Bank Thresholds for Releasing Deceased Estate Funds in South Australia

One of the most frustrating experiences in estate administration is walking into a bank — or calling one — to access your deceased parent's account, only to be told the funds are frozen and probate is required. What no one explains is that each bank sets its own internal threshold for releasing funds without a court grant, and those limits vary significantly.

In South Australia, the Succession Act 2023 sets a statutory floor of $15,000 for direct transfers without probate (see Section 100). But banks operate above this using their own risk policies, and many will freeze accounts well below their internal ceiling simply because a branch teller misapplied the rules. Knowing the actual limits — and how to invoke them — can save weeks of delay and potentially thousands in court fees.

Why Accounts Get Frozen After Death

When a bank is notified of a customer's death, it places a hold on solely-owned accounts. This protects the institution from liability if funds are released to the wrong person. Joint accounts generally continue operating under the surviving account holder's name, with a Death Certificate needed to remove the deceased's name from the account.

The freeze doesn't mean the money is inaccessible forever. It means the bank needs satisfactory authority before releasing funds. What counts as "satisfactory" is where institutions diverge.

The Major Bank Thresholds in South Australia

These are the current internal limits understood to apply at major institutions. All figures should be verified directly with the bank, as internal policies can change without public notice.

BankSA (Westpac subsidiary) BankSA enforces one of the stricter limits in South Australia: accounts totalling more than approximately $50,000 will generally require a formal Grant of Probate or Letters of Administration before funds are released. This catches many families off guard — an executor managing a modest savings account of $60,000 with BankSA will face a court application that the same balance at another institution would avoid.

Commonwealth Bank of Australia (CBA) CBA generally requires a grant if the value of solely-held accounts exceeds $100,000. Below this, the bank may release funds on a signed Deceased Estate Declaration and Indemnity form — a legal document that transfers liability to the person receiving the funds.

Westpac Westpac's threshold depends on the specific account type and subsidiary but generally sits between $40,000 and $100,000 for informal release. Accounts below this range can often be accessed with a Death Certificate, a copy of the will (if one exists), and a signed indemnity form.

ANZ ANZ requires a certified copy of a formal Grant of Probate or Letters of Administration if the total value of the estate funds in solely-owned accounts is $100,000 or more. Below this threshold, ANZ may release on a Next of Kin Statutory Declaration.

National Australia Bank (NAB) NAB evaluates accounts individually. For funeral invoice payments, NAB enforces a cap of approximately $15,000 that can be released directly to a funeral director from frozen estate funds, regardless of the total account balance — a useful provision in the critical first days.

What the Bank Will Ask For

Regardless of the threshold, every institution requires a certified Death Certificate before any action is taken on the account. Beyond that, expect requests for:

• Proof of identity (typically 100 points across the executor or next of kin)
• A copy of the will (if one exists) identifying the executor
• A Deceased Estate Declaration or Next of Kin Indemnity form (varies by bank)
• Certified copy of the Grant of Probate or Letters of Administration (if the balance exceeds the informal release threshold)

The Australian Banking Association's Banking Code of Practice (Part B8, Chapter 45) requires banks to act on instructions within 14 business days of receiving a properly completed grant and supporting documentation. If a bank is taking longer without explanation, you can reference this obligation.

The $15,000 Statutory Safe Harbour: Section 100

Section 100 of the Succession Act 2023 creates a distinct statutory mechanism separate from bank internal policies. Any party — not just banks — holding $15,000 or less in cash or personal property belonging to the deceased may transfer it directly to a surviving spouse, domestic partner, or child without requiring any formal court grant.

In theory, this applies to banks too. In practice, individual tellers often aren't trained on Section 100 and will fall back on the bank's internal policy. If the balance is under $15,000 and the bank refuses to release without probate, ask to speak with the deceased estate team directly and cite Section 100 of the Succession Act 2023. Having the provision written down and printed is helpful.

Funeral Expenses: The One Exception All Banks Must Honour

Most banks — across all the institutions above — will release funds directly to a funeral director to pay a funeral invoice, regardless of the account balance. This is not statutory; it's standard practice that reflects the Banking Code's recognition that funerals are an unavoidable and time-sensitive estate expense.

The requirement is straightforward: present the bank with the original funeral director's tax invoice. The bank will typically transfer the amount owed directly to the funeral home from the frozen account. NAB caps this at $15,000 for direct funeral releases; other institutions vary.

This provision is separate from the estate's overall access situation. Even if probate is ultimately required to access $200,000 in savings, the funeral can still be paid immediately from those same funds.

When Probate Is Unavoidable

If the deceased's solely-held accounts exceed the relevant bank's internal threshold — or if there is real estate in the sole name of the deceased — probate or letters of administration cannot be avoided. For estates where a family home is involved, even a modest Adelaide property is likely to push the estate value well above $500,000, incurring a CourtSA filing fee of $2,628.

For estates entirely below $100,000 with no real property, Section 73 of the Succession Act 2023 offers an alternative: referral to the Public Trustee, who can administer the estate without a court application, though at a commission cost of 4.4% of gross assets.

The South Australia Probate Process Guide provides a full breakdown of when probate is required, how to file via CourtSA without triggering costly requisitions, and how to navigate bank release procedures across the major South Australian institutions.

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