A bank account forms part of the inheritance estate, and the death of a bank depositor transfers it to the heirs in accordance with the rules of succession (Article 1710 of the Civil Code (AK)). Where there are more than one heir, each of them takes from the bank account the share corresponding to his or her portion of the inheritance. If, for example, one of the parents has passed away leaving as heirs his or her three children, then each of them inherits 1/3 of the amount deposited in the bank account.
In order to withdraw the amount from the bank account, the heir must, as a rule, produce to the bank a certificate of inheritance (kleronomitirio) or a declaratory court judgment, or at least the documents required for the issuance of a certificate of inheritance — this is what the death of a bank depositor entails. The vast majority of banks, perhaps all of them, however, require the production of a certificate of inheritance. To obtain a certificate of inheritance, certain documents must be gathered and a court hearing must take place.
Under a money deposit agreement in a joint account, concluded between two or more interested parties and a bank, it is agreed that the holders of the account will deposit money into it and that, in parallel, each holder may make partial or total use of the account, withdrawing money from it without the cooperation of the other co-holders. Under this agreement, each holder may withdraw all the money deposited in the account, and accordingly the bank is obliged to pay out the funds of the account only once. Therefore, in the event that one co-holder withdraws all the money from a joint account, the bank has no obligation or liability towards the remaining co-holders in respect of those funds.
- See also article Tenant Eviction
- See also article Change of Name
- See also article Payment Order
- See also article Divorce
- See also article Certificate of Inheritance
- See also article Renunciation of Inheritance by a Minor
- See also article Joint Custody of a Child
FREQUENTLY ASKED QUESTIONS ON THE DEATH OF A BANK DEPOSITOR
1. What happens to the bank account after the death of the holder?
The bank account is included in the inheritance estate and is transferred to the heirs in accordance with the provisions of succession law (Article 1710 of the Civil Code (AK)). Where there are several heirs, each is entitled to the share corresponding to his or her hereditary portion. For example, if the deceased leaves three children as sole heirs, each is entitled to 1/3 of the account balance. A different regime applies to a joint account with a co-holder clause, where the balance, as a rule, passes to the surviving co-holder and is not automatically included in the inheritance estate.
2. What can I do to withdraw the money from the bank?
The bank, as a rule, will not release the amount without supporting legal documents. In practice, almost all banks require the production of a certificate of inheritance (kleronomitirio), that is, a court certificate confirming the status of the heir and his or her share. Alternatively, a declaratory court judgment may be accepted. At the same time, the deposit must be declared to the tax authority and any inheritance tax must be paid, with a relevant certificate issued by the Independent Authority for Public Revenue (AADE). If a dispute is pending between the heirs, the waiting period may be considerably extended.
3. How long does the whole procedure take?
The time required depends on the completeness of the documents and the issuance of the certificate of inheritance. From the filing of the application before the Court of First Instance, the issuance of the certificate of inheritance ordinarily takes between three and six months, depending on the workload of the court. Account must also be taken of the time-limit for renunciation of inheritance (four months from knowledge of the death, or one year if the heir resides abroad). Once the certificate of inheritance and the tax clearance certificate have been produced, the bank completes the payout within a few weeks.
4. What documents do I need to obtain a certificate of inheritance?
The required documents are: a death certificate, a certificate of next of kin, a certificate of non-publication of a will (or a copy of the will together with the publication record), a certificate of non-renunciation and of non-contestation of inheritance rights. Also required are the heirs’ identity cards, family status certificates, and a bank statement of the account balance as at the date of death. In parallel, an inheritance tax declaration is drafted and submitted to the competent tax office (DOY). Properly assembling the documents from the outset prevents delays and re-submissions.
5. What happens with a joint account in which I was a co-holder?
In the case of a joint account with a clause under Law 5638/1932, upon the death of one co-holder, the entire deposit passes automatically to the surviving co-holders, without forming part of the inheritance estate as regards its disposition. The bank is obliged to release the amount to the survivor and bears no liability towards the heirs of the deceased. This does not, however, mean that any claim by the heirs is precluded: where it is established that the funds originated exclusively from the deceased, claims for unjust enrichment may arise against the surviving co-holder.
6. What is the role of the lawyer in this procedure?
The lawyer undertakes the investigation of the inheritance situation, the gathering of certificates, the drafting and filing of the application for a certificate of inheritance before the Single-Member Court of First Instance, and the monitoring of the case until issuance. He or she also assesses the advisability of accepting or renouncing the inheritance, particularly where the deceased had debts, and liaises with the bank for the release of the funds. In cases of disagreement among heirs, or claims arising from a joint account, the lawyer files the appropriate actions. The firm has substantial experience in inheritance and banking law matters.