What Happens to a Bank Account When an Owner Dies? | Banking Advice
Key Takeaways
- Joint owners or beneficiaries of the deceased person’s account can work with the bank directly to access the funds.
- If the account becomes part of the owner’s estate, the legally designated executor can collect the funds and place them into an estate account.
- The joint owner, beneficiary or executor must provide a copy of the death certificate when taking action on the owner’s account.
Navigating the financial affairs of a loved one who has recently died can be tricky and complicated. The process includes unraveling the fate of any bank accounts the person held, which depends on whether the accounts have joint owners, beneficiaries or neither.
Understand the process for managing a deceased loved one’s bank account and the necessary steps to properly claim funds after their death.
What Happens to a Bank Account When an Owner Dies?
When a bank account owner dies, the process is fairly straightforward if the account has a joint owner or beneficiary. Otherwise, the account typically becomes part of the owner’s estate or is eventually turned over to the state government and the disbursement of funds is handled in probate court.
With a joint bank account, the joint account holder typically retains ownership of the account under the right of survivorship.
“The surviving owner will be able to withdraw funds from the account,” says David Doehring, probate attorney and managing partner of Doehring & Doehring Attorneys at Law.
If the account has a payable on death beneficiary, the bank account balance goes to the beneficiary after the last account owner dies. A beneficiary can claim bank account funds by contacting the bank and providing a death certificate.
“The beneficiary process is outside of probate regardless of whether the owner had a will or not,” says money coach and certified financial planner Ohan Kayikchyan. “A beneficiary becomes a contract between you and the bank designating who you want to receive the money.”
When there’s no joint bank account holder or beneficiary, the account becomes part of the deceased owner’s estate. The court settles this during probate, overseeing the distribution of assets according to the deceased’s will or special laws in the absence of a will. The bank account will be frozen until the probate process is complete.
If the bank isn’t informed of the owner’s passing and the account goes dormant, the account may be subject to escheatment, which turns the funds over to the state government. Escheatment generally occurs after a few years of abandonment.
“Beneficiary designations should be reviewed and updated regularly to ensure assets are distributed according to your wishes, especially after significant life events,” says Doehring. “It’s crucial to keep these designations current to avoid unintended consequences, such as assets going to someone you no longer want to inherit them.”
Joint Bank Account Rules on Death
Joint bank account holders commonly have the right of survivorship, which grants the surviving account holder ownership of the entire account balance. The surviving account holder retains ownership regardless of which owner contributed the money, and the account doesn’t go through the probate process.
“The joint owner becomes the legal and equitable owner of all funds in a joint account at the instant of death,” says Doehring. “It does not become part of the probate estate.”
Creditors may attempt to claim funds in a joint account to satisfy debts, but the funds are typically not considered part of the deceased’s estate and should not be used to satisfy outstanding debts of the estate.
When a joint account holder passes away, the surviving account holder must provide the bank with a death certificate or other documentation to confirm the death and update account records. Banks usually have a process you must follow for providing documentation upon an account owner’s death. The joint account holder may have the opportunity to remove the deceased from the account or open a new individual account.
Withdrawing Money From a Bank Account After Death
Even in death, only an account owner can legally access bank account funds. If you want to withdraw money and close a bank account, you must have permission to do so.
“If you are not a beneficiary designated person or a payable-on-death person, it is not permitted after death for anyone to attempt to withdraw funds,” says Doehring.
As a joint bank account owner, you can continue using the bank account and have control of all funds within the account. Account beneficiaries can receive the funds in the account from the bank.
A court must grant you the power to withdraw money from the account if you’re neither a joint owner or an account beneficiary. For example, an executor must produce proof of executor status and a certified copy of the death certificate to collect funds and place them in an estate account.
“If you’re not an executor, administrator or designated beneficiary, it’s not surprising that a bank will not talk to you,” says Doehring.
How to Claim Deceased Bank Accounts
A deceased person’s bank account is inaccessible unless you’re a joint owner, a beneficiary of the account or the estate executor.
Joint ownership and beneficiaries can make a difference in how your bank account funds are distributed, so planning is key. “The gift of giving and making a will should be the cornerstone of any estate planning,” says Doehring.
Reviewed on Aug. 27, 2026: The story was previously published at an earlier date.
