Your relative has just passed away and you held a power of attorney over their bank account. Your first question, often urgent: can you still use it to pay a bill, withdraw money, or cover funeral expenses? The answer is no, and it takes effect immediately.
A bank power of attorney does not continue indefinitely, contrary to what many people believe. It ends automatically upon the account holder’s death, without any particular step needed to terminate it. Here is what you need to know before taking any action on the account.
Why bank power of attorney ends when the account holder dies
A bank power of attorney is based on a mandate: the account holder, called the donor, authorises another person, the attorney, to carry out transactions on their behalf. This mandate exists only because the donor is alive and capable of granting it. As soon as the donor dies, the legal foundation of the mandate disappears, and with it the power of attorney.
This is a principle of UK law that applies to all mandates, not just banking ones. Death terminates the mandate immediately, automatically, without any need for a solicitor, court, or bank to validate anything. As soon as the bank becomes aware of the death, it freezes the account, which then becomes unavailable for any transaction carried out by the attorney. This freeze actually protects the beneficiaries: the account and its balance become part of the estate and must be distributed according to inheritance law, not according to the wishes of someone who merely held a power of attorney.
What the attorney can no longer do (and the risk of breach of trust)
From the moment of death, any withdrawal, transfer, or payment made by debit card or cheque using the power of attorney becomes unlawful, even if the attorney was unaware of the death at the time of the transaction. In practice, as long as the bank has not been informed, the card may sometimes still function technically, but this does not make the use lawful.
Using a power of attorney after the account holder’s death, with knowledge of that fact, exposes the person to potential claims for breach of trust and breach of duty towards the beneficiaries of the estate. The consequences are serious: a person found to have misused an estate may be removed from inheriting the sums involved, in addition to possible civil or criminal proceedings.
A common scenario arises: “My father has just died, can I withdraw money with his card to pay for the funeral?” The answer is no, even if the intention is legitimate. There is a specific procedure for this case, detailed below.
The practical steps to take immediately
Inform the bank and return payment methods
The first thing to do is inform the bank of the death, usually by presenting a death certificate. This can be done by a family member, the beneficiaries, or the funeral director. Once the bank receives this document, it freezes the account and terminates all powers of attorney attached to it.
The attorney must then return all payment methods linked to the account: debit card, cheque book, and any other access they held. These items no longer have any use and their retention is no longer legally justified once the bank is aware of the death.
The special case of funeral expenses
UK law makes a special provision so that relatives are not entirely blocked when facing urgent expenses. Funds from the deceased’s account can be drawn before the estate is settled to cover funeral expenses. Any person who has paid a funeral director’s bill can ask the bank for reimbursement from the deceased’s funds, on presentation of the invoice, even without being a beneficiary or holding a valid power of attorney.
Beyond this specific case, no other transaction can be carried out without the agreement of the beneficiaries or intervention by a solicitor, particularly when the estate involves multiple beneficiaries or assets to be distributed.
Power of attorney versus joint account: do not confuse them
Many families confuse a bank power of attorney with a joint account, when these two situations produce very different effects at the time of death. Here are the essential differences to remember.
| Situation | Effect on death |
|---|---|
| Power of attorney | Ends immediately; the attorney has no further rights over the account |
| Joint account | Generally continues to function; the surviving account holder retains access |
In a joint account, each account holder has the same rights over the funds, independently of the others. The death of one account holder does not therefore cause automatic closure of the account: the surviving account holder can continue to use it, unless the estate beneficiaries object and request the account to be frozen. This distinction explains why some older people prefer a joint account with a child rather than a simple power of attorney, to avoid any abrupt interruption of account management.
Continuing to use the deceased’s card “just to tide things over” while waiting for official procedures is the most common error. Even over a short period, this is enough to constitute a breach of trust in the eyes of the law.
Broad powers of attorney, elderly account holders, revocation: some particular situations
A Lasting Power of Attorney (LPA) registered with the Office of the Public Guardian gives the attorney wide powers over the account, including withdrawals, transfers, and management of investments. Its broader scope does not change when it ends on death: whether broad or limited to a few transactions, any power of attorney ends under the same conditions.
For an elderly person, putting a power of attorney in place in advance helps to anticipate a loss of capacity and makes day-to-day account management easier. This does not remove the need, when the time comes, to inform the bank quickly in the event of death, to prevent any inappropriate use, even unintentional, of payment methods still in circulation.
The donor can also decide, during their lifetime, to revoke the power of attorney at any time, without justification, simply by notifying their bank. This possibility reminds us that a power of attorney remains a tool based on trust, revisable at any time, and not a right acquired by the attorney. After death, this question no longer arises: the mandate has already ended of its own accord, and only the estate, managed with the beneficiaries and a solicitor if necessary, allows the fate of the bank account to be settled.
