family home? Is is jointly held or in one name only? Is there a mortgage? Is there a significant balance in the account? Are there any debts owed by the husband/his estate eg hire purchases, loans etc where the payments come from the account she is seeking to close? And the big one - are there any living children, parents or brothers/sisters of the deceased?

As others have said, estates where no will exists that are valued below $15k can be administered by "next of kin" upon making an application to the high court and following due process. This should be the person with the closest relationship to the deceased - which is usually the spouse.

There is a good overview of the general procedure on the Public Trust website: https://www.publictrust.co.nz/products-and-services/when-someone-has-died/when-there-is-no-will/

However despite providing the above link, I in no way endorse asking Public Trust to assist you in any way, shape or form. I've no experience with them personally, but I've read plenty of horror stories of them convincing families to sign on the dotted line for Public Trust to administer an estate, and most of the estate ends up going to the Public Trust through a myriad of fees, hourly charges and disbursements.

For what it's worth, there's no inherent hurry to close bank accounts or finalise any estate (or at least there shouldn't be). But it is important to gain that legal authority to administer the estate from the high court before you even begin closing accounts etc. With that paperwork in hand, the process is pretty straight forward as from that point on, you have the legal authority to make all decisions with regard to the deceased persons affairs, as if you were that person.

If you are concerned that outgoing payments are eating away at the balance of a bank account, you can present the death certificate to the bank as soon as you have that certificate in hand, and ask for the account to be frozen in the interim. As an example, check out BNZ's process here: https://www.bnz.co.nz/support/everyday-accounts/managing-accounts/managing-a-deceased-estate

I hope this information helps, but I'm not a lawyer. I have dealt with an estate before but there was a will and I was a named executor, so my experience was not the same as this situation. But if nothing else, I hope the links above are useful as a guide and starting point.

mattwnz

20176 posts

Uber Geek

#3306765 8-Nov-2024 01:38

This is a good reminder for everyone to get a will, because it can leave a big mess and hassle for family members. Even a cheap online one could work for many.

eracode

Smpl Mnmlst
8875 posts

Uber Geek

ID Verified

Trusted

Subscriber

#3306774 8-Nov-2024 07:04

mattwnz:

This is a good reminder for everyone to get a will, because it can leave a big mess and hassle for family members. Even a cheap online one could work for many.

Yes - and while you're at it, seriously consider getting your lawyer to also prepare an Enduring Power of Attorney for you. This is a doc that enables you to authorise someone you know and trust to manage your affairs for you if you become incapacitated. Hugely important IMO.

If you become incapacitated and don't have an EPA in place, managing your affairs can default to a public official who knows nothing about you.

Sometimes I just sit and think. Other times I just sit.

eracode

Smpl Mnmlst
8875 posts

Uber Geek

ID Verified

Trusted

Subscriber

#3306789 8-Nov-2024 08:35

An Enduring Power of Attorney should not be confused with an ordinary Power of Attorney - similar, but two different things in terms of what they cover.

It's unfortunate that some websites don't effectively differentiate between the two, and use loose wording - a bit poor and confusing.

Sometimes I just sit and think. Other times I just sit.

Gurezaemon

~HONYAKKER!~
1355 posts

Uber Geek

ID Verified

Lifetime subscriber

#3307817 11-Nov-2024 18:06

Thanks everyone for the input. I showed her this thread, and given that she's talking about a fair amount of assets, investments, and the like, she's already signed up a lawyer to handle things.

Get your business seen overseas - Nexus Translations

johno1234

2819 posts

Uber Geek

#3307842 11-Nov-2024 19:50

Rikkitic:
If she goes to the bank with the death certificate, she should be able to close out the account. I went through that a few years ago and it was not too difficult.

I expect you can only do that if you have been authorised to do so? Even for a spouse. The bank would not necessarily know if some other person had been given power of attorney over the persons assets.

johno1234

2819 posts

Uber Geek

#3307845 11-Nov-2024 19:53

My mother assigned an enduring power of attorney to me which allowed me to manage her financial affairs after she fell victim to dementia. Without this foresight of hers the whole situation would have been incredibly difficult.

eracode

Smpl Mnmlst
8875 posts

Uber Geek

ID Verified

Trusted

Subscriber

#3307865 11-Nov-2024 21:13

johno1234: My mother assigned an enduring power of attorney to me which allowed me to manage her financial affairs after she fell victim to dementia. Without this foresight of hers the whole situation would have been incredibly difficult.

Yes - and an EPA covers not just financial affairs but all aspects of the affected person’s life and affairs - except euthanasia which is covered by its own legislation.

Sometimes I just sit and think. Other times I just sit.

1 | 2