Is the card blocked after the owner's death

Do banks block a card after its owner's death?

A card issued for receiving pension or social benefits will be blocked within a few days after the owner's death. Civil registry offices (ZAGS) cooperate with the Pension Fund and social protection authorities, which transfer information about deceased individuals to the bank to block cards and accounts.

If the question concerns a regular debit card issued for personal purposes, it is unlikely to be blocked in a short time. The bank cannot promptly receive information on all its clients and carry out the blocking procedure. The only exception is when relatives of the deceased, prosecutor's office, and police representatives contact the financial institution with a demand to block the accounts.

 Please note that money on a deceased person's card is part of the inheritance. Its improper or unlawful use is a violation of legislation, therefore, a person who uses such a card risks becoming a defendant in criminal proceedings or accidentally taking on all debts owed to credit institutions or MICROFINANCE COMPANIESregistered under the deceased. 

Is it possible to pay with a deceased person's card?

According to current legislation, paying with a deceased person's card and using the funds in their accounts in any way before accepting the inheritance is prohibited. Consequently, heirs can only access the funds on the cards 6 months after the death of their direct owner.

However, is it really possible to prove the fact of using someone else's card for in-store payments, online purchases, or withdrawing cash at ATMs? In reality, this is not a problem at all. The fact of illegal use of someone else's card can be proven, for example, if one of the heirs contacts the bank or law enforcement agencies with the death certificate of the specific cardholder. In this case, the bank is obliged to respond and initiate an audit of the legality of transactions starting from the date of the owner's death. If the use of the card by a specific person is proven, they will be ordered to return the spent amount to the heirs through court. The offender faces liability under Article 158 of the Criminal Code of the Russian Federation for misappropriation of someone else's funds. The article provides for punishment in the form of imprisonment for up to 2 years.

In the event that information about a person's death has not been transmitted to the Pension Fund, a pension payment or allowance may be credited to the deceased person's card. If relatives or individuals with access to the card withdraw these funds, the Pension Fund will demand the return of the overpaid amount through the court. 

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Inheriting funds on a card

A person can have two types of cards: debit and credit. The inheritance procedure differs depending on this.

Debit card

Money from the deceased's debit card becomes part of the inheritance just like any other property. Notably, it is not the card itself that is inherited, but only the funds on it.

The funds are subject to the rules established for the entire inheritance. The law sets a period of 6 months during which one can accept the inheritance and gain the right to manage the acquired property.

If the deceased has several direct heirs, the property is divided among them in equal shares, including all funds in accounts and on cards. Any claims to funds located on cards before the expiration of six months are completely illegal.

Lawyers advise paying attention to an additional point: an heir who illegally spends funds from a deceased relative's card may be declared unworthy. This situation entails criminal proceedings and an investigation into whether the heir committed potential illegal actions against the testator.

There is an exception to the rule. The only case in which relatives can receive funds from the deceased's accounts is funeral expenses. With the participation of a notary, the exact amount is established (no more than 100 000 RUB) and an order for their issuance by the credit institution is issued. 

Credit card

The credit limit itself is not inherited. The money does not belong to the person, but is the property of the credit institution. If the deceased used a certain amount, the heirs will have to repay the resulting debt, because the obligations pass to them along with the inheritance. To prevent penalties, interest, and other sanctions applied by the bank against defaulters from increasing the debt amount, the heir should contact the credit institution as soon as possible and resolve the issue of suspending accruals.

According to the law, heirs repay the testator's credit debt within the limits of the accepted inheritance value. 

Credit debt does not pass to the heirs if the owner concluded a life insurance contract stating that debts in the event of death do not pass to relatives.

What to do with a deceased person's card — the answer in the laws

Clause 1.5 of Bank of Russia Regulation No. 266-P dated 24.12.2004 “On the Issuance of Bank Cards and Operations Performed Using Them…” states that cards can be credit and debit. The banking product is tied to a specific account and can be represented by the holder's money (deposit) or credit (bank money). The plastic card itself belongs to the credit institution that issued it, therefore, after the owner's death, it is correct to contact the bank and surrender the plastic.

The testator's fundsheld in the bank should be reported to the notary. In this case, after 6 months, the heir will be able to receive them at the bank's cash desk or transfer them to their own account by application. 

Frequently Asked Questions

To conclude the article, we will answer frequently asked questions.

What to do with a deceased relative's loan?

Documents regarding the borrower's death must be provided as soon as possible. If the lending institution is not notified, interest will continue to accrue on the loan. Subsequently, resolving the issue of canceling penalties will be more difficult and will have to go through court.

What to do with a deceased relative's deposit?

The deposit, like other funds of the deceased, forms part of the estate. However, relatives must also notify the bank of the death of the person who opened the account. If this is not done, the lending institution will accrue interest and may later demand the return of charges made over 6 months (until relatives accept the inheritance).

Are heirs obliged to notify the bank of the death of the card and account holder?

No, the legislation does not mention any such obligation. The lending institution often learns of a client's death from the notary handling the estate case.