Should my friend inform the bank that her spouse has died?

[1247sandra]

My friend's husband has passed away in uk earlier this year and is coming over to sort things out.Should she go to the bank,they have a joint account,and tell them he has died or will they freeze the account? There is not much money in the account but she is worried about paying her utility bills which ar on direct debit.Could she just open another account in her name and pay the bills through there? has anyone used a professional to sort out taxes etc.

[cainaries]

Please please don't take this advice as gospel. A Spanish friend told me that if ever OH passed on, I should go to the Bank and not tell them he'd died and say I want to close the account and take out all the money. I'm not saying it's the 'right' thing to do but, if there isn't much money in the account .......

[1247sandra]

But surely they wouldn't let her close a joint bank account without her husband signing?

[princessmonika]

i would just leave it as it is why change it !! you have access or do you need 2 signatures ?

[Goldenmaniac]

As soon as the bank knows of the death then they will freeze the balance at the time of death - they normally give you a period of grace to keep operating the account so that bills can still be met.

However there is a bigger issue here - what about the property? Is that in joint names too.
Have a look here for general issues http://www.diana-mcglone.com/#inheritancetax

[1247sandra]

Yes they have an apartment in joint names and she realises she will have to pay inheritance tax on the half from her husband.They had a Spanish will as well.Does she go to the gestor to get the inheritance tax applications etc .
Her main problem at the moment is how can she pay the bills as she doesn't have a bank account solely in her name only the joint one,it doesn't contain a lot of money so she is not bothered by that just how to pay bills by direct debit

[Goldenmaniac]

If you follow the link http://www.diana-mcglone.com/#inheritancetax I gave you it will explain the order in which things are done. There is nothing to stop her putting money in the account to cover bills, and as I said most banks only freeze up to the value (or half if a joint account) of the balance as at the time of demise and are reasonable if they see that probate is going through.

She can either come here and appoint someone to deal with Spanish probate giving them Power of attorney to do so, or use a UK solicitor who is versed in Spanish property matters, they are in most big towns in the UK.

If the deceased was NOT a Fiscal resident of Spain then a UK probate certificate is also required, if they were then a fiscal certificate of residence is required from the Spanish Hacienda.

Of course she can open a new bank account, but she will have to go to each utility company, town hall etc and get the contracts to supply changed in to her name - something that will have to be done after probate anyway.

This is a VERY complicated issue to "go it alone" and in any case Non fiscal -residents taxation issues are dealt with in Madrid, so it makes sense to seek proper advice on her exact circumstances as soon as possible. Inheritance tax returns should be declared within 6 months of the demise of the deceased.

IMHO the bank account is the least of her issues.

[1247sandra]

She has a uk probate .I can't imagine anyone sorts this lot out before the six months is up!Anyone know someone who has actually done all of this without an awful lot of money being paid out to solicitor,gestor,hacienda etc
We are seriously going to have to sell our property in the near future as I don't want all this if my OH passes away.You have to have a lot of money put on one side to pay all of this.

[candy2411]

I have great sympathy for your friend having to sort out these issues so soon after losing her husband.

Can't help but wonder what the ramifications would be if she actually did nothing but made sure there were sufficient funds into the joint account to ensure direct debits were paid.

I understand the legal issues would have to be faced one day, but if your friend has no plans to sell in the near future...............

[Balcony]

If you inform the bank of the death they are required to freeze the account, so I would be inclined to act on the advice given to Canairies
My friend's husband has passed away in uk earlier this year and is coming over to sort things out.Should she go to the bank,they have a joint account,and tell them he has died or will they freeze the account? There is not much money in the account but she is worried about paying her utility bills which ar on direct debit.Could she just open another account in her name and pay the bills through there? has anyone used a professional to sort out taxes etc.

[Goldenmaniac]

She has a uk probate .I can't imagine anyone sorts this lot out before the six months is up!Anyone know someone who has actually done all of this without an awful lot of money being paid out to solicitor,gestor,hacienda etc
We are seriously going to have to sell our property in the near future as I don't want all this if my OH passes away.You have to have a lot of money put on one side to pay all of this.


I have great sympathy for your friend having to sort out these issues so soon after losing her husband.

Can't help but wonder what the ramifications would be if she actually did nothing but made sure there were sufficient funds into the joint account to ensure direct debits were paid.

I understand the legal issues would have to be faced one day, but if your friend has no plans to sell in the near future...............

Waiting out the four tax years (five years and three months) that the Hacienda are entitled to go back used to be a common strategy to avoid paying inheritance taxes (Not the probate that still has to be done with all the costs that entails - just the actual taxes) Less so now since the advent of better computerised systems and with the Tax authorities of Europe all talking to each-other!

The last Non resident inheritance client I dealt with this for cost approximately 3,500 with taxed on a one bedroom apartment at 2,500 euros (but the rules have changed again since then so the tax will be different now).

that included fees for (but not exclusively)
Notorised acceptance of inheritance deed - collate documents required and where applicable Sworn Translators costs
together with notorised passport copy
Power of attorney to act on behalf of beneficiary
draw up returns and present taxes in Madrid
Make Plus Valia Application to local authority
go to land registry to change title deed of property
Land registry fee paid on collection of copia simple showing new ownership
changeover utilities and townhall payments, Entemanser changeover fee etc
Advise bank and arrange new account in sole name