A bank mandate may continue beyond death, yet withdrawals often lead to restitution and dispute. What heirs should know about it.
Mag. Bernhard Brandauer
Attorney · BRANDAUER Rechtsanwälte, Salzburg
Inheritance matters are handled by Mag. Bernhard Brandauer together with a coordinated team. We examine the will, compulsory portion, gifts and deadlines and tell you clearly where you stand.
Many people grant relatives a bank mandate so that they can act when needed. After a death the question quickly arises whether this mandate still applies and whether money may still be withdrawn on its basis. It is precisely here that conflicts between the heirs frequently arise.
This article explains what a bank mandate does after death, which risks withdrawals carry and which duties exist toward the co-heirs. It does not replace advice in an individual case but sets out the most important points.
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The answer indicates which risks can arise in an inheritance dispute.
Dispositions after the death fall into the estate and belong to all heirs jointly. Anyone who withdrew amounts on the basis of a mandate may be obliged to return them to the estate. In the probate proceedings such movements must be disclosed.
A complete list of the dispositions creates clarity and forestalls the reproach of unilateral action.
Anyone who has dealt with the accounts of the deceased generally owes the other heirs information and an account of dealings. This concerns movements after the death and can also cover dispositions shortly before. The devolution of the estate changes nothing about this.
Early and complete information defuses mistrust and creates the basis for an orderly division.
As long as the estate has not been devolved, no heir may dispose unilaterally of account balances. Urgent payments such as funeral costs should be documented and coordinated with the co-heirs. In case of doubt the court commissioner provides orientation.
Restraint protects against restitution and against the suspicion of having helped oneself at the expense of the other heirs.
A bank mandate does not necessarily end with death. Many mandates are arranged so that they continue beyond death, provided they have not been revoked. Technically the authorised person therefore remains able to act toward the bank for the time being.
This formal ability to act, however, says nothing about whether a disposition is permissible in relation to the heirs. After death the balance belongs to the estate and thus to all heirs jointly, not to the authorised person alone.
Anyone who withdraws money on the basis of a mandate after the death and uses it for their own purposes takes a considerable risk. Such amounts can be reclaimed into the estate by the other heirs, because they belong to all jointly.
As a rule only dispositions in the interest of the estate are permissible, for instance for urgent costs. Even these should be documented and coordinated with the co-heirs. Unilateral withdrawals are one of the most frequent causes of an inheritance dispute.
Until the devolution of the estate the estate is a separate body of assets. No heir may dispose unilaterally of the account balance. Dispositions should be made transparent in the probate proceedings.
Toward the co-heirs there is moreover a duty to account for the movements made. Anyone who keeps the purpose and receipts ready can easily rebut the reproach of unilateral action. Where this transparency is missing, the dispute often escalates quickly.
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