When a loved one passes away, dealing with their finances can be confusing and emotionally challenging. You might think it’s harmless to access their bank account, especially if you shared expenses or lived together.
However, in the UK, taking money from a deceased person’s account without legal authority is a criminal offence. Understanding what is legally permitted is essential to avoid severe consequences.
This guide helps you navigate the legal implications, what you can and cannot do, and how to handle estate finances the right way.
Is It Illegal to Withdraw Money from a Deceased Person’s Bank Account Without Permission?
Yes, it is illegal to withdraw money from a deceased person’s bank account without the proper authority. Once a bank is notified of a person’s death, the account is typically frozen to prevent any unauthorised access.
Even if you were close to the deceased or had access to their bank details, using their account after death could be considered theft or fraud.
This is because the money in their account becomes part of their estate and must be distributed according to the will or intestacy rules. Any attempt to use these funds without probate or letters of administration can result in criminal charges.
The right course of action is to wait for legal authority before making any transactions from the deceased’s account.
What UK Laws Govern Access to a Deceased Person’s Finances?
In the UK, financial access to a deceased person’s assets is governed by probate law and inheritance rules. If there is a valid will, the named executor must apply for a Grant of Probate. If there is no will, a close relative may apply for Letters of Administration.
These legal documents give the authority to:
- Access and manage bank accounts
- Pay outstanding debts
- Distribute the estate to rightful heirs
Until probate or administration is granted, banks will not allow general withdrawals from the deceased’s account, except for direct funeral or tax payments. Beneficiaries must wait for legal authorisation to ensure funds are distributed fairly and lawfully.
Can Joint Bank Accounts Be Accessed Freely After One Person Dies?
Joint accounts function differently from sole accounts. If you were a joint account holder with the deceased, the funds in the account typically pass directly to you, depending on the agreement with the bank and how the account was set up. This is common with beneficial joint tenants, where the surviving account holder automatically becomes the sole owner of the funds.
However, if the contributions to the account were mostly made by the deceased, the executor may need to assess whether part of the funds should be included in the estate.
You should still inform the bank and provide a death certificate, even though probate might not be necessary for that account.
What Are the Consequences of Stealing from a Deceased Person’s Estate in the UK?
Accessing money from a deceased person’s account without authorisation is treated very seriously under UK law. You could face both criminal and civil penalties depending on the severity and intent of your actions.
Criminal Consequences
You may be charged with:
- Theft: Unlawfully taking money
- Fraud: Misrepresenting your right to access funds
- Forgery: Using false documents to gain access
These offences can lead to prosecution, with sentences of up to 7 years imprisonment for serious fraud.
Civil Consequences
The estate’s representative (executor or administrator) can:
- File a civil claim to recover the money
- Request repayment of the unauthorised amount
- Report you to authorities, leading to investigations
Any misuse of funds may also result in disqualification from inheriting, depending on legal proceedings.
Could You Face Jail Time for Accessing a Deceased Account Without Probate?
Yes, unauthorised access to a deceased person’s account can result in imprisonment. Under the Fraud Act 2006 and the Theft Act 1968, using or transferring funds without legal authority can lead to custodial sentences.
If you knowingly take money that belongs to the deceased’s estate, even if you’re a family member, this can be treated as deliberate theft or fraud. Courts consider the amount taken, intent, and any attempt to conceal the act. In serious cases, sentences can be as high as seven years in prison.
Are There Legal Ways to Access a Deceased Person’s Bank Account?
Yes, there are several legal avenues for accessing the funds in a deceased person’s bank account, and it’s vital to follow them to avoid legal issues.
Legal Methods for Access
| Method | Description |
| Grant of Probate | Issued to executors named in a valid will to access and manage the estate. |
| Letters of Administration | Given to administrators when no valid will exists. |
| Joint Account Ownership | Surviving holder may automatically inherit account funds. |
| Direct Funeral/Tax Payments | Some banks allow payments directly from the account without probate. |
Always consult the relevant bank about their policies and thresholds, as some may release small balances without formal probate if you provide required documents like the death certificate and identification.
How Can an Executor Safely Handle the Estate Without Breaking the Law?
As an executor or administrator, you’re legally responsible for handling the estate properly. Acting outside your legal authority or making mistakes can lead to personal liability. To ensure you’re on the right path:
Responsibilities You Must Follow:
- Obtain the death certificate and notify all financial institutions
- Apply for Grant of Probate or Letters of Administration
- Freeze all accounts to prevent unauthorised access
- Open an estate account to manage payments and receipts
- Pay outstanding debts, taxes, and probate fees
- Distribute remaining assets according to the will or intestacy laws
If the estate is complicated (e.g. includes debts, foreign assets, or businesses), it’s best to seek professional legal or tax advice. Doing so ensures you remain protected from accidental legal breaches.
What Should You Do If You’ve Already Taken Money Without Legal Right?
If you’ve accessed a deceased person’s funds without proper authority, act quickly to correct the situation. Ignoring it can worsen the legal consequences.
You should:
- Inform the estate’s executor or administrator immediately
- Return the funds voluntarily to the estate account
- Seek legal advice to understand your rights and liabilities
Voluntarily rectifying the issue could reduce the risk of criminal prosecution. In some cases, the executor may resolve the matter without court involvement, especially if it was a genuine mistake and the funds are returned promptly.
Conclusion
Handling the finances of someone who has died requires legal care and respect for the rules. Taking money without authorisation, even with good intentions, can lead to serious legal trouble including imprisonment. Always follow legal procedures such as applying for probate or letters of administration.
If you’re ever unsure, it’s safest to pause and seek legal advice before touching a deceased person’s account. Doing things the right way protects both you and the wishes of your loved one.
Frequently Asked Questions
What is considered inheritance fraud in the UK?
Inheritance fraud typically involves misrepresenting or manipulating estate distribution, falsifying documents, or unlawfully accessing assets.
Can banks detect unauthorised withdrawals from deceased accounts?
Yes, banks often freeze accounts upon death notification and monitor for suspicious activity, flagging unauthorised withdrawals.
Who is legally allowed to access a deceased person’s account in the UK?
Only executors with a Grant of Probate or administrators with Letters of Administration can access sole bank accounts legally.
What happens if the estate has more debts than assets?
This is known as an insolvent estate. Executors must follow a strict order of debt repayment and seek legal advice to avoid personal liability.
Can funeral costs be paid before probate is granted?
Yes, many banks allow direct payment of funeral expenses from the deceased’s account without requiring probate.
What is the penalty for inheritance tax evasion during estate handling?
Penalties may include interest, fines, and legal action depending on the severity and intent of the evasion.
Can family members be prosecuted for accessing money from a deceased relative’s account?
Yes, even close relatives can face criminal charges if they take funds without legal authorisation such as probate or bank permission.
