What to do when someone dies

Administrator

The person/people appointed by a court to take charge of an estate when the deceased has not left a will or where the named executor is unwilling or unable to act.

Beneficiary

A person who has a legacy under the will or is entitled to inherit from the estate under the rules of intestacy.
 

Certificate of confirmation

A legal document issued by the Scottish court, which gives the executor or administrator authority to deal with the estate.

Required by the bank when the safe custody is held or if already being applied for.

Codicil

An addition or amendment to a valid will.

Dormant/Inactive accounts

An account that has not been used for a certain amount of time and has been closed by the bank. The balance is transferred to a central account until the money is reclaimed by the customer.

Estate

The assets and commitments/liabilities of the deceased. Total value of everything, including property.

Executor (Exor)

The person/people named in the will who is/are responsible for dealing with the estate and making sure that it’s settled according to its terms.

Executor/Administrator Account

Type of account which can be opened by the person or people dealing with the Estate. It’s used to take in money due to the estate and eventually pay monies due to beneficiaries.

Funeral Invoice

Has the first claim on the Estate and will be paid ahead of all other debts.

Grant of Probate

A legal document issued by the court, which confirms the validity of the will and gives the Executors authority to deal with the Estate.

Required by the bank when safe custody is held or if already being applied for.

Grant of Letters of Administration (Letters of Admin)

A legal document issued by the Court, which gives the administrators authority to act when there is no will.

Required by the bank when safe custody is held or if already being applied for.

Grant of Representation

A general term for a document issued by the court authorising the executors or administrators to deal with the estate; either a grant of probate or Grant of letters of administration.

Indemnifying Letter

A letter prepared by the bank that allows them to release funds to an executor/next of kin when the total balances held are under £50, and grant of probate/letters of admin are not being applied for.

(Indemnity) Agreement to release funds without the need for a Grant of Representation

A document prepared by the bank that allows them to release funds to the executor/next of kin when grant of probate/Letters of admin are not being applied for.

It must be signed and witnessed (witness must be over 18 and not a family member).

Inheritance Tax (IHT)

Applies if the value of the estate is above £325,000. It’s only payable on the excess above this amount, and is charged at 40p in the pound. i.e. if the value of the estate is £375,000, Inheritance Tax will be charged at 40% of £50,000 = £20,000.

The bank can release funds and may lend money for this purpose.

If the customer has any further questions about inheritance tax, they will need to refer to their solicitor or the Probate Office.

Intestate/Intestacy

An estate where the deceased has not left a valid will.

Liabilities

Debts the deceased had such as overdrafts, bank loans and mortgages.

Power of Attorney (POA)

A legal document whereby a person appoints an attorney to act on his/her behalf. It could be that they have become either physically or mentally unable to look after their own affairs. This authority is cancelled at notification of death.

Probate

A formal procedure to prove that a document is the last will and testament of the deceased.

Proof of Death

We can accept the following – either an original document or a document certified as a true copy of the original, by one of our branches or a Firm of Solicitors registered by the Law Society.

Receiver/Deputy Accounts

A receiver/deputy account is opened when a person is no longer mentally capable of dealing with his or her own affairs.

A receiver/deputy is appointed by the Court of Protection to look after the financial affairs of the Donor.

Relationship Manager

Individuals who have responsibility for the day-to-day management of the relationship with their customers within their designated portfolio.

Renunciation

The formal act of resigning from a position. A Letter of Renunciation is provided if an executor does not want to act.

Representative

Executor or administrator.

Safe Custody

Items held by the Bank for safe keeping on behalf of the customer.

Safe custody – usually documents e.g. Wills, Share certificates, House deeds, Insurance policies etc.

Boxes and parcels – locked and sealed by the customer.

Securities

Items held by the bank to secure a large overdraft or borrowing e.g. House Deeds, Insurance Policies.

Trust and Estates (T&E)

A department that can help with the administration of the Estate if required or if a Bank Appointed Will is held.

Third Party Mandate (TPM)

A person or people previously authorised by the account holder to operate an account on their behalf. This authority is cancelled at notification of death.

Treasury Solicitor and Duchy of Cornwall / Lancaster

Any estate where there is no will and no next of kin which is above £500 is referred to the relevant office and if they can find no next of kin they get the proceeds of the estate.

TRD/UKOC Bonds (formerly known as TRO)

Treasury Reserve Deposits -  usually over £50k. UK Operating Centre look after Bonds (large deposits).  Have a Deal ID instead of an account number.

Will

Instructions previously made by the deceased regarding the disbursal of assets at death.