Banks and financial institutions need to be notified after a death and accounts need to be handled carefully. Here is how the process works in Australia.
What happens to bank accounts when someone dies?
When a bank is notified of a customer's death, sole accounts are frozen. This means no further transactions can be made from that account, and it is placed under the control of the executor or administrator of the estate. Joint accounts generally remain accessible to the surviving account holder.
Account freezing is not immediate. Accounts do not freeze automatically at the moment of death. They are frozen after the bank is notified. There is no obligation to notify the bank within a specific timeframe after the death, but acting within the first few weeks is sensible.
What is the difference between joint and sole accounts?
For joint accounts, the surviving account holder retains full access to the funds. The account does not freeze. You should contact the bank to update the account into your sole name and remove the deceased from the account. The bank will ask for a certified death certificate and your own identification.
For sole accounts, the account is frozen upon notification and access is restricted to the executor. The executor can then apply the funds toward estate expenses and, ultimately, distribute them according to the will or the rules of intestacy if there is no will.
If the deceased had accounts you are not aware of, the Australian Financial Complaints Authority (AFCA) and the Unclaimed Money register can help locate them.
How do I access funds for the funeral before probate is granted?
Probate, the legal process that confirms the executor's authority to deal with the estate, can take several weeks to months. In the meantime, funeral costs and other urgent expenses still need to be paid.
Most Australian banks have a bereavement process that allows funds from a sole account to be released specifically to cover funeral expenses before probate is granted. The amount they will release varies by bank, but it is typically enough to cover reasonable funeral costs.
Contact the bank's deceased estates team and ask about their policy for releasing funds for funeral expenses. You will need a certified death certificate, the funeral invoice, and your own identification. Do this early, before the funeral invoice falls due.
What gets frozen and when does it happen?
Sole accounts are frozen after the bank is notified. Direct debits, standing orders, and scheduled payments from those accounts will fail after the account is frozen. Make a list of any regular payments coming out of the deceased's accounts, including utilities, subscriptions, insurance, and loan repayments, and decide which to cancel and which need to be transferred or paid another way.
Credit cards in the deceased's sole name should be cancelled. Any outstanding balance becomes a debt of the estate. If you hold a supplementary card on that account, your access to that card will cease when the primary account is cancelled.
Are there simplified processes for small estates?
Most Australian banks have a simplified process for small estates that does not require probate. The threshold varies by bank, but is typically between $50,000 and $100,000. Below this threshold, the bank may release funds directly to the next of kin or executor without requiring a grant of probate.
Contact each bank individually to ask about their threshold and simplified process. Having a certified death certificate and your identification ready will speed up the conversation.
How do I handle credit cards and personal loans?
Notify credit card providers and lenders of the death as soon as practical. Cancel credit cards held solely in the deceased's name. Any outstanding balance is a liability of the estate and is paid from estate assets before distribution.
If the deceased held joint debt with you, such as a joint personal loan, the full debt typically passes to the surviving borrower. Contact the lender to confirm the terms and to update the account into your sole name.
Do not use a credit card in the deceased's sole name after their death. Doing so may constitute fraud, even if done with good intentions.
What happens to a mortgage or home loan after a death?
If the property was owned jointly and the mortgage was in joint names, the mortgage generally continues in the surviving owner's name. Contact the lender promptly to notify them of the death and arrange for the loan to be transferred into your sole name.
If the deceased was the sole owner and borrower, the mortgage becomes a liability of the estate. The executor is responsible for continuing repayments from estate funds while the estate is administered. Selling the property or refinancing may be required depending on the estate's circumstances.
If there was mortgage protection insurance, check the policy. A valid claim may pay out the mortgage balance.
What do I need to bring when notifying the bank?
When you contact the bank's deceased estates team, have the following ready: a certified copy of the death certificate, your own photo identification, the account numbers or a recent bank statement if available, and if you are the executor, a copy of the will or the grant of probate once obtained.
Most major banks have specialist deceased estates teams with experience handling these situations. Ask for a single point of contact to manage all accounts at that institution. Keep a record of every conversation, including the date, the person you spoke to, and what was agreed.
Once you have the death certificate, the Australian Death Notification Service (deathnotification.gov.au) allows you to notify multiple banks and institutions simultaneously with a single online submission, which can save significant time.
What is the timeline before and after probate?
Before probate: notify the bank, update or close joint accounts, request release of funds for funeral expenses if needed, cancel credit cards, note any pending direct debits, and gather account statements for estate accounting purposes.
After probate: the executor gains full access to sole accounts, can distribute funds to beneficiaries according to the will, and can close remaining accounts. Property transfers and significant asset distributions also happen in this phase.
Probate is covered in more detail in the estate winding-up guides.
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Pierre started 18December after his partner Mark was given a terminal diagnosis, when they mapped out everything that needed to happen at the kitchen table. He reviews the guides to keep them honest, plain, and genuinely useful. About 18December
Published 12 June 2026
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