Why won't the bank release my relative's accounts without the will first going through probate?
One of the purposes of the probate process is to prove the validity of a will and deal with any contests against it. Probate is also used to ensure that all creditors are paid if the decedent passed away owing money to creditors or taxes. Without going through the probate process, there is no way of proving that the will is a valid one and that the beneficiaries named on it are the ones that are entitled to the estate.
You will therefore find that if the decedent had any accounts solely in their name, these will have to become the property of the deceased’s estate. This means that these accounts will have to be dealt with by the executor of the will or by the court-appointed personal representative. If the accounts were in joint names, they will automatically go to the joint account holder.
Banks and financial institutions have to be very careful, otherwise they could find themselves in big trouble for not following the proper channels when it comes to releasing the accounts of a person that has passed away. Without going through the probate process, anyone could come along and show a document that looked like a will, but it could in fact be invalid for a number of reasons, including:
It could have been fraudulently written
It may have been written under influence
The testator may not have been of sound mind and body
It may not be the most up-to-date will
It may not have been properly witnessed
The probate process is responsible for ensuring that none of the above applies to any will that has been filed in court for probate. Therefore, without the probate process the bank has no way of knowing whether the will is valid. The bank would also need to know that all debts have been paid from the estate, and that they were not releasing money that was actually required to pay off the creditors. The beneficiaries of a will do not get their gifts until the credits have been paid.
If a bank or other financial institution releases accounts and money, and then it turns out that the will is not valid, that creditors have not been paid and the taxes still remain to be paid, this responsibility and blame would fall on the head of the bank.
