According to Nedbank’s Deceased Accounts Division, the estate of a deceased person is charged fees and penalties, and will also earn interest if the account is in credit, until the bank has received notification of the death.
The Executor of the Estate, or a person who has Power of Attorney, must supply written instructions to freeze the account. Formal notification includes a written instruction informing the bank of the death and requesting that the account is frozen.
The death certificate must also be supplied with the formal notification.
The Executor must also liaise with third parties who operate debit orders on the account and formally inform them of the death and provide the necessary proof. Otherwise debit orders and stop orders will continue to go through.
If there isn’t enough funds to meet the debit orders, penalties will be imposed until the account is frozen. The estate is liable to pay outstanding fees.
If someone dies without leaving a valid will, the estate will devolve in terms of the rules of intestate succession, as stipulated in the provisions of the Intestate Succession Act, (Act 81 of 1987) and the descendant/s who inherit the intestate estate will be responsible for the bank charges which were acquired prior to the formal notification being supplied to the bank.