Experts warn: ‘Never tell your bank that a loved one has died’

Losing a loved one can be one of life’s most painful experiences, and some experts recommend that you avoid adding stress to the occasion by telling your bank prematurely that your loved one has passed away. states that it is best to do so.

Amy Devine, a social worker who goes by @yourhospicesocialworker on TikTok, created a video explaining the steps banks should take when telling a loved one that a loved one has passed away to avoid complicating the grieving process. Explaining. This video has been viewed over 695,000 times at the time of publication.

“When I say ‘don’t tell the bank,’ I don’t mean don’t tell the bank. I just don’t want you to tell the bank yet,” Amy explained in the clip. “Please give me some time to grieve.”

“You can also use this time to review paperwork, bank statements, and gather information about which accounts are automatically debited,” she continues. While you do this, automatic payments will continue to come from your account and you can deposit your premiums. ”

Amy explains that waiting to notify the bank gives her family time to collect all relevant information, such as life insurance policies and details of electricity and utility bills. After you notify the bank, your account will be frozen and you will not be able to make any withdrawals or deposits. Amy said her loved one’s death certificate should arrive within four to six weeks. She advises showing her certificate to the bank so they can work on accessing her funds.

“Hopefully there’s some protection in place on the account, like a payout on death, so you can access those funds from there,” she says. “Alternatively, you may have a revocable trust in place. Please show me that trust document.”

“Another thing you can do to help with banking issues is to add co-signers,” she continues. “If your loved one passes away and you have a co-signer on the account, that co-signer can still manage things through the account.”

While many commenters agreed with Mr. Devine’s advice, others shared that banks can notify of an account holder’s death in other ways.

@yourhospicesocialworker Once the bank is notified that the account holder has died, the bank will freeze the account. This can prevent automatic payments and premium postings. Take time to gather your thoughts and come up with a game plan. Find your bank statement to see what was paid and credited to your account. Once you have the information, notify your bank. Once it arrives, you will still need a death certificate. Do not withdraw or transfer money from that account. There are several ways to be proactive. – Add joint names to the account – Add a death payout to the account – Establish a revocable living trust – Write down important information your family needs to know (see my bio for a guidebook on this) (I wrote it on) #Social work #socialworker #MSW #BSW #hospice #family health#yourhospicesocialworker #Palliative care #endoflifeplanner #caregiver #nursing care #elderly care #Elderly problems #Advanced care planning ＃Home care #endoflifeplan #futureplan #death #dead #hospice care #chronic disease #chronic disease #hospicesocialwork #HealthDecisions #healthcaredecisions #Caregiver fatigue #Medicare #Estate Planning #Banking #Bank ♬ Original song – Hospice Social Worker

One viewer said: “Banks get notified anyway… within about 10 days they find out.”

“Actually, even if you don’t notify, Social Security will notify the bank as well,” a second person said.

“When I worked at a bank, we would read the obituaries every morning and freeze the accounts,” said another.

according to bank rate, One problem is that funeral homes routinely notify the Social Security Administration that your loved one has passed away. This is to ensure that Social Security checks are no longer issued. Once the bank is notified, the account will be frozen.

The outlet reports that there are also ways to avoid complications. The easiest way is to have a joint account signer. A loved one can also give a power of attorney to a family member to help them prepare. Another method is to consolidate accounts to facilitate the transfer of funds. Finally, if you’re collecting information about a deceased relative’s account, you should check your state’s unclaimed database. All banks are required to turn over unused accounts to the state after a period determined by local law.

The Daily Dot reached out to Devine for more information via a comment on TikTok.