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Understanding Dormant Accounts &
Deceased Accounts
What is a dormant account?
Most banks classify savings accounts, current accounts and other types of
deposit accounts as dormant where those accounts have no activity other
than transactions initiated by the bank (such as interest and charges) after a
specified period of time. This period varies from bank to bank, but is
generally 6 months or more. Sometimes people open bank accounts, deposit
money for a while, then unconsciously leave them stagnant, or, let the
account balance drop to zero or a nominal value instead of closing the
account.
Why is a dormant account undesirable?
Unnecessary fee
•
Dormant accounts are a poor use of money. Most banks levy a small
charge on dormant accounts. If you do not formally close the
account, fees may continue to be charged which you will be
responsible for paying to your bank.
Suspension of certain services
•
Some banks will cease to provide certain services to holders of
dormant accounts, such as ATM service.
Fraud risk
•
If the contact information of the dormant accounts in the bank’s
record is outdated
and you have not notified your bank timely, there
is no way for the bank to contact you and so your statements/notices
may continue to be sent to your outdated address or contact number,
which may be read by others
.
You may also miss the bank’s
important notices and messages.
As there is less incentive for you
to keep track of activities of dormant accounts, you might become
less vigilant in monitoring transactions and reconciling statements.
As a result, there is a greater risk that unauthorised transactions may
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go unnoticed for some time. Always notify your bank promptly
when there are changes to your personal information. Some banks
will impose restrictions on dormant accounts to protect your
interests.
How to avoid having a dormant account?
Close unnecessary accounts
•
Review what bank accounts you have. Formally close any accounts
that you don't need. Make sure that all standing instructions and
direct debit authorisations are identified and discontinued before
closing your account(s). You should also download and store any
electronic statements of account for record purposes before closure.
Take action upon receiving bank’s notice
•
Banks are required to give you 14 days’ prior notice when charges
accrue on a dormant account for the first time and advise you of what
can be done to avoid the charges. So, remember to read the mail or
notices from the bank and act accordingly when notice is served. Please
ensure your personal information is up-to-date in the bank’s record so
that you won’t miss any important notice.
What should you do if you may have forgotten or lost touch with your
accounts?
Visit a branch of the bank with your identification documents (e.g., Hong
Kong Identification Card) or call the bank’s customer service hotline.
Banks would endeavour to assist you to check if you hold any account(s)
with them after authenticating your identity.
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What is a deceased account?
A deceased account is one whose holder has passed away.
Why is it important to notify banks of the death of the account holder?
It is important to keep banks informed so that banks can freeze the accounts
of the deceased to protect the interest of the potential owners or beneficiaries
of the deceased’s estate. The deceased accounts will be frozen awaiting
further handling of the Personal Representative (please see the definition of
Personal Representative in the paragraph below). Please bring the original
or certified copy of the Death Certificate of the deceased to the bank to
update the account status so to prohibit unauthorized persons from
intermeddling with the estate of the deceased.
Who can deal with the bank accounts of those deceased?
The person responsible for dealing with the deceased’s estate is generally
known as a 'Personal Representative', who will either be the executor named
in the will of the deceased or the administrator who can be the next-of-kin,
or the registrar of the Court or creditors of the deceased according to the
order of priority governed by the law of intestacy where there is no will. In
general, a Personal Representative has the authority to deal with the
deceased's sole estate, such as to manage and distribute the relevant assets
to the beneficiaries.
What documents does the Personal Representative have to obtain
before handling the deceased’s assets?
A Grant of Representation is required to be obtained from the Probate
Registry of the High Court of the Hong Kong Special Administrative Region
for the handling of the estate of the deceased with a value exceeding
HK$50,000. A Grant of Representation acts as evidence of a person's right
to deal with the estate of the deceased. Should the Personal Representative
discovers any additional assets or liabilities subsequent to the obtaining of a
Grant of Representation from the Probate Registry, the Personal
Representative may be required to amend the Schedule of Assets and
Liabilities annexed to the Grant of Representation where the assets forming
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the estate of the deceased to be dealt with are not covered in that schedule.
For the application for a Grant of Representation, please contact the Probate
Registry.
If the estate has a value not exceeding HK$50,000, consists wholly of
money, the Personal Representative of the deceased can apply for a
Confirmation Notice from the Home Affairs Department instead of a Grant
of Representation.
For the application details for the Confirmation Notice,
please contact the
Home Affairs Department (Estate Beneficiaries Support
Unit)
.
What documents are required to be presented to the bank for handling
a deceased account?
The documents required may vary from bank to bank. In general, the
following documents will be required to be brought to a bank branch by
Personal Representative:
•
Original Grant of Representation issued by the High Court / Original
Confirmation Notice issued by the Home Affairs Department
•
Original identification documents of the Personal Representative
•
Original identification documents of the deceased
•
Original or certified copy of Death Certificate of the deceased
What should you do if you are looking for the account(s) of a deceased
person? Can the Hong Kong Association of Banks (HKAB) help?
HKAB has no information of individual bank accounts and does not act as
intermediaries for member banks relating to matters pertaining to specific bank
accounts.
Please contact the relevant banks directly to ascertain if a deceased person holds
any account(s) with the banks. In general, the following documents will need
to be provided:
•
Original or certified copy of Death Certificate of the deceased
•
Original identification documents of the deceased
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•
Original identification documents of the person making the account
enquiry
•
Original proof of relationship between the person making the
account enquiry and the deceased (e.g., marriage certificate for
spouses, birth certificate for parents/children)
•
Original will of the deceased, if any
If you have difficulties in meeting the documentation requirements, please
reach out to the banks to discuss what else you may do and the banks
would endeavour to assist you.
