WHAT THE BANKS DO

Theoretically, all accounts belonging to a couple married in community of property should be frozen on the death of one spouse, because the assets form part of a joint estate. In practice, however, the banks will freeze your accounts if you die, even if your spouse has signing powers, but they will usually not freeze accounts that are in the name of your surviving spouse alone.

Personal Finance asked the big five banks to outline their policies, particularly in the case of couples married in community of property. Their responses are as follows:

ABSA

Riaan Botha, the national manager, Absa Wills, Estates and Trust Services, says: “Prior to the appointment of the executor, the Administration of Estates Act allows for the funds in the communal estate to be accessed in order to provide for a suitable funeral for the deceased, or for the subsistence of his or her family.

“Once appointed, the executor is legally bound to freeze the accounts of the joint estate. However, in practice, the spouse is permitted to continue transacting on his or her personal accounts. This is the stance taken by Absa Trust in support of the spouse and to ensure continuity in the management of his or her living expenses.”

CAPITEC

The Capitec legal team says Capitec does not freeze the surviving spouse’s savings account. “Should the surviving spouse require funds from the deceased spouse’s account for the funeral expenses, they can approach the Master of the Court, who will issue a letter requesting us to release a stipulated amount for the funeral expenses of the deceased. If we receive this letter, signed and stamped by the designated official, we assist in transferring the funds to the nominated party,” Capitec says.

FIRST NATIONAL BANK (FNB)

Vijay Morarjee, the chief executive of FNB Fiduciary, says: “We are not in the practice of freezing the separate account of the surviving spouse, unless instructed to do so by the executor of the community-ofproperty estate.

“Many surviving dependants of the deceased (or of the surviving spouse in a joint estate) are not always aware of the provisions and concessions contained in the Administration of Estate Act regarding interim distributions from the deceased’s accounts for the costs of a suitable funeral, for the maintenance of his or her family and preserving or maintaining any part of their property.

“There are various alternatives that can be leveraged to provide liquidity. Some of the common approaches include the use of trusts, funeral policies and life cover.”

NEDBANK

Trish Brown, Nedbank’s senior legal adviser for retail and business banking, says: “While we are legally obliged to freeze all bank accounts that form part of a joint estate where the clients are married in community of property, we do try to assist our clients as much as we can. The surviving spouse must arrange for the appointment of an executor as soon as possible. We will take instructions from the duly appointed executor, who is empowered in law to provide for the funeral expenses and living expenses of the surviving spouse.

“To the extent allowed in law and under certain exceptional circumstances, and against the provision of relevant documentation, we may consider allowing the surviving spouse to use funds to pay for funeral and living expenses before the executor is appointed.”

STANDARD BANK

“Legally, the bank is not permitted to allow a surviving spouse to have access to a deceased’s bank account. The surviving spouse can, however, approach the bank for access to a credit facility in his or her personal name in order to pay for funeral or living expenses prior to the executor taking charge of the estate. These applications are subject to the normal credit evaluation rules,” Standard Bank spokesperson Ross Lindstrom, says.