Claiming Funds from "Frozen" Bank Accounts After the Passing of a Loved One
How to Claim Funds from South African Banks After a Loved One Passes Away
Losing a loved one is a difficult experience, and dealing with their financial affairs can add to the stress. In South Africa, there are specific steps to follow to claim funds from a deceased person's bank account. This guide provides a clear outline of the process, including contact details for the deceased estates departments of major banks, and explains the difference between Letters of Executorship and Letters of Authority, which are essential for this process.
Steps to Claim Funds
1. Obtain the Death Certificate - The first step is to obtain a certified copy of the death certificate from the Department of Home Affairs.
2. Notify the Bank - Contact the bank where the deceased held accounts. Each bank has a dedicated deceased estates department to handle these matters.
3. Gather Required Documents - You will need several documents, including: - Certified copy of the death certificate - Deceased's identity document - Your identity document - Marriage certificate (if applicable) - Last will and testament of the deceased (if available) - Proof of your relationship to the deceased (e.g., birth certificate, marriage certificate)
4. Appoint an Executor or Administrator - If the deceased had a will, an executor will be named. If not, the family can appoint an administrator. - You will need either Letters of Executorship or Letters of Authority, issued by the Master of the High Court.
5. Submit the Documents to the Bank - Provide the gathered documents, including Letters of Executorship or Letters of Authority, to the bank's deceased estates department.
6. Follow Up - Regularly follow up with the bank to ensure the process is moving forward. The bank will review the documents and release the funds according to the deceased's will or the laws of intestate succession.
Contact Details of Deceased Estates Departments
- Absa Bank - Phone: 0860 111 007 - Email: deceasedestates@absa.co.za
- First National Bank (FNB) - Phone: 087 575 9404 - Email: deceasedestate@fnb.co.za
- Standard Bank - Phone: 0860 123 000 - Email: estates@standardbank.co.za
- Nedbank - Phone: 0860 555 111 - Email: deceasedestates@nedbank.co.za
- Capitec Bank - Phone: 0860 10 20 43 - Email: estates@capitecbank.co.za
Letters of Executorship vs. Letters of Authority
Letters of Executorship
- Issued when the deceased estate is valued over R250,000.
- Appoints an executor to manage and wind up the deceased estate.
- Executor has the authority to deal with all assets, including selling property, paying debts, and distributing the remaining assets to beneficiaries.
Letters of Authority
- Issued when the deceased estate is valued at R250,000 or less.
- Appoints a representative, often a family member, to manage the estate.
- Representative has limited authority compared to an executor but can still handle most aspects of winding up the estate.
Conclusion
Handling the financial affairs of a deceased loved one can be a complex process, but understanding the necessary steps and having the right documents can make it more manageable. By following the outlined steps and contacting the relevant departments, you can ensure that the process is completed efficiently. For further assistance, it is advisable to consult with a legal professional or estate administrator to help navigate any complexities that may arise.