Bank Accounts After Death in New Brunswick: What Happens and What to Do

The bank account is usually the first thing families run into after a death. Bills are coming due, funeral costs need paying, and the account — which had money in it yesterday — is now locked. Understanding exactly why this happens in New Brunswick, and what your options are, is one of the most immediately practical things an executor or surviving family member can know.

Why Banks Freeze Accounts

When a financial institution is notified of a client's death, it has a legal problem. If it releases funds to someone claiming to be the executor and a later will is discovered — or the person turns out not to be the right executor — the institution could be forced to pay twice. The executor gets the money; a court then rules they had no authority; the institution owes the true beneficiary the same amount again.

To protect against this risk, banks freeze individually-held accounts and refuse to release funds until they receive a court document formally confirming the executor's legal authority. In New Brunswick, that document is the Letters Probate (with a will) or Letters of Administration (without a will).

This is not a statutory requirement in the sense of a New Brunswick law ordering banks to freeze accounts. It is an internal institutional risk management policy. Different banks have different internal thresholds for when they insist on court documents — which is why you will get different answers depending on which institution you call.

Joint Accounts: What Happens Automatically

A joint bank account held with right of survivorship operates differently from an individually-held account. When one joint holder dies, the surviving holder's interest in the full account balance is automatic — by operation of law. The funds do not form part of the probate estate, and no court order is required to access them.

The surviving joint holder typically needs to present:

• The death certificate
• Their own identification
• A request to the bank to remove the deceased's name from the account

This is usually a straightforward administrative process at the branch level. The bank may want a few days to update their records, but it does not require a probate application.

Important distinction: This applies to accounts held as joint tenants with right of survivorship. If the account was set up differently — as tenants in common, or simply as a joint account for convenience without survivorship rights — the deceased's share may form part of the estate. The exact structure of the account can sometimes only be confirmed by the bank.

Informal Release: When Probate May Not Be Required

For small account balances, many banks have informal internal release policies. If the account holds only a modest amount — commonly somewhere below $25,000, though this varies significantly by institution — the bank may release funds without demanding a full court grant, based on an indemnity agreement signed by the executor or next of kin.

There is no New Brunswick statute that sets a universal dollar threshold for informal bank releases. Each institution decides its own internal limit. If the estate is small, it is always worth calling the bank directly and asking whether they have an informal release process.

The 2026 Bill 30 amendments also expanded the Public Trustee of New Brunswick's small estate authority — estates where assets solely in the deceased's name total $25,000 or less can potentially be administered without formal court proceedings. A letter from the Public Trustee confirming authority may satisfy some institutions as an alternative to full probate.

Accessing Funds for Funeral Costs Before Probate

Funeral costs are one of the most urgent expenses after a death, and they arise before any probate application can possibly be processed. There are several legitimate ways to address this:

From a joint account: If you are a joint holder, you have immediate access.

Life insurance: Many life insurance companies have expedited processes for releasing a portion of the death benefit directly to the funeral home. Contact the insurer immediately with the death certificate and policy information.

Canada Pension Plan death benefit: The CPP death benefit (up to $2,500 for most estates, with a potential top-up to $5,000 for some qualifying contributors) is paid to the estate and is typically released by Service Canada within a few weeks of application with a death certificate and Social Insurance Number.

Pre-paid funeral plans: If the deceased had a pre-paid funeral contract, the funeral home is already paid and no immediate outlay is required.

Funeral homes and the estate: Some funeral homes will extend credit to the estate until the probate grant is received and funds can be released, particularly when it is clear that estate assets exist to cover the cost.

Some banks have a specific exception for releasing funds directly to a funeral home upon presentation of the death certificate and the funeral invoice, even before probate. Ask specifically about this when you contact the institution.

What to Do When You Get the Freeze Notice

When you first encounter a frozen account, take these steps:

1. Get the account numbers and last known balance in writing from the bank
2. Ask the bank specifically: what documentation do they require to release the funds, and is there an informal release process for the balance in this account?
3. Locate the will (if any) and determine whether you are named as executor
4. Begin gathering the documents required for the probate application
5. Open a separate estate bank account (ideally at a different institution) so you have somewhere to receive estate funds once they are released

Do not attempt to access a frozen account by using the deceased's debit card, online banking credentials, or other access methods you may have had. Using another person's banking credentials after their death can constitute fraud regardless of your relationship to them or your ultimate entitlement to the funds.

The New Brunswick Probate Process Guide covers the complete sequence from account freeze to final distribution, with step-by-step instructions for the probate application that unlocks the estate's financial assets and a checklist for notifying every institution of the death.

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