After grieving the death of a loved one, you’ll need to consider their estate. The estate consists of the money and properties owned by an individual, especially one that is dead. The demise of a loved one will always raise questions regarding who will inherit the individual’s assets, including his houses, cars, investments, and funds in the bank account. And contrary to what you may believe, claiming a deceased bank account isn’t easy-peasy.
Only a designated beneficiary can claim the money in a deceased bank account. They’ll have to visit the bank and tender an ID and a certified copy of the death certificate (if the bank doesn’t have one on file).
When an individual dies, all that he owns will be left behind. His cars, houses, investments, bank accounts and other properties will need new owners. If the deceased failed to write a will before his demise, all that he owns would be shared based on the intestate laws of the state he died in. On the flip side, if the deceased left a will, his assets will be transferred based on the content of the Will after undergoing probate. What if the deceased opened a POA? In that case, the beneficiaries are free to claim the deceased bank account, but they’ll have to follow due process to do so. In this article, I’ll explain how it is done.
What Happens to a Bank Account When Someone Dies Without a Will?
How to Claim Deceased Bank Accounts?
The owners of several bank accounts, particularly savings and fixed deposit accounts, designate payable-on-death beneficiaries for the account. That means that when the account owner (or the last surviving owner, in the case of a joint account) passes, the POD beneficiary can claim the money from the bank. Thus, the decedent will doesn’t come into play. In addition, there is zero need for any probate court involvement, either.
But, you must note that claiming a deceased bank account isn’t as easy as it seems. You cannot simply walk into the bank with the details of the deceased and request access to his account; things aren’t done that way. Instead, you’ll need to follow due process to claim a deceased bank account. And you shouldn’t for any reason think that the process will be a walk in the park because the owner is deceased.
In this article, I’ll explain how to claim a deceased bank account. But, before we go into that, let’s see the role of the Executor in the administration of a deceased estate.
The Executor’s Role:
When money is left to a POD beneficiary, it doesn’t pass under the terms of the decedent’s Will. That means the funds are not considered the deceased individual’s probate estate, and it is not under the control of the Executor.
Thus, if you are the Executor (or administrator designated by the court), it is not really your duty to help transfer funds to the payable-on-death beneficiary who inherits them.
Still, if the beneficiary is unsure how to proceed, you are likely to be asked for help. And you may be in the best position to provide it. If there are other accounts at the same bank, for instance, you may know someone who can offer you helpful advice. So the process shouldn’t be hard.
You may also be the one to alert POD beneficiaries that they are entitled to some money. Otherwise, unless the decedent told them, the beneficiaries may not be aware. You will be able to see that there is a POD beneficiary when you observe the deceased individual’s bank statements; just look for the term “POD” in the account name.
For instance, a statement might come addressed to “Jack Miller, POD Account.” However, the POD beneficiary’s name may not be indicated; you can find out who it is by reaching out to the bank in your capacity as the Executor or administrator of the estate.
Things to Note:
When a testator (maker of a Will) dies, his entire estate is automatically vested in the State’s Chief Judge. Until the Probate Court grants probate, the executors (persons appointed by the testator to carry out his instructions as contained in the Will) cannot interfere with the testator’s estate. Otherwise, they may face civil and criminal liabilities.
Probate is the process of obtaining a legal document called Grant of Probate to administer the estate of a person who died, leaving a Last Will lodged at the Probate Registry. Where the deceased appointed you as his Executor in his Last Will, you should seek to obtain a Grant of Probate.
What Happens if the Sole Owner of an Account Dies?
When an individual dies, their bank accounts are shut. Any cash left in the account is granted to the beneficiary they named on the account. If no beneficiary is designated, the Executor of the estate is in charge of sharing is based on the Will, the legally binding document that states who gets the decedent’s assets after they pass.
Any debt, be it credit card or personal loan debt, is paid from the deceased’s bank accounts before the account administrator takes charge of any assets.
To claim a deceased bank account, especially a POD, you must be a designated beneficiary. Only a designated beneficiary can claim a POD account.
To do so, you’ll need to visit the deceased bank, identify yourself and present a certified copy of the death certificate. The bank will have the paperwork signed by the deceased owner, which allows the beneficiary to inherit the money. Then, as a beneficiary, you can either decide to withdraw the money or open a new account.
Can a Bank Freeze a Joint Account?
Can You Withdraw Money From a Dead Person’s Account?
The death of a loved one is something no one wants to experience. However, the sadness that comes with such unfortunate circumstances often lingers in the family for a while as everyone tries to come to grips with the loss. Furthermore, the complications that come with managing the deceased’s assets is also an issue that loved ones sometimes find hard to settle. For instance, if a loved one dies, can you withdraw money from their account?
If a loved one dies, it is possible to withdraw money from his account. But to do so, you need to ensure that you are a beneficiary of the POD account. If you aren’t, it will be impossible to do so.
Ensure you speak with a lawyer to understand what you need to do to access the account of a deceased without breaking any rules.
