Banks and deceased estates: how to close accounts, stop ongoing fees, and avoid “dead customer” problems
Deceased estates and banks: close accounts and stop fees

Date

Overview

When someone dies, families often assume the bank will automatically “freeze everything and sort it out”. In practice, banks usually need a formal notification and the right documents before they can act. If that does not happen promptly, direct debits can keep running and fees can continue to accrue.

This is not just theory. In 2025, ASIC action involving ANZ included findings about fees charged after a customer’s death and delays responding to deceased estate representatives, with penalties agreed and reported publicly.

This guide explains what to do with bank accounts after a death, what documents you will usually need, and the most common traps that cause delays.

Jurisdiction

Applicable to all states and territories

Bank products and most bank bereavement processes are national. The practical steps in this article apply across Australia.

Also, many banks subscribe to the Banking Code of Practice, which includes specific commitments about how banks handle deceased estates once they have the necessary information and the appropriate grant (probate or letters of administration).

What differs by state and territory

The legal authority to deal with a deceased person’s assets is governed by state and territory succession law and Supreme Court procedures, including:

  • Grant of Probate (when there is a Will and an executor), or
  • Letters of Administration (commonly where there is no Will, or no available executor).

Terminology is broadly consistent, but forms, e-filing systems, thresholds and supporting evidence differ by jurisdiction.

Key terms, explained

Deceased estate

The deceased estate is everything the person owned (and owed) at death, that must be collected, debts paid, and then distributed.

Executor and administrator

  • An executor is appointed in the Will to administer the estate.
  • An administrator is appointed by the court (often under letters of administration) if there is no valid Will, or no executor.

Probate and letters of administration

A grant (probate or letters of administration) is a court document that banks often require before releasing or transferring funds, especially for larger balances.

The first and most important rule: a power of attorney stops at death

Families sometimes try to keep using an enduring power of attorney to access accounts after death. Generally, that does not work because powers of attorney terminate on death

Practical takeaway: after death, the bank will only deal with the executor/administrator, not the attorney.

What to do with bank accounts after someone dies

Step 1: Notify the bank’s bereavement or deceased estates team

Most banks have a dedicated process. For example, Commonwealth Bank lists a deceased estates support channel and outlines the types of documents it will request. CommBank

As soon as you notify the bank, ask these questions:

  • What accounts and products are in place (transaction, savings, credit card, loan, term deposit)?
  • What will happen to direct debits and recurring payments?
  • What is required to stop fees and interest from continuing?

Banks’ obligations and timeframes can be influenced by the Banking Code of Practice and how quickly the bank receives the necessary information.

Step 2: Gather the standard documents

Banks commonly ask for some combination of:

  • Certified copy of the death certificate (or an acceptable proof of death)
  • Certified copy of the Will (if there is one)
  • Certified copy of Grant of Probate or Letters of Administration (where required)
  • Identification for the estate representative

Examples:

  • CBA lists death certificate, Will, and probate/letters of administration as key documents. CommBank
  • St.George lists similar requirements, including certified ID for the authorised representative. St George Bank
  • Macquarie notes that probate may be required depending on value and circumstances and provides examples of document thresholds for certain accounts. Macquarie Bank

Practical tip: even if you do not have probate yet, many banks allow you to start the notification process so they can identify accounts and advise next steps.

Step 3: Understand joint accounts (common source of confusion)

Joint accounts are often treated differently from sole accounts. The Banking Code of Practice includes specific provisions about joint accounts when one account holder dies.

If there is a surviving joint account holder, ask the bank how the account will be handled and what evidence they need.

Step 4: Ask the bank for an “estate snapshot”

Request a written summary of:

  • account balances as at date of death,
  • transactions since date of death,
  • any ongoing fees/interest, and
  • what the bank requires to finalise each product.

The Banking Code sets expectations about providing information within certain timeframes once the bank has the necessary information.

Step 5: Close or transfer accounts, and stop the “money leaks”

Common money leaks include:

  • streaming and software subscriptions,
  • mobile plans and internet,
  • insurance premiums,
  • gym memberships and other direct debits.

Create a list of recurring payments and cancel them where appropriate. If the bank requires a grant before closing, make sure you know exactly what is needed and when.

How to stop fees and delays from becoming a bigger problem

Why this is topical now

ASIC’s 2025 action involving ANZ included conduct where ANZ:

  • failed to refund fees charged to thousands of deceased customers over a period, and
  • did not respond to deceased estate representatives within required timeframes.

This has increased public attention on how important it is to notify banks promptly and keep good records of interactions.

Practical controls that help

  • Keep a single “estate admin” folder with every call reference number, email, and uploaded document receipt.
  • Use certified copies where required and label them clearly.
  • If multiple executors exist, confirm whether the bank requires instructions from all of them (this can cause delays). The Banking Code allows banks to require valid instruction from each deceased estate representative where there are multiple.
  • Escalate internally if timeframes are not being met, and keep everything in writing.

A short executor checklist for dealing with banks

  1. Notify bank bereavement teams (all banks the person used).
  2. Provide death certificate (certified where required).
  3. Provide Will (certified copy).
  4. Confirm whether a grant is required (probate or letters of administration).
  5. Identify and stop recurring payments and direct debits.
  6. Obtain balances and product list as at date of death.
  7. Close or transfer accounts once authority is accepted.
  8. Keep a complete audit trail for estate accounts and distributions.

Disclaimer

This article provides general information only and does not consider your circumstances. Probate and deceased estate processes are governed by state and territory law, and each bank may have different documentation requirements and thresholds. If you are unsure who has authority, or there is conflict or complexity (blended families, small business, unclear Will), consider getting legal advice.

LifeDocs

A large part of deceased estate stress comes from two preventable issues: unclear authority and missing documents.

LifeDocs can help you put the foundations in place by preparing:

  • a clear, up-to-date Will, and
  • the right power of attorney for your state or territory, so your trusted person can manage banking and bills if you lose capacity (noting a power of attorney ends at death).

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