Bank account frozen after a death: what applies in Switzerland

When someone dies in Switzerland, their bank freezes the accounts as soon as it learns of the death. Cards stop working, e-banking is closed, standing orders are halted. Bank powers of attorney are usually of no use now either. The reason: from the day of death, the assets belong to the community of heirs, and the bank must make sure that no one disposes of them alone. Full access is generally only restored with the certificate of inheritance, and that often takes weeks to months. Most banks will still pay funeral costs and urgent bills, though, directly against the invoice. Here you will find out what applies and how to prepare.

Why the bank freezes the account

The freeze is not harassment, it is Swiss inheritance law in practice. On death, the entire estate passes to the heirs as a whole (Art. 560 Swiss Civil Code). Until the estate is divided, they form a community of heirs and can only dispose of it jointly (Art. 602 Swiss Civil Code). At first, the bank does not know who all the heirs are. If it paid money out to a single person, it could become liable to the other heirs. So it freezes everything until the succession is officially established.

In concrete terms: accounts and custody accounts are blocked, debit and credit cards cancelled, e-banking access closed. Standing orders and direct debits are stopped or deleted, depending on the bank. This affects every account held in the deceased person’s name.

The bank usually learns of the death from the family, the executor or the authorities. Report the death actively anyway: it protects against misuse, for instance if cards or login details fall into the wrong hands.

What the bank pays despite the freeze

Frozen does not mean that nothing works at all. For costs directly connected to the death, banks partially release the account. Practice varies from bank to bank, but the pattern is similar:

Important: the bank almost always pays the biller directly and requires the original invoice. So submit invoices to the bank instead of advancing the money yourself if your own budget is tight. Ask the responsible client advisor which payments they will execute.

The certificate of inheritance: the key to the account

The certificate of inheritance is the official document showing who the heirs are. Only with it does the bank release the accounts again. From then on, the community of heirs disposes of the balance jointly, or it authorizes a single person, for example to close the accounts.

Where to apply for it

The competent authority is at the deceased person’s last place of residence. Depending on the canton, that is the municipality, the inheritance office, a notary’s office or a court. You will find an overview at ch.ch.

How long it takes

Expect several weeks to a few months. If there is a will, the certificate of inheritance is issued at the earliest one month after the will has been opened, because those involved can file an objection. Without a will, the authority first has to identify all legal heirs. The three-month period for renouncing the inheritance can also play a role if not all heirs expressly accept it. During this time the account stays frozen while rent and bills keep coming. That is exactly why preparation pays off.

Joint accounts: “or” accounts and “and” accounts

Many couples run a joint account. What happens on death depends on the type of account:

• “Or” account (compte joint): either holder can dispose of the account alone. If one person dies, the survivor can in principle keep accessing the account. The deceased person’s share still belongs to the estate, though, and the heirs have a right to information. Some banks nevertheless restrict access temporarily.
• “And” account: both must sign together. If one person dies, the account is blocked. The survivor can then only act together with the entire community of heirs.

For married couples, and especially for cohabiting couples, the difference is decisive. Cohabiting partners have no statutory right of inheritance without a will, and without an account of their own or an “or” account they can quickly end up with no access at all.

Powers of attorney effectively no longer apply

Many people rely on a bank power of attorney “beyond death”. Legally, such a power of attorney is possible. In practice, though, most banks no longer accept it after a death, or only to a very limited extent, because they have to protect the interests of all heirs. In addition, any individual heir can revoke it. So do not count on a power of attorney securing access. It helps above all during your lifetime, for instance during illness or a hospital stay.

How to prepare during your lifetime

The account freeze hits families hardest when they run everything through a single account. A few steps defuse the problem:

1. An account of your own for each partner: each person needs an account in their own name with an emergency reserve. As a rule of thumb, a few months’ worth of fixed costs is enough so that rent, health insurance and daily life keep running until the certificate of inheritance arrives.
2. Check your account type: find out whether your joint account is an “or” account. Also ask your bank how it actually handles a death and which payments it executes during the freeze.
3. Create an overview of all accounts: bank, account type, purpose, cards and powers of attorney. After a death, families lose a great deal of time just finding out where accounts exist. You can keep such an overview in the finances section of the digital emergency binder beizeiten. The entries stay on your device, and your family finds everything in one place in the printed dossier. It does not replace legal or notarial advice, but it does replace the hunt for scattered paperwork.
4. Keep important documents within reach: the family certificate (Familienausweis), will, insurance policies and contracts belong in a known place. The emergency binder checklist shows everything that belongs there.

First steps for the family

If the death has already occurred, the best way to proceed is this:

1. Report the death to the civil registry office at the place of death within two days (the hospital or funeral home often takes care of this) and order several copies of the death certificate.
2. Inform the bank or banks and ask which documents they need.
3. Collect invoices for the funeral, doctors and ongoing costs and submit them to the bank for direct payment.
4. Apply for the certificate of inheritance with the competent authority.
5. Check which standing orders were stopped and which payments you need to arrange differently for the time being.

A complete overview of all the tasks in the first days and weeks is in the death checklist for Switzerland.