RBS delays executor's attempt to close late mother's £28,000 account; bank apologizes and offers compensation

An executor attempting to close a bank account held by a deceased relative in Kirkcaldy has faced months of delays at RBS, with the bank repeatedly denying the appointment of the executor and offering shifting guidance. The account reportedly contained about £28,000, intended to be divided among the executor and siblings. After more than five months of back-and-forth, NatWest Group, which includes RBS, apologised for the disruption and said it would compensate the customer for the experience.

The executor says she first submitted the required documents to close the estate account in online form, along with several pieces of proof of her status as executor. She says she was told on multiple occasions that she was not the executor, only to be told later that she was. Since May, she has made more than 15 phone calls to the bank as part of the effort, and, in the latest correspondence, was told again by email that she was not the executor. At one point a bank staffer reportedly advised that a grant of probate would be required to close the account, only for that guidance to be reversed days later.

The difficulties were underscored by how the documents had to be uploaded to RBS’s online portal, which the executor says would randomly reject pages or fail to accept certain documents. In addition to the online upload, she mailed the documents to ensure the bank had everything it needed to authorise the closure. The case highlights how internal miscommunication and procedural confusion can stall the handling of a family estate during a very difficult period.

The executor notes that the situation was complicated further by cross-border elements: her parents had moved to South Africa years earlier, and there was a named executor in South Africa. The bank’s internal process reportedly wavered between recognizing the executor and deferring to the other named executor. It was only after the executor reached out to RBS directly that the matter began to move forward. Bank staff later clarified that a grant of probate is not strictly required to close the account in question.

A NatWest spokesman acknowledged the problems, saying the bank apologised for the inconvenience and distress caused by normal procedures not being followed. The bank said it had resolved the matter with the customer and would apply the lessons learned going forward, including providing compensation for the experience.

Industry professionals note that probate requirements for closing an estate vary by bank and by the size of the estate. Richard Burgess, a private wealth partner at Moore Barlow, says banks typically require sight of a grant of probate when the estate is above certain thresholds, but the rules are not uniform. He notes that some banks have released funds without probate in the past, especially for specific liabilities such as funeral costs or inheritance tax, provided there is evidence of these costs. He also mentions that some banks will allow funds to be held in a joint account as a way to transfer ownership to the surviving account holder, though this approach carries the risk that both parties could access the funds.

NatWest generally asks for probate when an estate is valued above about £50,000, though there can be exceptions depending on circumstances and complexities within an estate. This underscores the inconsistent experiences executors may face across lenders and highlights the importance of clear, uniform policies for estate closures in the wake of a death.

Executors seeking to close a relative’s bank account should start by confirming who is legally recognized as the executor and ensure that all official documents—such as letters of administration or probate—are in order. If a bank insists on probate or questions the executor’s authority, it can be worth requesting a written explanation and, if necessary, seeking guidance from a private wealth or probate attorney to avoid further delays. In cross-border cases, it may help to establish from the outset which executor holds authority and to document any related power of attorney or appointment orders from other jurisdictions.

The episode serves as a reminder that estate administration is both legally complex and emotionally taxing. While some delays are inevitable in large or complicated estates, financial institutions are expected to adhere to consistent procedures to avoid adding unnecessary stress to grieving families. Executives and regulators alike have emphasized the need for banks to streamline processes for probate and executor verification to prevent protracted delays in settling estates in the future.

In its closing note, the article accompanying these notes points to broader guidance for executors, including that probate thresholds and requirements differ by institution and jurisdiction. It notes that many banks will release funds to cover funeral costs or inheritance taxes without probate if provided with evidence of these liabilities, while others will require probate for larger sums.

For readers seeking more information on estate closure procedures and probate requirements, a wealth of guidance remains available from legal professionals and financial advisers. The evolving landscape means executors should move forward with caution, ensuring that all necessary documentation is complete, properly authenticated, and that the bank’s requirements are clearly understood before submitting any closure requests. In cases of cross-border estates or where named executors exist in multiple jurisdictions, early coordination with the bank and legal counsel is essential to minimize delays and confusion.