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Depending on the type of account, notifying the bank of the death of a co owner, usually results in half, or even all, of the funds being blocked. There is a safer and more reliable option, and it highlights the importance of choosing the right type of account to avoid unnecessary problems after the death of a spouse or partner.
Q. There is a lot of confusion about joint bank accounts in Spain when one holder dies. Has something recently changed.
No. There has been no recent change in the law. The confusion comes from the way banks handle accounts after a death, which can look very different from what the law actually allows. The legal rules about how the surviving holder may operate the account have been in place for years. What causes problems is banks applying restrictive internal procedures, mainly because they want to protect themselves from liability and comply with inheritance and tax requirements.
Q. What are the two types of shared accounts used in Spain.
Banks work with two different structures.
Mancomunada, where both must sign together.
Indistinta or solidaria, where either holder may operate the account independently.
This distinction is vital. Many people do not realise which one they have, and the consequences after a death are very different.
Q. What happens to a mancomunada account when one holder dies.
The account is effectively frozen. The surviving holder cannot use the money at all. They must have express consent from every heir of the deceased before the bank will allow any movement of funds. This has always been the rule. It is strict and causes delays, which is why people often avoid this type of account without realising they actually have one.
Q. What happens to an indistinta or solidaria account when one holder dies.
This is where people are most surprised. In an indistinta account, the surviving holder may continue to operate the account as normal. Legally, they are allowed to use the money without needing permission from the heirs. This is not a new rule. It is long established, backed by Banco de España guidance and repeated Supreme Court doctrine. The surviving holder has full right of disposition.
Q. If that is the case, why do banks still freeze these accounts.
Because banks prefer to take a cautious approach. Once they learn that a holder has died, many banks automatically restrict the account until certain documents are provided. These usually include a death certificate, details of heirs and confirmation that the inheritance process has begun. Banks do this to avoid responsibility if heirs later complain or if there is an issue with inheritance tax. It is not that the law changed. It is simply bank practice.
Q. Does this mean the surviving holder legally owns all the money.
No. This is the part that often surprises people. Being a cotitular only gives the right to operate the account. It does not automatically give ownership of the money. For inheritance purposes, what actually matters is the origin of the funds. If the money came from the deceased, it forms part of their estate. The surviving holder may still have access to the account, but that does not mean they own what is in it. Heirs may challenge withdrawals if they believe the funds belonged to the deceased.
Q. Have the courts said anything recently about this.
Yes, but these rulings do not change the basic rule. Recent court decisions simply restate long standing principles. The courts again emphasise that an indistinta account gives a right of use but does not determine ownership. To decide who actually owns the funds, the origin must be examined. These rulings confirm the traditional interpretation rather than replace it. That said, they do help explain why banks are cautious.
The Subject Covered Live on Talk Radio Europe 28/11/2025:
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