When a loved one passes away suddenly, one of the family's biggest concerns is how to withdraw funds from the deceased's bank account to cover funeral expenses or urgent debts. Arbitrarily using an ATM card, password, or presenting the original passbook at the counter while skipping legal procedures not only results in bank rejection but also risks serious legal trouble with other co-heirs.
Can you withdraw money from a deceased person's bank account in Vietnam without declaring the inheritance? Does the bank have the right to "swallow" or permanently freeze this money if the family is divided and refuses to sign the paperwork together? For overseas Vietnamese who cannot return to handle the matter, how will these assets be resolved? The article below analyzes the current legal framework, the procedure to unfreeze the account, and the practical mistakes you must avoid to fully protect your rights.
Legal framework governing the bank deposits of the deceased
The entire balance in the payment account or savings passbook of the deceased is immediately identified as the inheritance estate. The law strictly regulates the confidentiality and asset safety responsibilities of credit institutions. Therefore, banks are absolutely not allowed to automatically disburse savings deposits or account funds to anyone claiming to be a family member, whether a spouse or biological child, without a legally recognized inheritance document.
To withdraw these funds, the procedure must strictly follow the credit institution's guidelines for disbursing inherited savings deposits. The core legal basis required by all banks is a notarized Agreement on estate division or Document declaring the inheritance. This means that if the estate declaration step at the competent authority is incomplete, no one has the legal right to withdraw that money.
Legal procedures to unfreeze a bank account
The process of transferring the ownership of funds in a deceased person's account to the heirs cannot "cut corners". You must follow these steps:
- Step 1: Trace the account. If there is no savings passbook, the family must appoint a representative to bring the Death Certificate and documents proving the relationship to the bank to request account balance information for estate declaration purposes.
- Step 2: Post notices and notarize the estate. Gather all eligible heirs at a notarial practice organization to prepare the estate division or declaration dossier. This dossier will be publicly posted for 15 days to prevent disputes.
- Step 3: Withdraw money at the bank. After obtaining the notarized Agreement on estate division or Document declaring the inheritance, the designated recipient will bring this document along with the Death Certificate and personal ID to the bank for account closure. The bank will verify the dossier to ensure accuracy and safety before disbursing the funds.
Legal risks and common practical mistakes
During our consultations, we have recorded many cases where families hit a dead end or faced litigation due to the following mistakes:
- Arbitrarily withdrawing money via ATM or Internet Banking: Many believe that having the card and password allows them to freely withdraw money for funerals. Legally, since the account holder has died, those electronic transactions are unauthorized. If other co-heirs find out, you could be sued for asset misappropriation. Additionally, once the bank discovers the customer is deceased, they will immediately lock the account.
- Family disputes and refusal to sign papers: The notarial office will only certify the estate division document with the presence (or valid power of attorney) of ALL heirs. If just one person refuses to cooperate or demands a larger share, the dossier is suspended indefinitely. The funds in the bank will remain frozen until the family reaches an agreement or obtains a Court Judgment dividing the assets.
- Overseas heirs abandoning the assets: Many overseas Vietnamese, intimidated by complex procedures and unable to travel, decide to give up halfway, leaving the entire family's dossier in Vietnam "hanging". In reality, the assets are not "swallowed" by the bank; individuals abroad can easily draft a Power of Attorney at the Embassy and send it to Vietnam for processing.
The role of DEDICA in handling bank account inheritance
Facing obstacles ranging from strict bank administrative procedures to internal family disagreements, a lawyer's intervention is the most effective "key" to untangle the mess. DEDICA provides a full-service power of attorney package: from verifying balances across banks, reviewing the legality of personal documents, to representing you at the notarial office. Notably, if the family faces fierce disputes that cannot be settled, DEDICA's litigation lawyers will directly represent and protect your legal rights in Court.
Conclusion
In summary, you cannot withdraw money from a deceased person's bank account without completing the estate declaration procedure. To obtain these funds safely and legally, the mandatory process includes: (1) tracing account information; (2) posting notices and notarizing the estate division/declaration document with the consensus of 100% of the heirs; and (3) presenting a valid dossier to the bank. Mistakes such as unauthorized ATM withdrawals or concealing heirs entail severe legal risks. For families with overseas members or ongoing disputes, the optimal solution is utilizing a power of attorney for a lawyer to prevent the account from being frozen indefinitely.
Withdrawing a deceased person's savings may seem straightforward but harbors many legal complications, especially when foreign elements or family disputes are involved. DEDICA Law Firm is ready to support you with bank account inheritance procedures in Vietnam. Contact DEDICA for in-depth legal consultation.
The content is for reference based on the legal regulations at the time of writing. Each case has unique circumstances; please consult a DEDICA lawyer for precise advice.
