Your family member dies: how to manage their banking

The death of a family member is above all a tragic event that takes a lot of time to process. Unfortunately, a lot has to be done in the first few hours and days after your loss. In addition to the funeral, you need to make several arrangements with the deceased’s bank. We know that this can be overwhelming, which is why we are here to help you get a clear outline of what steps to take.

Why it is so important to speak to your bank right away

After a death, all bank accounts in the name of the deceased are temporarily blocked immediately. This will last about three months. In practice, this means that transfers and payments are no longer possible for a while. No more mortgage repayments, rent and utility payments.

This can lead to troublesome payment arrears and may even put creditors in a position to seize part of the estate, even when its distribution is still to be determined.

Why are these accounts blocked? The accounts are blocked for security reasons and to determine with certainty who the heirs are. The notary also needs to check whether the deceased had any (tax) debts and awaits several important documents (see below) to ensure the correct distribution of the inheritance.

The sooner you get started – possibly with the help of family or friends – the less chance of any unexpected and possibly unpleasant surprises.

Every account or payment is different

Not every type of bank account or payment is treated in the same way following a death. Here are a few practical examples:

• Individual accounts (in the name of the deceased only) are blocked immediately.
• Joint accounts may be blocked temporarily.
• If the deceased was married, the surviving spouse’s account may also be temporarily blocked.
• Automatic payments are stopped. The heirs must contact service providers such as utility companies and insurance agencies themselves to arrange any future payments.
• Advance for the surviving partner: in Belgium, the surviving partner or legally cohabiting partner can release up to 5,000 euros in blocked assets to cover urgent costs such as rent or energy bills during the first few months.

Important to know: the bank can proactively pay certain costs from the blocked account(s) to take some financial pressure off the deceased's next of kin. This applies to the deceased's funeral bills, medical bills or care home costs.

Read more about bills that can be paid from blocked accounts.

5 quick steps to clarity

After a death, the next of kin must take a few steps to get these financial assets released.

1. Request the death certificate

Request a death certificate from the local council where the family member died. This document is necessary to inform official bodies, including bank(s). A funeral contractor can help you with this request.

2. Notify the bank(s) yourself

Inform all banks where the deceased had any accounts as soon as possible. You can do this by phone, by email or by visiting a bank branch. The bank will ask for an official proof of death (a copy of the death certificate) before taking any further action.

3. Request a certificate or deed of inheritance

In order to unblock the bank account, the heirs must be able to prove that they are entitled to the assets. This can be done with:

• A certificate of inheritance if there are only movable assets
• A deed of inheritance if there is also real estate

You can obtain both documents from a notary. In some cases, it is sufficient to contact the Federal Public Service for Finance.

4. Provide all the necessary documents

In order to process the estate properly, the bank usually asks for the following documents:

• The death certificate
• The certificate or deed of inheritance
• Instruction documents on how the assets are to be distributed
• Copies of the identity cards of all heirs

Only when all documents have been received and processed can the bank release the assets permanently.

5. Ask the notary for as much information as possible

When after a while, you and your family members are ready to take a look at the estate in more detail, the notary is the best person to contact. Some inheritance cases can be quite complex. Make sure you obtain all the information you need to know about all the applicable conditions, rates and tax consequences.

Try to avoid these pitfalls

You are now aware of the most important matters you need to clarify with the relevant bank(s). In addition, there are also a number of potential pitfalls you should try to avoid as next of kin.

Do not withdraw any money or make any transfers before or just after the death

You are not permitted to quickly withdraw money from the deceased’s account with a cash withdrawal or transfer, for example. The tax authorities will check the account balance on the date of death and may also decide to tax previous transactions. Attempts to make such payments may also have legal consequences.

Do not perform any transactions without the agreement of the bank and the other heirs

The administration of an estate can be quite complex, particularly if the inheritance involves many individuals. Therefore do not transfer any money or make any withdrawals from the account(s) until everything has been officially released. If you must do this for urgent reasons, always ask the permission of the bank and all the heirs first.

Do not ignore debts or taxes

If the family member in question passed away in Belgium, the heirs must submit a declaration of inheritance to the tax authorities within four months of the death. Failure to do so in time may result in fines and default interest.

Conclusion: you and the bank help each other move forward

Handling banking matters following a death takes time and effort at a time when you may prefer to focus on other people and other things. Hopefully this article has shown you that you can save yourself a lot of trouble and you can obtain extra financial and legal protection by giving this the attention it deserves.

To gain an even better insight into gifts and inheritance issues, visit our blog page on these topics.

Learn more about gifts and inheritance