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Have you ever wondered what would happen to the money you kept in the bank if you suddenly left this world one day? Will your family know? Who will inherit your estate?
Who will be responsible for your debts? These questions may sound daunting, but they are something that everyone should be concerned about.
Because, you don't know when an accident will happen, you don't know if your money will be taken by others, you don't know if your family will have disputes over your money.
So it's good for you and your family to find out what happens to the money in the bank when someone dies? Does the bank notify the family?
1. Will the money in the bank be frozen after the death of a person?
Many people may think that after a person's death, the money in the bank is frozen and cannot be used until someone shows a death certificate and proof of inheritance. Actually, this is not entirely true.
According to the regulations, inheritance begins at the time of the death of the decedent.
That is, legally, the property of the decedent was transferred to the heir's name at the moment of his death.
Then the heir can go directly to the bank to withdraw the deposit of the deceased, and different measures will be taken according to the following circumstances.
If the decedent's deposit is a demand deposit, then the heir can withdraw the deposit as long as the decedent's ID card, death certificate, and inheritance certificate are presented.
If the decedent's deposit is a fixed deposit, then the heir must also present the deceased's passbook or certificate of deposit before withdrawing the deposit.
If the decedent's deposit is a non-local deposit, then the heir must also present the decedent's household registration book or other valid proof before withdrawing the deposit.
If the decedent's deposit is a joint deposit, then the heir will have to take a different approach depending on the type of joint deposit.
If the joint deposit is an "or" deposit, i.e. either party can withdraw the deposit separately, then the heir can withdraw the decedent's deposit in the manner described above.
If the joint deposit is an "and" deposit, i.e. the consent of the owner is required to withdraw the deposit, then the heirs have to obtain the consent of the other joint owners.
Or show the death certificate and inheritance certificate of the other co-owners before withdrawing the decedent's deposit.
If the decedent's deposit is a trust deposit, then the heir should adopt different methods according to the provisions of the trust contract.
After death, the money in the bank is not automatically frozen, but has to be withdrawn in different ways according to different deposit types and bank regulations.
So if you want to protect your savings, or make it easier for your family to inherit your savings, it's best to make arrangements before you die.
2. Will the bank notify the family after the death of a person?
Some people may worry that if their loved one dies, they won't miss the opportunity to inherit their savings.
Because they don't know in which banks their loved ones have deposits, and they don't know how much their loved ones have deposits.
So, will the bank take the initiative to notify the family? The answer is: not necessarily. It depends on the specific regulations and operations of the bank.
If the bank is aware of the decedent's death, then the bank is obliged to notify the decedent's family or heirs so that they can complete the inheritance procedures as soon as possible.
The bank may notify the family members or heirs of the deceased by telephone, email, text message, letter, etc.
The content of the bank's notice generally includes information such as the name of the deceased, the type of deposit, the amount of deposit, the term of the deposit, and the interest rate of the deposit.
If the bank is not aware of the decedent's death, then the bank is not obliged to notify the decedent's family or heirs, nor is it obliged to inquire about the decedent's death.
The bank will handle the deceased's deposits in accordance with the normal deposit management rules.
If the decedent's deposit is a demand deposit, then the bank will continue to calculate interest until the decedent's family or heirs come to withdraw the deposit.
If the decedent's deposit is a fixed deposit, the bank will automatically convert it into a demand deposit when the deposit matures.
Interest then continues to accrue until the decedent's family or heirs come to withdraw the deposit.
epilogue
Different types of deposits, different bank regulations, and different inheritance situations will affect where deposits go and how they are processed.
Therefore, you should make relevant arrangements before your death to avoid unnecessary troubles and losses to yourself and your family.
A will is a legal document that clearly specifies how your property will be distributed and how your debts will be handled.
A trust is a form of property management that allows your savings to be managed and distributed by a trustee to the beneficiaries according to your wishes after your death.
A joint deposit is a type of deposit that is jointly owned by multiple people and allows your deposit to be used and managed by other co-owners after your death.
You can also consider the security and profitability of your deposit when making a joint deposit, and choose the appropriate deposit type and tenor.
If you have any questions or comments, please leave them in the comment area.