Executor battles to close late mother’s £28,000 RBS/NatWest account after months of delays

An executor trying to close her late mother's bank account at RBS in Kirkcaldy has faced months of delays and conflicting guidance, with about £28,000 held in the account. The case, first reported by This is Money, has highlighted how banks handle probate rules and executor verification, particularly when cross-border executors are involved.

According to the account holder, the executor uploaded the required documents to NatWest's online portal and also mailed copies after the digital submissions repeatedly failed to upload all pages. The bank repeatedly questioned whether the requester was the proper executor, and messaging in May and again on the day of reporting indicated a change in status. The mother had named a second executor in South Africa, adding to the bank's confusion. It was not until a journalist from This is Money intervened that the bank confirmed the executor's status and clarified that in this case a grant of probate might not be required to close the account.

NatWest apologized for the inconvenience and distress caused by not following standard procedures. The bank said the matter had been resolved and that it would apply the lessons learned to similar cases in the future. Compensation was provided to the executor for the experience.

Legal and private wealth advisers note that whether a grant of probate is required depends on the estate's value and the bank's own policies, which can vary. One adviser said probate is commonly required when an estate is valued above a threshold, but there are exceptions. Some banks released funds without probate during the pandemic, and families can sometimes use funds to cover funeral costs or inheritance tax with evidence of liabilities. Banks may also release funds into a joint account without probate, but that option carries the risk that both account holders can access the funds.

NatWest's general practice is to ask for probate when the estate exceeds about 50,000 pounds, though exceptions exist depending on the complications of the case. The case underscores the need for banks to clearly communicate executor status and the requirements for releasing funds to avoid delays for grieving families.

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As this case illustrates, the process of closing a deceased relative's account can vary by bank and by jurisdiction, and it is not uncommon for families to encounter shifting guidance when estates span different countries or when multiple executors are named. Private wealth lawyers emphasize documenting all letters of authority and ensuring that the executor’s legal status is established in writing before submitting closure requests. They also note that banks will often require probate or a grant of representation for larger estates, with thresholds that differ between institutions and with some variation based on the presence of other assets abroad.

For families navigating these situations, the guidance is to be persistent but precise: gather all available probate or executor documentation, maintain a clear record of correspondence, and seek written confirmation from the bank about what documents are required. If there is confusion about a second named executor, it may help to obtain a formal letter from the country of residence for the other named executor stating their role to avoid internal bank conflicts. This case also highlights the potential value of engaging a private wealth adviser early to map out the likely documentation and timelines.

Publications that track these issues have suggested that banks can, in some cases, release funds without probate up to certain limits or for specific purposes, such as funeral costs, provided there is adequate evidence of liabilities. However, in practice, the exact requirements can vary widely by bank and by the specifics of the estate, so executors should prepare for a range of possibilities and seek confirmation before submitting closure requests.

This is Money notes that the experience was frustrating for the reader, and that a more coordinated internal process within the bank could reduce delays in the future. The goal for banks is to balance timely access to funds for beneficiaries with appropriate checks to prevent misuse of an estate.

In summary, while some estates may clear without probate, and others may require it only for larger sums, the exact rules depend on the bank and the specifics of the estate. Executors should seek written confirmation on whether probate is needed before submitting closure requests, and banks should provide consistent guidance to minimize distress during an already difficult time. The case underscores the importance of clear internal processes in financial institutions when handling bereavement-related matters and cross-border estates.