A parent dies, and among the papers is a bank statement. The family needs the funds for school fees and funeral costs, but the branch explains that the account cannot be operated. Frozen accounts follow death as a matter of banking practice, and the route to release runs through the succession process rather than through persuasion at the counter.
Why is the account frozen after death?
Money in a sole account belongs to the estate once the customer dies, and the bank can no longer take instructions from the account holder or, without more, from relatives. Freezing the account protects the estate: payments made otherwise than under a grant could expose the institution to a claim by the beneficiaries. Joint accounts operate differently, since the surviving holder’s mandate usually continues, subject to the terms the parties signed with the bank.
How is the account released?
The usual route is a grant of representation issued by the court. Banks generally require the grant, certified, together with the death certificate and identification for the personal representatives, before releasing funds to the estate’s representatives for administration and distribution. Institutions differ in the documentation they request and in how they treat modest balances, so the bank should be approached early and its requirements recorded in writing. The succession filings themselves are made under the Law of Succession Act, which can be consulted through Kenya Law.
What should families do first?
- Notify the bank of the death and ask for its requirements in writing.
- Locate the account details, recent statements and any nomination forms held by the institution.
- Begin the succession cause rather than waiting for other family matters to settle.
- Keep funeral and estate expenses documented for the administration account.
Where an estate holds significant deposits, fixed deposits or investments, the release usually forms part of a wider administration involving several institutions. The firm advises estates and their representatives on these steps, drawing on its banking and securities practice, and its practice areas describe the full range of succession services.
For guidance on your specific situation, contact CS Advocates LLP , call, WhatsApp, or book a confidential consultation at our Westlands, Nairobi office.