Losing a family member is a very sad situation and at that moment it is difficult to think about anything other than remembering the figure of that person who has left. However, prior to death, when that moment approaches, many can make the decision to withdraw the money from that person's accounts. But, can money be withdrawn before the death of a relative?
As you know, when a relative dies the accounts are blocked and until you finish all the procedures (and some time passes) you cannot have that money. But what if you remove it earlier? It can? Does it have consequences? We explain everything to you.
What happens to money when a person dies
Unfortunately, human beings still do not live forever. And when the final day, many can leave bank accounts with positive balances. These can be for the heirs, but getting that money is not as easy as going to the bank and taking it out after the burial.
If that person who has died was the only owner, the account will be blocked and, except for the monthly charges that are direct debited, the rest of the money cannot be accessed. In fact, only if someone claims the money and also brings the necessary documents to unlock it, such as a will or last will, the order they have is to block that account for 20 years.
If the account has two owners (one owner and another co-owner), you can withdraw part of the money, but not all of it. The bank will only allow 50% of the total capital to be withdrawn. that is in that account, while the other percentage is blocked pending that documentation.
The difference between owner and authorized
Many times, when a person cannot go to the bank, or carry out procedures, they appoint another person whom they authorize to carry out certain activities on their behalf, one of them being to represent them in a bank to withdraw money, deal with problems, etc.
However, that authorized, which is a person who has power to transact actions on behalf of another, actually is not considered a holder, but someone who does not own the account.
On the other hand, the holder, or holders because there may be several, are people who are the owners of that money, and who, therefore, can dispose of it.
Can you withdraw money before the death of a relative?
The quick answer would be Yes. Before the death of a family member, a person or persons can withdraw the money from that account. In fact, there are several reasons why it can be done. But if we delve a little deeper into this whole topic, there are some aspects to consider.
Why the money is withdrawn before the death of a family member
Having a head when you are saying goodbye to a family member from going to the bank to withdraw money is not something “normal”. But it can happen and in fact there are usually situations through which it can happen.
One of the first is due to cover medical expenses, burial, etc. In other words, if they are expenses related to burial or tax obligations, then you can use that money.
Another reason why money is withdrawn before a death is because Avoid inheritance tax. However, the truth is that it will not be avoided, in fact, you may even face a fine for doing that.
And it is that, when the account is blocked, the previous movements are looked at, both by the bank and by the Treasury, and it could be the case that they put a fairly high fine on you for having done so.
Requirements to withdraw money
If you still want to withdraw money before the death of a relative, you must meet a number of requirements What are they:
be authorized
That is, you have to be able to withdraw money from that account. In this case, there are some banks that, only with authorized ones, can let you withdraw money; others require that they be co-owners of the account.
you just have to present your ID and a document where the owner of that account has authorized another person to operate on your behalf.
If you are already a co-holder, then you can ignore this because it will be the same as if you had your own bank account and you will be able to withdraw or deposit without problem.
Communicate it to the owner and heirs
In addition to withdrawing the money, it is necessary that both the holder and the heirs of that withdrawal of money are informed. Even when that person is an heir, if the rest were not aware, faults are incurred that can be very serious.
Apart from these two requirements, a limit of 3000 euros must be taken into account. It is the maximum that can be withdrawn without informing the Tax Agency of it. If you withdraw more money, the Treasury may require the reason why you have withdrawn it.
Unblock the bank account of a deceased
In case you have not withdrawn money before the death of a relative, the fact that the bank blocks it does not mean that you cannot access that money. Yes you can. But, for this, the first condition you have to meet is to be an heir of that deceased. That is, someone else cannot have it unless they are named in the will.
This heir or heirs must present a series of documents What are they:
- The death certificate from the Civil Registry, to verify that the owner has indeed died.
- The Certificate of Last Wills of the Registry of Last Wills.
- The copy of the will. If there is not, a copy of the declaration of heirs.
When everything is presented, the bank will ensure the authenticity of these documents and will verify that the person who has presented the documents (or persons) are the ones who have the power over the money. From that moment the account is unlocked and that is when we can withdraw the money, transfer it to another account and/or close the deceased's account.
Is it now clearer to you if you can withdraw money before the death of a relative?