On Death

[Kassee]

when someone dies, leaving a will and a power of attourney, how long does it take for finances to be made available. I am told money/assets are frozen for some time after one's death. Is this true ?

[woofgang]

In the Uk, sort of. Banks may allow withdrawal of monies if the account is small on presentation of a death certificate and other paperwork (proof that the person asking is entitled to do so and a form absolving them from responsibility IIRC) They will also pay directly things like funeral expenses if this is necessary. Larger accounts and other assets will be frozen pending probate or letters of administration which can take some time. My late DH's will was a simple one, quite straightforward but took about 2 months to sort. One of the big holdups was getting final sums owing info from credit cards companies, they kept saying not to worry as they weren't pressing for repayment but I had to explain that they were holding up the whole process. Power of attorney becomes meaningless after death I am afraid so is not relevant here.

[carrot99]

My friend's dad died last October, leaving only cash so just bank accounts and pensions to sort out. He had a will and there was no inheritance tax owing and she received her inheritance about February this year. She used a company to do the probate for her and I believe they charged about £1500.

[VHG]

Nobody can get hold of the money of a dead person until it has been decided if there is any tax such as inheritance tax (or other tax) to be paid.

Also the person sorting out the will has to make sure all the debts have been paid, and also all money owing to the deceased (like from the electricity supplier or gas supplier if the dead person is in credit with them) has been returned.

All this can take many weeks or months (depending on size of the estate).

Only when the final "pot" of money has been settled (when all debts have been paid, house etc sold) can the money be given out to those mentioned in the will.

[woofgang]

goodness carrot, that's quite a lot....

[woofgang]

actually thinking about, it, that may not be a lot to pay. The very helpful solicitor who worked for me (he had written the will) did the work on a bit by bit arrangement. He completed the forms, did the probate interview and the complicated stuff and I chased credit cards, contacted the investment people and banks and so on. he also had to sort out requirements under american law and get the appropriate documents for me. All in all it cost me about 800 but 200 of that was paid to other people for foreign documentation.

[smoneybags]

The Power of Attorney ceases upon death.

[rccatnap]

Yes, the Power of Attorney ceases upon death, but if you are named as an executor then the Power of Attorney effectively endures.
That's what happened when my mother died. All I needed was a few notarised copies of the Death Certificate, abtained from a high street solicitor. Then, after presenting my own valuation of the estate, which included her house and belongings plus a bank account. Once I received the cleared Probate documents after paying death duties, I was then able to distribute the assets according to the will. The whole thing took about five weeks. I did not, apart from the notarised death certificate copies, require the use of a solicitor. More than one copy is needed because each creditor or asset holder needs to see the death certificate at some stage, so I did not have to wait until each copy came back from the various parties. Saved a lot of time.

[Kassee]

so does the house have to actually by sold before any money in the bank can be touched ?

[factor-fiction]

>so does the house have to actually by sold before any money in the bank can be touched

I don't see any connection between the two things.

[ubasses]

No once everything is complete you will have all the cash and be able to put the house on the market, assuming you have inherited it all.

[Graham-W]

Perhaps you are getting confused over "power of attorney" and "executor". The executor(s) carry out the instructions in the Will once probate has been granted.