What Happens To a Bank Account When Someone Dies Without a Beneficiary?

Losing someone you love is hard enough. Sorting through their finances afterward can feel overwhelming. If your loved one had a bank account without a named beneficiary, the money doesn’t pass straight to family. It usually goes through a legal process called probate, where a court decides who gets what. Here’s what happens to the account, who can access it and how to handle things if you’re the one left in charge.

Key Takeaways

• Without a beneficiary, a bank account goes through probate, a court process that can take months to more than a year, depending on the size of the estate and your state’s laws.

• The money becomes part of the deceased person’s estate and gets distributed based on their will or, if there’s no will, according to your state’s intestacy laws.

• If no heirs come forward or the account sits untouched for years, the money can be turned over to the state through a process called escheatment.

Summary generated by AI, verified by MoneyLion editors

The Account Goes Through Probate

Probate is the court process that settles a person’s estate after they die. When a bank account doesn’t have a named beneficiary and isn’t jointly owned, the money becomes part of the estate. Family members can’t withdraw funds until the court signs off.

The process starts when someone, often a close family member, files a petition with the local probate court. The court then appoints an executor if there’s a will or an administrator if there isn’t. That person pays off debts, handles taxes and distributes what’s left to heirs.

Probate can take a few months for simple estates or over a year for larger ones. Your state’s laws and whether family members agree on the split can also affect the timeline.

How the Type of Account Affects What Happens

Not every bank account has to go through probate. What happens depends on how the account was set up:

• Joint accounts: If the account was shared with someone else, the surviving owner usually gets full access. This is called right of survivorship.

• Payable-on-death (POD) accounts: These name a specific person to receive the funds, skipping probate. But if no one is listed, the money goes to the estate.

• Sole accounts with no beneficiary: These go through probate before anyone can touch the funds.

If you’re not sure how the account was set up, the bank can tell you once you show a death certificate and proof of your relationship.

The Role of the Estate Executor

The executor is the person named in the will to manage the estate. If there’s no will, the court appoints an administrator. Either way, this person has the legal authority to deal with the bank on behalf of the estate.

The executor’s job includes:

• Notifying the bank: They provide the death certificate and other paperwork to freeze the account.

• Paying debts: Outstanding bills, credit cards and taxes get paid from the account funds first.

• Distributing what’s left: After debts are settled, remaining funds go to heirs based on the will or state law.

Until the executor is appointed by the court, no one can pull money from the account.

What Happens If No One Claims the Account

If years go by and no one claims the account, the bank marks it as dormant. After a set period, often three to five years, depending on the state, the money is turned over to the state through escheatment. The state then holds it as unclaimed property.

Heirs can still claim these funds later, but they have to go through the state’s unclaimed property office.

Steps To Take If You’re Handling a Loved One’s Account

If you’re managing the account, here’s where to start:

• Get certified death certificates: You’ll need multiple copies for the bank, the court and other agencies.

• Contact the bank: Notify them of the death so they can freeze the account and explain the next steps.

• Find the will: Check safe deposit boxes, home files or with the deceased’s attorney.

• File with probate court: If probate is required, start the process in the county where the deceased lived.

• Track everything: Keep records of all communications, payments and distributions.

The Bottom Line

A bank account without a beneficiary usually ends up in probate, which slows things down for the people left behind.

FAQs

Can I access my parent’s bank account after they die?

Not right away. Unless you’re a joint owner or named beneficiary, you’ll need to wait for probate before touching the funds.

How long does probate take for a bank account?

It varies. Simple estates can wrap up in a few months. Complex ones may take over a year.

Does the bank freeze the account when someone dies?

Yes. Once the bank is notified of the death, the account is frozen until an executor or administrator is appointed.

Can bills and debts be paid from the account before it’s distributed?

Yes. The executor uses the funds to pay valid debts and taxes before giving what’s left to heirs.

Key Terms

Probate: The court process of settling a deceased person’s estate, including distributing bank accounts without named beneficiaries.

Executor: The person named in a will to manage the estate, pay debts and distribute assets to heirs.

Intestacy: State law that decides who inherits when someone dies without a valid will.

Escheatment: The process where unclaimed bank funds are transferred to the state after a period of inactivity.

Payable-on-death (POD) account: A bank account with a named beneficiary who receives the funds directly, skipping probate.

Sources

• Consumer Financial Protection Bureau: What happens if a person dies and leaves outstanding debts?

• Federal Deposit Insurance Corp. (FDIC): Deposit insurance resources

• National Association of Unclaimed Property Administrators

• American Bar Association: Estate Planning Information & FAQs

• CFPB: What happens if I have a joint bank account with someone who died?