A new protocol designed to ease the administrative burden on family members who suffer a bereavement has been agreed by the British Bankers' Association (BBA), the Law Society and the Society of Trust and Estate Practitioners (STEP).
The protocol covers the exchange of information between banks and solicitors and estate practitioners following the death of a bank customer.
It brings clarity to probate-related dealings between solicitors and banks by allowing solicitors to efficiently negotiate the different administrative procedures used by banks for releasing assets held by deceased customers. It has been signed on behalf of Barclays, HSBC, Lloyds TSB, Halifax, Royal Bank of Scotland and NatWest and covers the handling of current, savings, credit card and unsecured loan accounts.
This latest initiative builds on the foundation of the protocols already entered into by some individual banks. The purpose of the initiative is to bring greater clarity and consistency to these arrangements. This should help to prevent unnecessary delays and uncertainties when administering a deceased customer's bank accounts, helping to shield relatives of the deceased from further costs and stress at a very difficult and sensitive time.
Law Society president Lucy Scott Moncrieff said:
'This protocol unlocks the labyrinth of administration, costs and stress for grieving relatives by helping their solicitor to negotiate the different administrative procedures involved in winding-up an estate. Managing relationships with banks and building societies has long been a problematic aspect of probate practice. This new arrangement is a considerable achievement and we hope to see more banks participate in the protocol in the future.'
Anthony Browne, chief executive of the BBA commented:
'The last thing people want when grieving is bureaucratic hassle between their banks and lawyers. These new guidelines should help make the process work more sympathetically and avoid delays.'
David Harvey, chief executive of STEP said:
'STEP practitioners have long spoken of difficulties and delays during the estate administration process in relation to assets held by financial institutions. We are pleased to now have agreements with the majority of UK banks which will provide grieving families with some certainty at a very difficult time. We thank the BBA and the Law Society for their cooperation on this protocol and would encourage banks and similar financial institutions currently outside the agreement to consider adopting it.'
Ends
Notes to editors:
View the estate administration banking protocol
The protocol does not necessarily apply to investment, pensions or insurance matters, or to accounts held by associated companies or businesses.
The Law Society is the independent professional body, established for solicitors in 1825, that works globally to support and represent its members, promoting the highest professional standards and the rule of law.
Contact: Catherine Reed, The Law Society
+44 (0)20 7320 5902