Legal Tip 415: Cheques and Death

Discussion in 'Wills & Estate Planning' started by Terry_w, 12th May, 2023.

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  1. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Cheques are not very common these days but are still sometimes used.


    Did you know that If a person dies after paying something by cheque the issuer of the cheque has a duty not to pay that cheque on receiving notice of the payer’s death.


    Example

    Homer is about to buy a something and he pays for it with a cheque. His spouse Marge doesn’t want him to get that item. After posting the cheque Homer is killed on the way home from the post office.

    Marge immediately notifies ANZ Bank of Homer’s death (after calling the ambulance perhaps).



    Later if the cheque is cashed the executor would have claim against ANZ bank for the money paid.


    s 90(1)(c) Cheques Act 1986

    CHEQUES ACT 1986 - SECT 90 Countermand of payment and notice of death or mental incapacity
     
    Terry_w, 12th May, 2023
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