How to Claim a Deceased Person’s Bank Accounts: A Comprehensive Guide

There are numerous unfinished business matters that must be resolved after someone passes away. Closing the deceased person’s bank accounts is one of those unfinished business (e g. , checking accounts, savings accounts, retirement accounts). The complexity of this procedure will vary depending on several elements, such as the type of account (e g. Among other things, find out if you have been given the legal authority to handle the account and if it is a joint or pay-on-death bank account.

Even though accessing a deceased person’s bank account can be simple (particularly if the deceased person had named a pay-upon-death beneficiary or if there is a joint account owner), we advise collaborating closely with a probate attorney as soon as possible after a loved one passes away to make sure your beneficiary rights are upheld during the administration process and to quickly settle any potential probate disputes.

We go over the fundamentals of what happens to a person’s bank account upon death in the following section.

Read our article, “What Happens to Property When Someone Dies?” to find out more about the transfer of non-cash assets after death.

Losing a loved one is never easy, and dealing with their financial affairs can add to the emotional burden. This guide will help you navigate the process of claiming a deceased person’s bank accounts, whether you’re a designated beneficiary, joint owner, or executor/administrator of the estate.

Understanding Bank Account Beneficiaries

Many bank accounts have designated beneficiaries who automatically inherit the funds upon the account holder’s death. If you’re unsure whether the deceased had a beneficiary, you can check with the bank or review their will or trust documents.

Joint Bank Accounts

If you were a joint owner of the deceased’s bank account, you can access the funds immediately. However, you may need to provide the bank with a death certificate and proof of your identity.

No Beneficiary or Joint Owner

If the deceased did not have a beneficiary or joint owner, the account will become part of their estate. The executor or administrator of the estate will be responsible for accessing the funds and distributing them according to the will or the laws of intestacy.

How to Claim the Funds

To claim the funds from a deceased person’s bank account, you will typically need to provide the following documents:

  • Government-issued ID: such as a driver’s license or passport.
  • Death certificate of the account holder: This is required for all claims, regardless of whether you are a beneficiary, joint owner, or executor/administrator.
  • A copy of the Letters of Administration or Letters Testamentary: These documents are issued by the court and confirm the executor/administrator’s authority to manage the estate.
  • A certified copy of the trust instrument: If the trust is named as the beneficiary of the account, you will need to provide a certified copy of the trust document.

Contesting a Beneficiary

In some cases, you may have grounds to contest the designated beneficiary on a bank account. This could be due to reasons such as undue influence, lack of capacity, or fraud. If you believe you have a valid claim, it is important to consult with an experienced probate attorney.

Frequently Asked Questions

How long does it take to claim money from a deceased person’s bank account?

The time it takes to claim money from a deceased person’s bank account can vary depending on several factors, such as whether there is a will, the complexity of the estate, and the bank’s processing time. In general, it can take anywhere from a few weeks to several months.

What happens if the deceased person’s bank account is empty?

If the deceased person’s bank account is empty, there is no money to claim. However, you may still need to provide the bank with the necessary documentation to close the account.

Do I need to pay taxes on the money I inherit from a deceased person’s bank account?

Inheritances are generally not subject to income tax. However, you may be responsible for paying taxes on any interest earned on the account since the death of the account holder.

What should I do if I am unsure about how to claim a deceased person’s bank account?

If you are unsure about how to claim a deceased person’s bank account, it is best to consult with an experienced probate attorney. They can help you understand the process and ensure that you are following the correct procedures.

Claiming a deceased person’s bank account can be a complex process, but it is important to understand your rights and responsibilities. By following the steps outlined in this guide, you can ensure that you are able to access the funds and distribute them according to the wishes of the deceased.

What Happens When a Trust Is Named as the Beneficiary of a Bank Account?

Trust creators, also known as settlors, grantors, or trustors, frequently designate a trust as the beneficiary of a bank account in order to avoid probate and distribute the asset in line with the terms of their trust.

The main benefit of designating a trust as a beneficiary on a bank account is that it keeps assets consolidated, saving the surviving family members of the deceased from having to locate them.

Additionally, naming a trust as a beneficiary can help the decedent’s loved ones save a lot of money and time because it avoids probate.

It will be the trustee’s responsibility to go and retrieve the contents of the bank account if the deceased named their trust as the beneficiary.

For the asset to be released to them, they will typically need to provide the bank with a certified copy of the decedent’s death certificate, their own government-issued identification, and the trust instrument. However, the specific documentation required may differ depending on the bank, so it is best to contact ahead of time to find out what you need to bring.

How to Contest a Beneficiary Designation on a Bank Account

The first step in contesting a bank account beneficiary is to speak with a beneficiary attorney to figure out the best course of action if you are certain that you have standing and a good reason for doing so.

It’s crucial to remember that challenging a beneficiary is typically not a simple process; it may need assembling proof and engaging in legal proceedings.

The steps of this process are covered in more detail in the sections that follow.

To assist you in contesting a bank account beneficiary, you should hire an attorney unless you have a lot of legal experience and plenty of time.

Having legal assistance can simplify the process of contesting a bank account beneficiary, from assessing your claims and drafting petitions to obtaining the necessary evidence for the litigation. Contesting a beneficiary is not one of the simple legal procedures that the average person can handle.

It depends on whether you can challenge a beneficiary on a bank account after an incorrect beneficiary has already used up all of the funds in the account. With the assistance of an experienced lawyer, you might be able to retrieve the money from the incorrect beneficiary, though it might not be easy to do so.

It is always preferable in cases like this to file a lawsuit as soon as the decedent passes away in order to lessen the possibility that the asset has already been claimed.

A competent probate attorney can demand in writing that the bank freeze the account until the dispute is settled if the asset has already been claimed. An attorney can assist you in filing a petition to establish ownership of the disputed funds after the account is frozen.

When you have a skilled beneficiary lawyer representing you, it’s time to submit a petition outlining your arguments against the bank account beneficiary in question. Following the filing of your petition, the court will schedule an initial hearing so that your attorney can present oral arguments in favor of your claim.

Be aware that some cases might be settled out of court through mediation. A third party who is impartial helps the parties to a dispute come to a resolution during mediation. Parties can save a substantial amount of money and time by using mediation.

You must locate proof if you want to demonstrate fraud, undue influence, or incapacity of the deceased. You can only win a case in court by demonstrating misconduct or incapacity.

Finding the necessary evidence will probably be a laborious process that requires lengthy discovery, which may entail submitting written and subpoenaeous discovery as well as deposing important witnesses. The good news is that you can maximize efficiency in the discovery process by working with an attorney to streamline it.

After filing the petition and conducting the required discovery, an experienced lawyer can use the data and records you’ve gathered as leverage to work out a good settlement. Most settlements occur at a private mediation, as noted above.

In the event that a settlement cannot be reached, an experienced lawyer can assist you in taking your case to trial. At this point, the court will hear testimony from witnesses and introduce documentary evidence, and a judge or jury will determine whether you have provided sufficient evidence to win your case.

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