However, if the other beneficiary is someone you do not know well, someone who you suspect will spend all the money right away, or someone who will not readily help you pay for a future bill, then you should keep the account open, perhaps until two years have passed since the date of death.

Is it illegal to keep a bank account open when someone dies?

It’s illegal to take money from a bank account belonging to someone who has died. This is the case even if you hold power of attorney for them and had been able to access the accounts when they were alive. Once the bank has been notified of the death, the account will be frozen.

How long do Swiss banks keep records?

Most business records in Switzerland, which includes all transactions in bank accounts, must be retained for 10 years; if an account is closed, there is therefore likely to be no record of it at all once 10 years has gone by.

What happens to a Swiss bank account after death?

In case the bank was not informed that the account holder has passed away the bank is still authorized to effect payments after the death to the beneficiaries of the power of attorney. Under Swiss law, each heir has the individual right to request account information.

Who are the heirs to a Swiss bank account?

Therefore always be careful what jurisdictions you choose for your trust or offshore bank account. Under Swiss law, children, the spouse and the parents of the deceased have mandatory inheritance rights. The Swiss Federal Supreme Court gives the undisputed right to the heirs to collect all bank account information from banks.

When did Swiss banks start keeping accounts private?

Swiss banks have a long history of keeping account information private. After the arrest of two employees of a leading Swiss bank in 1932, Switzerland passed the Swiss Federal Banking Act of 1934.

Who is the agent for the bank in Switzerland?

Here, the bank is the agent for the client. According to the Swiss Code of Obligations, you as a principal are entitled to receive all relevant information in connection with the activities of the account. Such information includes, but is not limited to, current account statements.