When someone dies, their bank account becomes part of their estate. An estate includes money, houses, and other things they owned. Taking money from a dead person’s account without permission is a big problem in the UK. It can get you in trouble with the law. My name is Danny D. Houston, and I’ve been a journalist for five years. I write simple articles about money and laws. This article explains what happens if you take money from a deceased account.
Why Is Taking Money from a Deceased Account Wrong?
When a person dies, their bank account isn’t theirs anymore. It belongs to their estate. A special person, called an executor or administrator, manages the estate. An executor is named in a will. An administrator is chosen by a court if there’s no will. Only they can touch the money after getting legal papers called probate or letters of administration. Taking money without these papers is like stealing. It can hurt people who should get the money, like family or creditors. UK laws protect estates so money goes to the right people.
What Happens to a Bank Account After Someone Dies?
When a bank knows someone died, they lock the account. This usually happens in a day or two after getting a death certificate. The bank stops all payments, like bills or card use. Online banking gets blocked too. The account stays locked until the executor or administrator shows legal papers. For small accounts, under £5,000, some banks let you take money without probate. For bigger accounts, you need probate, which can take 8 weeks or more. Joint accounts are different. If the account is shared, the other person can use it without probate.
Who Can Legally Take Money?
Only the executor or administrator with probate or letters of administration can take money. Probate proves there’s a will and names the executor. Letters of administration are for when there’s no will. These papers show the bank you’re allowed to act. Without them, taking money is against the law. Even if you had permission to manage the person’s money before they died, that stops when they pass away. Using their bank card or PIN after death is not allowed.
What Happens If You Take Money Illegally?
Taking money from a deceased account without permission is a crime. You could face charges like theft, fraud, or breaking trust. Each has serious punishments. As someone who’s studied UK laws, I’ll explain these clearly.
Theft
Theft is taking money from the estate to keep it. For example, using a dead person’s bank card to buy things is theft, even if you’re their family. The Theft Act 1968 says theft can lead to:
- Up to 7 years in jail.
- Fines up to £5,000 for small cases, or more for big ones.
- Orders to pay back the money.
The court checks how much you took and why. Small amounts might mean a fine. Big amounts could mean jail.
Fraud
Fraud is lying to get money. For example, using a deceased person’s card without telling the bank they died is fraud. The Fraud Act 2006 says fraud can lead to:
- Up to 10 years in jail.
- Fines with no limit, depending on the case.
- Orders to pay back the money to the estate or family.
Fraud is bad because it tricks the bank and hurts people who should get the money.
Breaking Trust
If you’re the executor or had permission to manage money before the person died, taking money for yourself is wrong. It’s called breaking fiduciary duty. It means you didn’t do your job to help the estate. You could face:
- Criminal charges, like theft or fraud.
- Lawsuits from family to get the money back.
- Being banned from managing estates.
This happens if you use estate money for yourself instead of following the will or law.
Real Examples
The law doesn’t care if you didn’t know it was wrong. Taking money without permission is illegal. For example, someone on a forum asked if they could use their dad’s card to pay for a funeral. While banks might allow funeral payments, using the card without permission can lead to trouble. Courts look at why you took the money, but unauthorized use almost always has consequences. You can report theft to the police or Action Fraud to start an investigation.
Other Problems: Civil Lawsuits
Taking money can also cause lawsuits, not just criminal charges. Family or creditors might sue you to get the money back. I’ve researched many estate cases, and these lawsuits happen often.
Lawsuits from Family
Family members named in the will or entitled to money can sue you. They want their share of the estate. The court might order:
- You to pay back the money.
- Extra money for interest.
- Court costs, which can be a lot.
For example, if you take £10,000, family can demand it back, plus interest and fees.
Creditor Claims
If the deceased owed money, like on a credit card, creditors can sue you for taking funds. The estate must pay debts before giving money to family. Taking money stops this process, so you could owe it back.
Executor Mistakes
If you’re the executor and take money wrongly, you’re in big trouble. Family can ask the court to check the estate’s money. If you did something wrong, you might have to pay it back and face other penalties.
When Is It Okay to Take Money?
