How to Handle Financial Accounts After a Partner’s Death

1. Introduction
The death of a partner brings emotional challenges and practical responsibilities. One of the immediate priorities is managing financial accounts. This guide provides a clear and practical approach for Thai spouses handling financial matters in Germany after the death of a German partner, addressing joint accounts, individual accounts, and cross-border considerations.

 
2. Understanding Account Types
2.1 Individual Accounts
These are accounts solely in the deceased's name. Accessing these funds often requires proof of inheritance or specific legal processes.

2.2 Joint Accounts
Joint accounts typically remain accessible to the surviving account holder. However, in Germany, the deceased’s share of the account may form part of the estate and be subject to inheritance law.

2.3 Foreign Accounts
If your partner held accounts in Thailand or other countries, different rules and processes might apply. Coordination between German and Thai financial institutions may be necessary.

 
3. Immediate Steps to Take
3.1 Notify the Bank
Inform the bank of your partner’s passing as soon as possible. Provide basic details, such as the deceased’s full name, account numbers, and date of death.

3.2 Gather Documentation
Prepare the following:

Death certificate (preferably in German or with a certified translation).
Certificate of Inheritance (Erbschein) or other proof of entitlement.
Proof of relationship, such as a marriage certificate.
3.3 Secure Joint Accounts
If you shared a joint account, ensure that you secure the account to prevent unauthorized access. Discuss with the bank how the account will be managed going forward.

3.4 Freeze Individual Accounts
Banks usually freeze individual accounts upon notification of the account holder’s death. Accessing these funds will require legal documentation.

 
4. Accessing Individual Accounts
4.1 Obtain a Certificate of Inheritance
In Germany, you will likely need an Erbschein to access your partner’s individual accounts. This legal document proves your entitlement to inherit the funds.

4.2 Coordinate With Co-Heirs
If there are multiple heirs, decisions about the distribution of funds must be made collectively. Mediation or legal assistance can help resolve disputes.

4.3 Follow the Bank’s Process
Banks have specific procedures for handling deceased customers’ accounts. Work closely with the institution to fulfill all requirements.

 
5. Managing Joint Accounts
5.1 Clarify Ownership Shares
German law generally presumes joint accounts are shared equally, but the deceased’s share is part of the estate and may require formal inheritance proceedings.

5.2 Continue Using the Account
As a surviving account holder, you may continue using the account for personal needs. However, avoid withdrawing funds beyond your share until inheritance matters are resolved.

5.3 Convert the Account
Consider converting the joint account into an individual account to simplify future management.

 
6. Handling Foreign Accounts
6.1 Thai Bank Accounts
For accounts in Thailand, you may need to provide local banks with translated and notarized copies of the death certificate and inheritance documents.

6.2 Cross-Border Transfers
If transferring funds from German to Thai accounts, ensure compliance with both countries’ financial regulations and currency transfer policies.

6.3 Double Taxation Concerns
Coordinate with tax advisors to avoid double taxation on inherited funds under German and Thai tax laws.

 
7. Tax Implications
7.1 Inheritance Tax in Germany
The funds in the accounts may be subject to inheritance tax, depending on:

The value of the estate.
Your relationship to the deceased.
Applicable tax-free allowances (e.g., €500,000 for spouses).
7.2 Reporting Obligations in Thailand
Large transfers into Thai accounts may need to be reported to local authorities.

 
8. Practical Tips
8.1 Seek Legal and Financial Advice
Engage professionals familiar with German and Thai inheritance laws to guide you through the process and avoid complications.

8.2 Keep Records
Maintain detailed records of all correspondence, documents, and transactions related to your partner’s accounts.

8.3 Avoid Premature Withdrawals
Do not withdraw funds from individual or joint accounts beyond your immediate needs until legal matters are resolved to avoid disputes or penalties.

 
9. Example Scenario
9.1 Scenario
A Thai wife learns her German husband had one individual account and one joint account with her.

The individual account contains €50,000, and the joint account holds €20,000.
The wife notifies the bank of her husband’s death and provides a death certificate.
9.2 Steps Taken

She applies for an Erbschein to claim the individual account.
The bank freezes her husband’s share of the joint account (€10,000), allowing her to use the remaining €10,000.
A financial advisor helps her transfer the inherited funds to Thailand while minimizing taxes.
 
10. Conclusion
Handling financial accounts after a partner’s death can be a complex process, but with the right steps, it can be managed effectively. Understanding account types, gathering the necessary documentation, and working closely with financial institutions are key to ensuring a smooth transition. For international cases, particularly involving Thai spouses, addressing cross-border challenges and seeking professional advice ensures compliance and financial security.