How to Unlock a Joint Account in Case of Death:

How to Unlock a Joint Account in Case of Death: What Happens to a Joint Bank Account When One of the Holders Dies?

When one of the holders of a joint bank account passes away, the account may be subject to restrictions until legal formalities are completed. Understanding the process, required documentation, and the division of funds among heirs is essential to unlocking the account efficiently.

Joint accounts are commonly used by couples, families, or business partners. However, when one of the account holders dies, the bank may freeze the account, affecting the surviving co-holder. The key issue is how to unlock the account and manage the deceased’s share.

The first step is to determine whether the account is a joint signature account or an individual signature account, as this affects how the account can be accessed after death. This guide provides a comprehensive overview of the legal and procedural steps necessary to unlock a joint account and distribute funds among heirs.

Types of Joint Accounts and Their Impact on Unlocking Funds

1. Joint Signature Account

• Requires all account holders to authorize transactions.
• Upon the death of one holder, the account is fully frozen until the legal heirs are identified and succession formalities are completed.

2. Joint Account with Separate Signatures

• Each holder can operate the account independently.
• Upon the death of one holder, only their share is frozen, while the surviving co-holder can continue using their portion.

Legal Basis

According to Article 1298, second paragraph, of the Civil Code, unless proven otherwise, it is presumed that the account balance is equally owned by all co-holders. However, if one holder can prove they solely funded the account, the ownership may be reassigned accordingly (Supreme Court, No. 27069/2022).

Additionally, per the General Conditions of the Bank-Customer Relationship (Article 9), the heirs of the deceased co-holder can access the funds only if they act jointly. If any heir objects, a formal agreement must be reached.

Required Documents to Unlock a Joint Account

To unlock a joint current account after the death of one holder, the following documents must be presented to the bank:

• Death certificate of the co-owner.
• Declaration of notoriety or substitute declaration of notoriety listing the heirs.
• Identity documents and tax codes of all heirs.
• Authenticated copy of a will (if applicable).
• Declaration of legal capacity to inherit and act on the account.
• Copy of the inheritance declaration, specifying the current account and other assets.
• Receipt of inheritance tax payment, if applicable.

How Are the Account Funds Divided Among Heirs?

Upon the death of one joint account holder, only their share of the account balance becomes part of their estate. The remaining portion belongs to the surviving account holder.

Presumed Equal Division

By default, banks assume equal ownership among co-holders. However, if it can be proven that only one person funded the account (e.g., salary deposits or pension payments), the ownership structure may differ.

Examples

1. Adriano and His Wife:
○ Adriano deposits an insurance settlement into a joint account with his wife. ○ Upon his death, the entire balance is considered part of his estate, as the wife did not contribute.
2. Antonio and His Partner:
○ The partner deposits their salary, while Antonio is unemployed.
○ Upon Antonio’s death, his heirs cannot claim a share, as the account is effectively owned by his partner.
3. Mario and Renata (Equal Contributions):
○ Both deposit their pensions into a joint account.
○ Upon one’s death, the survivor retains half of the funds, while the other half is divided among heirs.

What to Do If the Bank Blocks the Account?

If the bank improperly blocks a joint account despite separate signature rights, the surviving co-holder should:
1. Contact the bank immediately to clarify the situation.
2. Consult a lawyer or a consumer protection association if necessary. 3. File a complaint with the Financial Banking Arbitrator (ABF) for a faster resolution. The ABF can order the bank to unblock the account within weeks.

Conclusion

Unlocking a joint bank account after the death of a co-holder requires careful legal and procedural steps. Understanding whether the account is a joint or separate signature account significantly impacts how funds are accessed. By gathering the necessary documents and following legal guidelines, surviving co-holders and heirs can ensure a smooth resolution to account-related issues.

VGS Family Lawyers is a law firm that specializes in family law matters such as inheritance, separation and divorce, child custody, and more.
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