What happens if I have savings in my bank account and I die? Does the bank keep the money?

Many users from various entities of the Finance system they want to know what would happen to the money in their savings account in the event of their death. Along these lines, you should know that this case is regulated by the Superintendency of Banking, Insurance and AFP (SBS), an entity that provides information on deposits, insurance, credits Y pensions of the deceased person. HERE we explain all the information about what happens to our savings if we die and leave no inheritance, as well as the recommendations that must be taken into account by relatives in these cases.

What happens if I have savings in the bank and I die?

As explained to La República the legal manager of the Peruvian Association of Insurance Companies (APESEG)Eduardo Chavez, money does not become the property of the bank, but it must be granted to the relatives or direct heirs.

“If you are a bank saver and unfortunately you die, that money will not be kept by the bank. What the relatives have to do is present the intestate successionor also called declaration of heirsand once the declaration is filed, the legal heirs of the bank will be able to access the money of the person who kept their savings while alive,” explains the specialist.

How is the declaration of heirs made?

In cases in which the deceased family member and account holder has not designated a will, you must proceed to process an intestate succession or declaration of heirs.

This document is drawn up before a notary or in the Power of attorneythen you must enroll in public records and finally it is presented in the financial institution. “The bank automatically releases those savings in favor of the legal heirs,” reports Chávez.

Likewise, if there is a will, the relatives have to formalize it in a notary’s office and register it in public records to be able to access the funds that the holder kept while he was alive.

recommendations

In addition, the legal manager of the Peruvian Association of Insurance Companies (APESEG), recommends that people always find out if the relative who died had any benefit associated with your savings account, such as life insurance, for example.

“When you are a bank saver, they often reward you with life insurance. Then also the relatives, when this person dies, will be able to collect that insurance. Some banks offer it as part of their commercial offer”, comments Chávez.

What happens if a relative dies and has debts with the bank?

The legal manager of the Peruvian Association of Insurance Companies (Apeseg), Eduardo Chávez, explains to The Republic that there are two types of modalities activated and one pending application.

In the first, the balance of the debt is guaranteed. “When you insure the unpaid balance, if the credit holder dies or is left with a permanent and total disability —which does not allow him to generate income—, the insurance company automatically takes over the absolute debit balance and the family members do not have to pay anything ”, clarifies Chávez about the most requested variety.

A second, less required option —because of its high payment premium— is the one that safeguards the initial balance of the debt. “If the person dies or becomes totally and permanently disabled, and cannot generate income, the insurance company writes two checks: one in the name of the bank for the balance of the debt and another second check for the difference with respect to the initial amount in favor of of the legal heirs of the person”, adds the also spokesperson for Apeseg.

What is lien insurance?

It should be noted that there is also credit life insurance that is present in different banking operations, such as applying for a mortgage loan, a consumer loan, a mortgage-backed loan or in the case of having a credit card.

“If the holder of the card or the loan for any reason dies —whether by natural death or accidental death— or is left in a state of total permanent disability and cannot generate income, the insurance company will take over the debt that this person maintained (…). In other words, the relatives will not have to pay anything at all.”, Chavez mentions

Likewise, this mechanism would be a requirement of the banks within the operations. “The bank will always consider credit life insurance that will be backed by the insurance company with which the bank works,” Chávez emphasizes. “This will make it possible that if the credit card holder dies or is totally and permanently disabled, the deduction is activated and the insurance company takes charge of the debit balance of the card or of the loans”, he concludes.

How to request financial information about my deceased relative?

The relatives or heirs of a deceased citizen can access the following services through the SBS, all of them are totally free. Likewise, according to the procedure, a period of time is established for the delivery of the information.

Likewise, the procedure can be carried out virtually to obtain the certificate of life and/or personal accident insurance policies and the proof of affiliation status with the SPP of the deceased relative. These are the steps to carry out the process online:

• Enter https://servicios.sbs.gob.pe/serviciosenlinea
• Check the option “Informed heirs”
• Next, enter your information to be able to access the process. Once there, select the information you want to request. It should be noted that the required documents (death certificate or declaration of presumed death, Electronic Certificate of Declaration of Heirs or Will registered in Public Registries, in case a proof of deposits is required, among others) are attached in PDF.

Citizens can also go in person to the user service offices or to the parties table. To do this, you must fill out the requested forms according to the financial information you wish to access. These can be found at https://www.sbs.gob.pe/usuarios/nuestros-servicios/servicios-sbs/herederos-informados.

How to see my debt report in the SBS?

To access your SBS debt report, you must have your ID or other identity document on hand. Also, follow these steps:

• Enter the SBS platform through the following link: https://www.sbs.gob.pe/usuarios/nuestros-servicios/reporte-de-deudas
• Select the option SBS online services.
• After the main page of SBS online services appears, choose the option SBS debt report.
• To access the information, you must log in by entering your identity document number (DNI) and password. If you do not have an account, you will need to register.
• Finally, you click on login and you will get the debt report for the last month, the list of credits you have contracted with companies in the financial system and the rating you have been assigned.

Do I lose my money if the bank or municipal fund where I have savings goes bankrupt?

The Deposit Insurance Fund covers all financial entities supervised by the SBS and authorized to collect deposits. There is no cost to depositors. When the dissolution of the company is declared, the SBS provides a period of 60 days for the liquidators to submit the list of persons covered.

The FSD will initiate coverage payments within a period not exceeding 10 business days after receiving said relationship. These funds will be transferred to another financial entity in the name of the saver, says Jorge Luis Ojeda, professor of finance at the UPC Business School.

“(Insurance payment) takes time, it is not automatic; but there is certainty that one will not lose. The important thing is that interest is not lost either. It is the amount that the person had at the time of the closing of the financial institution”, explains the specialist.

Also, the FSD covers “only registered deposits”; that is to say, where the name of the owner or owners of the account appears, whether natural persons or private non-profit legal entities. In detail, it covers these account types:

• Savings account
• Current accounts (demand deposits)
• fixed term accounts
• Compensation accounts for time of service (CTS).

Out of ignorance, some people might think that their money will not be safe in a municipal or rural box, compared to a large bank. “There are people who mistakenly believe that when you save in a small rural or municipal fund you are completely unprotected if it goes bankrupt. But it is not so much like that,” said Jorge Carrillo Acosta, a professor at Pacífico Business School.