How To Claim a Deceased Bank Account

Accessing Bank Account After Death

If the bank account has named beneficiaries, these people gain direct access to the account and the deceased’s funds. If the checking or savings account was created as a transfer-on-death account, the money immediately passes to the designated beneficiary after the owner dies. The same happens if the account had a pay-on-death provision.

Not all bank accounts have these provisions. For a regular bank account to be a payable-on-death or transfer-on-death account, the deceased must have filled a Totten of trust document with the bank. If that is not done, you may need the help of an attorney in gaining access to a deceased’s bank account.

Bank Accounts in Probate

If the bank account doesn’t have a designated beneficiary and wasn’t jointly held, it will go through probate. That means that it will be counted as part of the more significant estate of the deceased and distributed according to the will or the state’s intestate laws. If you need help with accessing a bank account after death, you’d better talk to a probate attorney. They will advise you on all probate matters. They will help you take the right action to access the funds.

Can You Access the Joint Bank Account on Death?

Yes. Most bank accounts grant ready access to the co-owner following the death of their partner. You can access your share of the amount in the account. It is easy because many joint accounts carry the right of survivorship. The latter means that if one of the account holders dies, the other assumes full ownership of the entire account and will continue accessing it and using funds as before.

The executor or creditors cannot access a joint bank account to pay for the deceased’s liabilities. This rule also applies to accounts with the payable-on-death provision. However, these accounts can still carry tax liabilities.

What Happens to the Account if the Deceased Had a Will

People make wills to give instructions for distributing their assets after they die. If the deceased included the accounts in their will, the account and the funds will be handled as part of the probate estate.

The money may be distributed based on the terms of the will. The executor will oversee the transfer processes. They may use the amount in the accounts to manage the estate before it is distributed or to pay taxes and creditors.

Consider another scenario where the deceased used a trust as their primary estate planning document. If their bank accounts did not have named beneficiaries, your lawyer can help you file a petition to transfer the account to the trust.

What Happens to the Accounts if They Died Intestate

If the account is payable on death or transfer upon death, its funds will directly go to the named beneficiary. If the account is a joint ownership account with a right of survivorship, the amount automatically goes to the surviving spouse.

But if they died without a will and their accounts are not jointly held or payable on death, then the entire funds go into probate as the rest of their estate.

How to Claim Funds From a Deceased’s Bank Account

Knowing the basics explored above makes it easier to claim a deceased’s bank account following their departure. You will need to determine if:

• It was a joint ownership account
• It was a payable-on-death account
• The deceased had a will or trust

Generally, in the first days, banks will keep the deceased’s accounts inaccessible to many people, including immediate family members. Unless you are a designated beneficiary or jointly held the account with the decedent, you will technically not be able to access it. On the other hand, if the account was named as part of the will or trust, then only the executor or trustee will be given access to it.

Let’s look at all the steps to take to access a deceased’s bank account:

Find the Bank Account of the Deceased

Failure to quickly locate the deceased’s bank accounts can cause the money in them to be claimed by the state as “unclaimed assets.” It can be very stressful to reclaim assets already claimed by the state. Use the following process to identify and locate your deceased loved one’s bank account.

Check the will: If there is a will, the deceased might have indicated the types of accounts they held and the respective banks. You may be forced to look deeper into their safes and drawers for receipts and bank slips if there is no will.

Check their mail: Search the deceased’s letters and emails for anything that resembles a billing statement. You can also look around the home for ATM receipts and tax returns.

Call the Local Banks: You can call local banks to find out whether the deceased had any accounts. You may need to present these banks with verifiable documentation to prove you have a legal right to ask about and access the account.

Speak to their employer: If your deceased loved one was an employee of a company, please talk to their employer. They may have the decedent’s bank records stored with their HR department. Be sure to carry enough documentation as proof of your legal authority to access the accounts of the deceased.

If you have tried the above unsuccessfully, please talk to an attorney. The best lawyers have experience in this kind of matter and can help you quickly locate your deceased loved one’s bank accounts.

How to Retrieve Money for a Decedent’s Bank Account

Banks will need to see your documents. Many financial institutions have laws that guarantee that only the rightful people, including beneficiaries, get access to a deceased’s bank account. Presenting the proper documents will make your life easier.

If you are a beneficiary, you may need to present your ID, birth certificate, or anything that shows you are the person named on the account. If you are an executor, you may need an ID and court-approved documents showing that you are in charge of the estate.

Other essential documents required for accessing a deceased person’s bank account include:

• The deceased’s death certificate
• The deceased’s social security number
• A copy of the Letters Testamentary

Once you present the proper documents, you will be granted access to the account. The deceased’s funds will be fully available to you, and it’s unlikely that any other parties will dispute this entitlement.

But you can take legal action if you strongly believe that someone – either a beneficiary or executor—has gained illegal access to a deceased account. An estate planning attorney can help you gather evidence and file a lawsuit to stop them from accessing or using the funds in the account. Reasons for contesting access to bank accounts include fraud, lack of capacity, duress, or forgery.

How to Close a Deceased’s Bank Account

To close an account belonging to someone who has died, you must show that you have legal authority. As we have seen before, only a few people have the legal right to manage a deceased’s bank account. These include named beneficiaries and joint owners. Other people with a similar right include executors and trustees who have been granted permission to access and manage the account.

Closing an estate checking account requires various documentation, including:

• Your valid ID
• The deceased’s death certificate
• The deceased’s social security number and account number

Besides these documents, you must also show proof that you can legally act on behalf of the deceased’s estate. You may need documentation that shows your relationship to the deceased. In most cases, the proof entails simply visiting the bank with your ID and the deceased’s death certificate.

If you are the deceased’s Power of Attorney, the banks will need to see that you were named executor or administrator after the deceased’s death. If you are a trustee, you may need to present a copy of the trust documents when closing an estate checking account.

If you are the successor trustee, you must notify the bank that the first trustee has died. You may need to bring a copy of the certificate of trust to have the bank validate your access to the deceased’s bank account.

Work with the Experts

Beyond cash, a deceased’s bank accounts may have associated non-cash assets, including bills, bonds, and insurance. You can work with a lawyer and an accountant to better understand the contents of the account, including its assets, liabilities, and overall cash flow.

You will then need to gather copies of the death certificate and any existing estate planning documents, including the will and trust. A probate lawyer can check these documents and advise the best way to handle the assets and those linked to the account.

It’s also essential to immediately notify the three credit bureaus, Equifax, Experian, or TransUnion, about the death of your loved one. All accounts in their name must be closed, and they should supply you with the credit report of your departed loved one so you can check if they have any debts. Contact us today if you need to speak to an experienced probate lawyer. We will handle your case with a personalized approach.