The Aftermath of Joint Account After Death of an Account Holder

This account allows everyone to manage and access the funds easily. In fact, it’s not just for family — you can open a joint account with business partners. But what happens if one of the account holders passes away? In this write-up, we will understand what happens to a joint account after an account holder’s death. 

What Happens to a Joint Account After the Death of an Account Holder?

The procedures following the death of a joint bank account holder are outlined in Article 379 Clause 4 of the Commercial Transactions Law. In case of an account holder's death or legal incapacity, the remaining holders or the deceased’s legal heir must notify the bank within 10 days. 

Once notified, the bank will freeze withdrawals as per the deceased's share until a court appoints successors and settles any debts in the UAE. If the bank receives a death notice from any authority, such as a hospital or police, they will also freeze account activity until the court issues a succession certificate.

The Role of Courts

The court will issue an inheritance declaration and provide instructions on how to distribute the deceased's estate, including joint accounts. 

• For Muslims: The share in the joint account is given out as per the Shariah law. 
• For Non-Islamic individuals: The distribution is according to a Will authorised by UAE courts. 

If no Will exists, the share is usually distributed according to Shariah law unless the legal heir requests the deceased's national law be applied. However, the court has the discretion to decide which law to apply.This process can take weeks or months.

How to Protect Your Share if You Are Part of a Joint Account?

The best way to protect your share of money in a joint account after the death of an account holder is to create a will for such a situation beforehand. You should get the will prepared, notarised, and translated into Arabic — it should be registered with the Judicial Department. 

Before finalising the Will, make sure you determine the shares. In case there is no mention of the share, it would be equally divided among all the account holders. Moreover, make sure that you have a separate individual bank account in place to secure your personal funds. 

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