Bank accounts don't disappear when someone dies — but what happens depends on how the account was set up.
When someone dies, their bank accounts are handled differently depending on how the accounts were structured. Some accounts transfer immediately to a designated person. Others become part of the probate estate and may be frozen until the executor is appointed.
If the account is jointly owned with a right of survivorship, the surviving owner automatically becomes the sole owner. They can access the funds immediately. No probate is needed for this account. The surviving owner simply presents a death certificate to the bank.
If the account has a payable-on-death beneficiary designated, the funds transfer directly to that person outside of probate. The beneficiary presents a death certificate and identification to the bank. This is one of the simplest ways to pass bank accounts to heirs.
Accounts owned solely by the deceased with no beneficiary designation become part of the probate estate. The bank will freeze the account when notified of the death. The executor must present letters testamentary and a death certificate to gain access. Funds are then managed as part of the estate and distributed according to the will or state law.
Banks are notified of a death through various channels — Social Security Administration death records, family notification, or when someone presents a death certificate. Once notified, the bank freezes individual accounts, stops automatic payments and deposits, and waits for proper legal documentation before releasing funds.
When bank accounts are tied up in probate, it can create real hardship for heirs who need funds now. An inheritance advance provides cash while the estate works through the process.
Disclaimer: This page is for general informational purposes only and does not constitute legal, financial, or tax advice. Probate laws, timelines, and costs vary significantly by state and by individual circumstances. We strongly encourage you to consult with a qualified attorney or financial advisor for guidance specific to your situation. First Heritage Funding is not a law firm and does not provide legal services.
Yes — that's one of the executor's primary responsibilities. They use estate funds to pay the deceased's debts, funeral expenses, and administration costs. The executor should open a dedicated estate bank account for this purpose.
Automatic payments continue until the bank freezes the account. The executor should notify billers and cancel automatic payments as soon as possible to prevent the estate from being charged for services no longer needed.
Creditors must follow the probate process to file claims against the estate. They cannot independently seize funds from a deceased person's bank account. The executor evaluates and pays valid claims from estate funds.
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