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Who gets the money from the bank when you suddenly die – pensioners should pay attention to that


Retirees' bank accounts can be a concern for survivors after death. How can problems be avoided? The solutions are here.

Retirees' bank accounts can be a concern for survivors after death.

How can problems be avoided?

The solutions are here.

Hamburg/Berlin – In the event of the death of a pensioner, the bereaved have to deal with a large number of formalities.

This also includes the deceased's bank account, custody account and the like, which contains ongoing contracts and payments despite the death.

One possible solution is the so-called estate account.

In this article, you will learn what a probate account is all about and what to consider if a retiree decides to close the account.

Estate Account: What Happens to the Bank Account After the Death of a Pensioner?

When an account holder dies, the bank account is typically frozen to prevent abuse and ensure fair distribution of wealth.

However, if the account was held jointly by more than one consumer, as is often the case with spouses, the account automatically passes to the survivor.

In this case, no probate account needs to be opened.

Pensioners in Germany:

21.3 million people

Average pension:

1,553 euros (West), 1,491 euros (East)

Credit institutes in Germany:

1,411 (Source: Bundesbank)

Biggest bank:

Deutsche Bank

On the other hand, if the account was opened in the name of an individual, it automatically becomes a probate account upon death.

As soon as the bank has been informed of the death, it is clarified who will receive the three-month pension in the quarter of the death.

It is therefore advisable to grant a bank power of attorney in good time and to draw up a will in order to regulate your own wishes.

Account termination: What pensioners should consider when closing a bank account

There are a variety of reasons retirees might want to close their bank accounts.

When planning this step, keep the following points in mind to avoid unwanted problems:

  • Check if there are alternative payment options to pay your bills.

  • Find out about notice periods and possible fees.

  • Remember to account for all payments and direct debits to avoid overdue notices.

  • Prepare your proof of identity to identify yourself to the bank.

  • Submit the notice of termination in writing and ideally send it by registered or registered mail with acknowledgment of receipt.

Living wills and powers of attorney: do pensioners need them?

Finally, a note: Many pensioners in Germany ask themselves whether they need a living will and power of attorney.

Both can help in an emergency to maintain your own self-determination and to make decisions.

However, you should find out beforehand exactly what the advantages and disadvantages of both instruments are and which options are most suitable for you.

This article was created with the help of machines and carefully checked by editor Johannes Nuß before publication.

List of rubrics: © IMAGO / Panthermedia and Daniel Scharinger

Source: merkur

All life articles on 2023-02-24

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