There are legal ways to use a deceased person’s account for specific things. I’ve looked into these rules, and here’s what’s allowed.
Funeral Costs
Most banks let you pay for a funeral directly to the funeral home. You need:
- A death certificate.
- A bill from the funeral home.
Banks might release up to £5,000 for this without probate. This helps families pay for burials or cremations quickly. Always ask the bank what they need.
Paying Taxes
You can use money to pay inheritance tax before probate. Banks may release funds through HMRC’s Direct Payment Scheme. You need the death certificate and tax details. This is common for big estates.
Joint Accounts
If the account is shared, the other person can use it without probate. The money goes to them automatically. But if the account is set up differently, the deceased’s share goes to the estate. Check with the bank.
Small Estates
For estates under £5,000, some banks release money without probate. Others allow up to £15,000 or £50,000. Each bank has its own rules, so call them to check.
How to Handle an Account the Right Way
To stay out of trouble, follow the legal steps. I’ve seen how doing things right protects everyone. Here’s what to do:
Tell the Bank
Let the bank know about the death right away. Give them a death certificate. They’ll lock the account to stop anyone from using it. They’ll also stop bills and payments going out.
Get Probate or Letters of Administration
If you’re the executor or administrator, apply for probate (if there’s a will) or letters of administration (if there’s no will). This takes 4–8 weeks for simple cases. You need:
- The death certificate.
- The will, if there is one.
- A list of the estate’s money and things.
Applying online is faster, sometimes taking only 4 weeks.
Pay Debts and Taxes
Use estate money to pay debts, like loans or bills, and taxes, like inheritance tax. Do this before giving money to family.
Share the Estate
Follow the will or intestacy rules to give out the money. Keep records of everything you do. Family can ask to see these records, so be clear and honest.
Use Bank Help
Many banks have teams to help with deaths. They can tell you how to pay for funerals or taxes. Call the bank’s bereavement line for support.
What to Do If Someone Takes Money
If you think someone took money from a deceased account, act fast. Here’s what I’ve learned from research:
- Call the Bank: Tell them about the problem and give the death certificate. They can check for strange transactions.
- Report to Action Fraud: Call 0300 123 2040 or report online. They handle fraud in the UK.
- Tell the Police: If it’s clearly theft, tell the police. Give them bank statements or proof.
- Talk to a Lawyer: A probate lawyer can help get the money back and take legal action.
Special Cases: Joint Accounts and Pensions
Some accounts and funds have different rules. Knowing them helps you avoid problems.
Joint Accounts
Most UK joint accounts go to the other person when someone dies. This happens without probate. But if the account is set up as tenants in common, the deceased’s share goes to the estate. Check the bank’s records. Inheritance tax might still apply, so ask a lawyer.
Pensions
Pension money might go to a person named by the deceased or to the estate. Contact the pension company to find out. State pensions stop when someone dies, but you might get a Bereavement Support Payment (up to £3,500 plus monthly help). Use the Tell Us Once service to tell the government.
Help for Families
Losing someone is tough. Money help can make it easier. Here are some options:
- Funeral Expenses Payment: If you’re on benefits, this pays for a basic funeral plus up to £1,000 for other costs.
- Bereavement Support Payment: For spouses or civil partners under pension age.
- Charity Help: Some groups give money for funerals. Ask Citizens Advice for details.
Why Following Rules Matters
UK laws make sure estates are handled fairly. Taking money without permission messes this up. It can hurt family, delay debt payments, or cause tax problems. I’ve seen families struggle with estate fights. Doing things legally keeps everyone safe and respects the person who died.
Conclusion
Taking money from a deceased person’s bank account without permission is against the law in the UK. You could face theft or fraud charges, with punishments like jail or fines. Family or creditors might also sue you. To stay safe, tell the bank, get probate, and follow the rules. For things like funeral costs, banks allow some withdrawals with the right papers. Always talk to a lawyer for big estates. By knowing these rules, you can avoid problems and respect the person who died. Have questions? Share them below or ask a legal expert.
Disclaimer: I am not a lawyer. This article is only for information. It is not legal advice. Please talk to a real lawyer or bank if you need help. This is not a promo or affiliate article. I do not make money from it.
