Can bank freeze joint account when one of the account holder dies?

[hyom]

I have joint bank accounts with my wife. I am rather worried that banks can freeze joint accounts when one of the account holders pass away. One financial adviser and even the late Dennis Ng told me this is possible but that was many years ago.

For those in the know, may I know if this is still possible today? Thank you.

This question was prompted by another thread
http://www.valuebuddies.com/thread-3538-...l#pid54848

[opmi]

Qn: How banks or CDP know if wife dont declare husband's death??

Operationally, just get wife to transfer most of the money or CDP out first. If it is JOINT OR account.
Then declare death.

[dtane]

Hi Hyom,

Bank will only freeze if the joint account requires joint signing authority. If only one signing authority is required, bank won't freeze the joint account.

Taken from OCBC Terms and Conditions.

(a) Where the Joint Account(s) is/are operated with a single signing authority, instructions from any one of the Joint Account(s) holders will be accepted by the Bank and such instructions will be binding on the other Joint Account(s) holders.

If, prior to acting on instructions received from one Joint Account(s) holder, the Bank receives contradictory instructions from another Joint Account(s) holder, the Bank may choose to act thereafter only on the mandate of all the Joint Account(s) holders of the Joint Account(s) notwithstanding the Joint Account(s) require single signing authority.

Upon notice of the death of any one of the Joint Account(s) holders, the Bank shall be entitled to pay the credit balance in the Joint Account(s) to the survivor and if more than one survivor, in their joint names provided that prior to such payment, the indebtedness of any of the Joint Account(s) holders to the Bank shall first be set-off from the said credit balance.

(b) Where the Joint Account(s) is/are operated with joint signing authority, oral instructions will not be accepted by the Bank. Any written instructions may be given by the Account(s) holders in one or more counterparts, all of which when taken together shall constitute one and the same document.

Upon notice of the death of any one of the Joint Account(s) holders, the Bank shall be entitled to freeze the Account and to retain the credit balance in the Joint Account until such time the Joint Account(s) holder's successor produces a grant of probate or letters of administration.

[hyom]

Hi Hyom,

Bank will only freeze if the joint account requires joint signing authority. If only one signing authority is required, bank won't freeze the joint account.

Taken from OCBC Terms and Conditions.

(a) Where the Joint Account(s) is/are operated with a single signing authority, instructions from any one of the Joint Account(s) holders will be accepted by the Bank and such instructions will be binding on the other Joint Account(s) holders.

If, prior to acting on instructions received from one Joint Account(s) holder, the Bank receives contradictory instructions from another Joint Account(s) holder, the Bank may choose to act thereafter only on the mandate of all the Joint Account(s) holders of the Joint Account(s) notwithstanding the Joint Account(s) require single signing authority.

Upon notice of the death of any one of the Joint Account(s) holders, the Bank shall be entitled to pay the credit balance in the Joint Account(s) to the survivor and if more than one survivor, in their joint names provided that prior to such payment, the indebtedness of any of the Joint Account(s) holders to the Bank shall first be set-off from the said credit balance.

(b) Where the Joint Account(s) is/are operated with joint signing authority, oral instructions will not be accepted by the Bank. Any written instructions may be given by the Account(s) holders in one or more counterparts, all of which when taken together shall constitute one and the same document.

Upon notice of the death of any one of the Joint Account(s) holders, the Bank shall be entitled to freeze the Account and to retain the credit balance in the Joint Account until such time the Joint Account(s) holder's successor produces a grant of probate or letters of administration.

Hi dtane,

Thank you very much for answering my question. My worries have been cleared. You are even better than the so-called financial adviser who simply told me point-blank that the bank can freeze the joint account without further explanation. Caused me to worry unnecessarily.

By the way, do you work in a bank?

---

Qn: How banks or CDP know if wife dont declare husband's death??

Operationally, just get wife to transfer most of the money or CDP out first. If it is JOINT OR account.
Then declare death.

Hi opmi,

According to the late Dennis Ng who used to work in a bank, there are bank staff who check the obituary page and will freeze accounts accordingly.

[dtane]

Hi Hyom,

No worries always willing to lend a helping hand

I do not work in the bank, I do work in the financial industry though.