What happens to a joint bank account when someone dies?

When someone dies, the bank freezes the accounts in their name. That happens as soon as the bank is told about the death, usually when a family member hands in the death certificate. The accounts stay frozen until the Master of the High Court appoints an executor and issues letters of executorship, or letters of authority under section 18(3) for a small estate.

A joint account is usually frozen too. The reason is simple. The money in a joint account does not automatically belong to whoever is still alive. The deceased's share of it falls into the deceased estate and has to be dealt with by the executor along with everything else. Because the bank cannot tell on its own which rand belonged to whom, the safe course is to lock the account.

Banks do not all handle this the same way. Some freeze the joint account completely. Some allow the survivor limited access, for example to continue drawing a salary that is paid into it or to pay ordinary household costs, at the bank's discretion. Some will let the survivor open a new account in their own name and move future income there. There is no rule that forces a bank to release money before the executor is appointed, so ask your branch what its policy is rather than assuming.

Why the freeze happens at all

The freeze is not the bank being difficult. Under the Administration of Estates Act 66 of 1965 nobody may deal with a deceased person's property until the Master has appointed someone to do it. If a bank paid out the deceased's money to a family member and it later turned out that money was needed to pay a creditor, or belonged to a different heir, the bank would be answerable for it. Freezing protects the estate, the heirs and the creditors, and it protects the bank.

The same logic applies to the joint account. A joint account is an account with two or more people entitled to operate it. It is not proof of who owns the money. A mother may have added her son to her account so he could draw cash for her while she was ill. That does not make the balance his. Until the executor works out who owned what, the balance is treated as part of the estate.

What happens if you were married in community of property

This is the situation that catches most families. If you were married in community of property, you and your spouse owned one joint estate. Everything either of you owned, including the balance in an account in only one name, formed part of that single estate. The Matrimonial Property Act 88 of 1984 governs how that works.

When one spouse dies, the whole joint estate is frozen, not half of it. That includes accounts in the survivor's own name. The executor has to work out what the joint estate is worth, pay the debts of the joint estate, and only then release the surviving spouse's half. The survivor's half is not an inheritance. It is already theirs. But they cannot get at it until the estate is wound up.

If you were married out of community of property with an antenuptial contract, your own accounts are not part of the deceased estate and are not frozen. Only the deceased's accounts, and any joint account you shared, are affected.

How it works step by step

1. The death is reported to the bank. Any family member can do this. The bank asks for a certified copy of the death certificate.
2. The bank freezes the accounts. Debit orders stop. Cards stop working. Salary or pension payments into the account may be reversed to the payer.
3. The estate is reported to the Master within 14 days of death. Read how to report a deceased estate to the Master.
4. The Master issues letters of executorship, or letters of authority under section 18(3) if the estate is small.
5. The executor opens an estate late account at a bank and moves the balances into it.
6. The executor pays the debts and distributes what is left according to the will, or according to the Intestate Succession Act 81 of 1987 if there is no will.
7. The survivor's own share is paid out. For a joint account, that is the portion the executor accepts as belonging to the survivor. For a marriage in community of property, it is half the joint estate after debts.

A worked example

The names and figures below are illustrative only.

Nomsa and her husband Sipho were married in community of property. Their salaries were both paid into a joint cheque account. Sipho dies on a Sunday. On the Wednesday Nomsa hands the death certificate in at the branch.

The bank freezes the joint account. Nomsa's next salary bounces back to her employer. The debit orders for the medical aid and the school fees fail. She cannot pay for groceries with the card she has always used.

Nomsa opens a new account in her own name, gives her employer the new details, and asks her medical aid and the school to re-run the debit orders against the new account from the following month. She asks the branch whether anything can be released for the funeral. The bank agrees to pay the funeral parlour directly against the invoice, which many banks will do at their discretion.

She then reports the estate to the Master and is appointed under section 18(3) letters of authority because the estate is small. Six weeks after Sipho's death she has the letters, opens an estate account, moves the balance across, pays the two accounts Sipho owed, and takes what is left. Her own half of the joint estate is released at the same time.

Had she not opened a new account quickly, she would have gone two or three months without an income she could reach. That is the practical harm the freeze causes, and it is avoidable.

What to do this week

1. Open an account in your own name at any bank if you do not already have one. Do this first. Everything else waits on it.
2. Redirect your salary, pension, grant or rental income to that new account.
3. List every debit order that runs off the frozen account and move each one. Medical aid, insurance, school fees, municipal accounts, cellphone contracts.
4. Tell the bank about the death and hand in a certified copy of the death certificate. Ask in writing what the bank's policy is on the joint account.
5. Ask about the funeral. Many banks release a limited amount, or pay the funeral parlour directly, against an invoice.
6. Do not withdraw the balance before the executor is appointed. If you do, you may have to account for it later.
7. Report the estate to the Master and get the appointment moving, because that is the only thing that unlocks the money.

Documents to gather

• the death certificate, original and several certified copies
• the deceased's identity document, certified copy
• your own identity document
• your marriage certificate, and the antenuptial contract if there is one
• the most recent statement for every account, joint and single
• a list of every debit order running off the accounts
• the funeral invoice, if you want the bank to consider releasing money for it
• proof of who deposited what into the joint account, if the split is likely to be disputed
• the letters of executorship or section 18(3) letters of authority, once issued

Realistic timeline

The freeze is immediate. Getting it lifted takes as long as the estate takes to reach the appointment stage. Letters of authority for a small estate under section 18(3) commonly take a few weeks. Letters of executorship for a larger estate take longer, and can run into several months if the Master raises queries. Read how long it takes to wind up a deceased estate for the full picture.

The final release of the survivor's share in a community of property marriage comes at the end of the process, not the beginning, because the executor must first know what the joint estate's debts are.

Common mistakes and what they cost

• Waiting to open your own account. Every week you delay is a week your income has nowhere to land. This is the single most expensive mistake and the easiest to avoid.
• Emptying the joint account before telling the bank. It looks like you were hiding assets, the executor can demand the money back, and other heirs may accuse you of taking more than your share.
• Assuming the survivor automatically gets the whole balance. A joint account is not a survivorship account in South African law. The deceased's share goes into the estate.
• Leaving debit orders running. Failed debit orders on a medical aid or insurance policy can cause the cover to lapse, which is far worse than a bounced payment.
• Not keeping proof of what you paid. If you pay the funeral, the rates or the bond out of your own pocket, keep every invoice and proof of payment. You can claim it back from the estate, but only with evidence.
• Signing the deceased's name. Using the deceased's card or online banking after death is fraud, however small the amount and however sure you are that the money is morally yours.

If you cannot afford an attorney

You do not need an attorney to deal with a frozen bank account. The bank's bereavement or estates desk deals with families directly and will explain what it needs. The Master's office also deals with the public directly, the reporting forms are free, and the counter staff will check your bundle. Small estates are administered under section 18(3) letters of authority by a family member, without an executor's fee.

Legal Aid South Africa on 0800 110 110 assists people who pass its means test. University law clinics in most large centres help families complete estate forms at no charge. If you want a rough idea of the costs of a full administration, see what a wills and estates attorney costs, the executor fees and estate duty calculator and the deceased estate reporting checklist.

Frequently asked questions

The questions families ask the branch are almost always the same three. Can I take my own money out. Can the bank pay the funeral. When does this end. The honest answers are that your own money in a community of property marriage is not reachable until the estate is wound up, that many banks will pay a funeral parlour directly against an invoice, and that the end comes when the Master issues the letters. The answers below cover the rest.