Accessing a Deceased Person's Bank Account in BC

One of the first practical problems after a death is money: the funeral home wants a deposit, bills keep arriving, and the account that could pay them has been frozen. Families are often surprised that knowing the PIN or holding a power of attorney does not give them access.

This article explains who can deal with a deceased person's bank account in BC, what banks commonly require, why some insist on a grant of probate, and how joint accounts are treated.

What happens to the account when the bank learns of the death

For a broader list of first steps, see our legal checklist for when a parent dies. This article focuses on the bank.

Once a bank is told about a death, it will usually restrict an account held in the deceased person's sole name. Cheques and pre-authorized payments may stop, and the bank will ask who is handling the estate. A power of attorney does not help at this stage: under section 30 of the Power of Attorney Act, an enduring power of attorney terminates when the adult who made it dies. Using the deceased's card or online banking after the death is not a substitute for proper authority and can create problems for whoever does it.

Who has authority to deal with the money

If there is a will naming an executor, the estate vests in that person when they take on the role, under section 102(2) of the Wills, Estates and Succession Act (WESA). If there is no will, or the will names no executor, section 102(1) says the estate vests in the court, and someone must apply for a grant of administration before they have authority. Our article on letters of administration explains that route.

Section 142 of WESA gives a personal representative the same authority over the estate as the deceased would have had, and requires them to administer and distribute it and to account to beneficiaries and creditors. The money in the account belongs to the estate, not to whoever reaches it first.

What banks typically ask for

Each institution sets its own requirements, and they vary with the amount in the account. Commonly, a bank asks for some or all of the following:

• Proof of death, such as a death certificate or a funeral director's statement.
• A copy of the will, often a notarial copy, so the bank can see who is named as executor.
• Identification for the executor or administrator.
• Its own release, indemnity or declaration forms, signed by the executor and sometimes by the beneficiaries.
• For larger balances, a grant of probate or administration from the BC Supreme Court.

Why a bank may insist on probate

The Province's guidance notes that financial institutions holding a deceased person's assets can require a will to be probated, that each has its own policies, and that most have maximum amounts they will transfer without a grant. There is no single provincial threshold.

The reason is protection. Section 137 of WESA says a person who pays or transfers estate property in reliance on a representation grant, before having notice that it was revoked, is not liable for the resulting loss and is discharged to the extent of the payment. Without a grant, the bank carries the risk that the will it saw is not the last will, or that someone else is entitled. For more on when a grant is needed, read do you need probate in BC?.

Is there a small-estate route?

WESA contains a small estate administration procedure, but Division 2 of Part 6 (sections 109 to 120) is shown on BC Laws as not in force. In practice, the small-estate route is the bank's own policy: for smaller balances, many institutions will release funds to the executor or next of kin without a grant if they sign the bank's release or indemnity.

Read those forms carefully. An indemnity usually makes you personally responsible to the bank if someone else later proves a better claim to the money. The Province also warns that an executor or administrator may be held personally liable for unpaid estate debts if they distribute the estate before those debts are paid.

Paying for the funeral

Funeral expenses are paid from the estate, and WESA treats them as an estate expense: in an insolvent estate, section 170 places reasonable funeral and administration expenses first in priority. Some banks will pay a funeral home's invoice directly from the deceased's account before any grant is issued, up to a limit they set. Ask the branch's estates team before you pay out of pocket, and keep the receipts if you do.

Joint accounts

If the deceased held the account jointly with someone else, the bank will usually let the surviving joint holder carry on using it once it has proof of death. That gives access, but it does not always settle who is entitled to the money. In Pecore v. Pecore, 2007 SCC 17, the Supreme Court of Canada held that the presumption of resulting trust is the general rule for gratuitous transfers, so a surviving joint holder who did not pay for their interest may have to prove the deceased intended to give them the balance on death. Bank documents may be strong evidence of that intention.

So a surviving joint holder may, in some cases, hold the money for the estate. Our articles on adding a child to a bank account and challenging joint accounts after a death explore this in more detail.

Bank asking for probate or an indemnity? Find out what you actually need

Our probate and estate lawyers can review what the bank is asking for, advise whether a grant is needed, and prepare the probate or administration application if it is.

Call 604-259-2844 or send us a message to arrange a consultation at our Vancouver office.