It is one of the first surprises in any inheritance: the family needs money for the funeral, the notary or simply to keep paying the household bills, and the bank replies that the accounts are frozen. If you know why it happens and which documents unlock the money, you save weeks of back and forth.
Why the bank freezes the accounts
The deceased's money becomes part of the estate and belongs jointly to all the heirs. Until it is known who they are, the bank cannot hand it to any single person. On top of that, Spanish Inheritance Tax rules make financial institutions liable if they release balances to heirs without proof that the tax has been paid or is exempt, so none of them does. That is why the freeze is not lifted with a phone call: it is lifted with paperwork.
The documents the bank will ask for
Death certificate and certificate of last wills
The death certificate is issued by the Civil Registry. The certificate of last wills is requested from the Ministry of Justice once 15 working days have passed since the death, and shows whether there was a will and before which notary.
Will or declaration of heirs
If there was a will, an authorised copy is requested from the notary. If there was none, a declaration of heirs must be obtained first, since it is what establishes who inherits. Without one of the two, the bank cannot know whom to pay.
Proof of Inheritance Tax
The tax self-assessment, paid or with the relief applied. In the Valencian Community, spouses, children and parents usually get 99% relief, but the return must still be filed for the bank to release the money.
Deed or partition document
With all of the above, the bank normally asks for the deed of acceptance and award of the inheritance, or a private document signed by all heirs stating who receives each balance.
What can be paid while the accounts are frozen
The freeze is not absolute. Many banks allow the funeral invoice to be paid from the deceased's balance, on presentation of the invoice in their name. And the law itself allows the frozen money to be used to pay the Inheritance Tax, so that heirs do not have to advance it out of their own pocket. It is best to request this in writing, with the exact amount of the self-assessment.
It is also usual to ask the bank for a certificate of balances at the date of death. That is the figure to be declared in the inheritance. Having it early avoids valuation errors that have to be corrected later.
If the account had another holder, the bank may freeze the share that belonged to the deceased. The fact that the other holder could operate the account while the deceased was alive does not make the balance theirs: what belonged to the deceased forms part of the estate, and simply withdrawing it can cause disputes between heirs and problems with the tax authorities.
How long it takes to release the money
It depends almost entirely on how fast the documents are gathered. With a will, heirs in agreement and the tax filed on time, banks usually release the balances within a few weeks of receiving the complete file. Without a will, or with heirs abroad, it takes longer because who inherits must be settled first. What never pays is waiting: Inheritance Tax has a 6-month deadline from the date of death, and surcharges accrue even while the money is still frozen. More detail in how long it takes to receive an inheritance.
How we handle it at Equus Capital
We request the certificates, locate every account and product of the deceased, obtain the balances at the date of death, file the tax with the relief that applies and deal directly with each bank until the money reaches the heirs. If any heir lives outside Spain, we do it all remotely, with no need to travel. The first consultation is free.
Frequently asked questions
Why does a Spanish bank freeze a deceased person's accounts?
Because the money becomes part of the estate, and the law makes the bank liable if it releases it without knowing who the heirs are and without proof that Inheritance Tax has been paid or is exempt.
Can the funeral be paid from the deceased's account?
Many banks allow it on presentation of the funeral invoice. It is common practice, although each bank sets its own conditions, so it is best to request it in writing.
Can the frozen money be used to pay Inheritance Tax?
Yes. The rules allow frozen balances to be used to pay the tax itself, so heirs do not have to advance it.
What happens to an account with a joint holder?
The bank may freeze the share that belonged to the deceased. The fact that the joint holder could operate the account does not make the whole balance theirs: the deceased's share forms part of the estate.
How long does it take to receive the money from the bank?
With a will, agreement between heirs and the tax filed, it is usually resolved within a few weeks of the bank having the complete file. Without a will or with heirs abroad, it takes longer.