How was bank account frozen?

tskk

My father in law passed away recently. The only thing we have done so far is to supply the Dept of Social Protection with his death cert to cancel his pension. We have discovered his bank account is now frozen. Would the bank have frozen his account when they cancelled his pension? He only has a couple of direct debits going through and they have been returned.

P. Breathnach

When a bank becomes aware that a customer has died, they must freeze the account. How they learned of his death can only be a matter of speculation.

When an executor or administrator is appointed, that person can take control of the funds in the account.

loobylou

His pension had probably been paid directly into his bank account. There may have been a delay between the date of his death and the cancellation of his pension. If his pension was continued to be paid after his death, the DSP will have "withdrawn" such overpayments when they became aware of it. This tipped off the bank.

ct5amr2ig1nfhp

I believe the executor or administrator can only access the funds after grant of probate has granted. The bank will keep the account frozen until then.

If it's a very small sum, the bank can release the funds sooner. The bank can also pay the funeral expenses directly.

And yes it was most likely the DoSP that informed the bank. Either directly or indirectly by trying to get a refund on a pension overpayment.

P. Breathnach wrote: »

When a bank becomes aware that a customer has died, they must freeze the account. How they learned of his death can only be a matter of speculation.

When an executor or administrator is appointed, that person can take control of the funds in the account.

Fred Swanson

This post has been deleted.

P. Breathnach

Fred Swanson wrote: »

This post has been deleted.

In my very limited experience, state organs that pay pensions tend to deal directly with the personal representative of the deceased, and do not communicate with other bodies like banks. I think there is a view that there are proper channels of communication that should be respected.

Perhaps some legal practitioner might happen along and say if my experience is typical (including that they apply to the executor or administrator for refund of overpaid pensions).

Owryan

Have had to deal with the banks when both my parents passed away.

The first time, no problems, rang them and they froze all outward transactions till the probate was sorted.

Second time i thought i had contacted the banks my mother had dealings with. About 2 weeks later a letter arrived to my mothers home addressed to "Family of xxxxx xxxxxx". Turned out she had a small account with another bank, a member of staff saw my mothers obituary, knew she was a customer and informed her manager. The manager froze the account and then made contact with the family.

Any chance something similar occurred in the O.P.'s case?

loobylou

Quote from recent correspondence with DSP.
"The Department's standard procedure for recovering posthumous overpayments is to communicate directly with the financial institution, requesting the refund of the amount due. Section 340 of the Social Welfare Consolidation Act 2005 provides for the recovery of such payments from financial institutions."

ct5amr2ig1nfhp

The DoSP contact the bank directly. The bank will refund without consent from the administrator. However they will issue the administrator or solicitor a letter with the details.

P. Breathnach wrote: »

In my very limited experience, state organs that pay pensions tend to deal directly with the personal representative of the deceased, and do not communicate with other bodies like banks. I think there is a view that there are proper channels of communication that should be respected.

Perhaps some legal practitioner might happen along and say if my experience is typical (including that they apply to the executor or administrator for refund of overpaid pensions).