The account freezes, but not immediately
When a bank account holder dies, the bank does not automatically close the account or freeze it the moment death occurs. The account sits open until the bank learns of the death—usually when a family member, executor, or attorney notifies them. Once the bank receives a death certificate, it will freeze the account, meaning no one can withdraw money, write checks, or make transfers from it.
The freeze prevents the account from being drained while the estate is being settled. It also protects the bank from liability if multiple people claim rights to the money. How long the freeze lasts depends on whether there is a will, whether the account has a named beneficiary, and how quickly the estate moves through probate.
If you are notifying a bank of a death, call the account holder's branch directly and ask to speak with someone in the estate or probate department. Have the death certificate ready—most banks will ask you to mail or deliver a certified copy before they take any action.
Key Takeaways
- A bank account freezes only after the bank receives official notice of death, usually a certified death certificate, so the account may remain accessible for days or weeks if no one tells the bank.
- Money in the account goes to a named beneficiary if one exists on the account; if not, it becomes part of the estate and is distributed according to the will or state law.
- An executor or administrator of the estate can access a frozen account to pay debts and taxes, but only after presenting the death certificate and court documents to the bank.
- Joint account holders with survivorship rights keep their share of the money and can continue using the account; joint owners without survivorship rights must go through probate.
- The bank may charge monthly fees on a frozen account, so the executor should close it once debts are paid and funds are distributed.
Named beneficiaries bypass probate
If the account has a named beneficiary—a person or entity listed on the account specifically to receive the money upon death—that person can claim the funds without waiting for probate. This is the fastest path to accessing the money. The beneficiary will need to present the death certificate and a form from the bank (usually called a "claim form" or "beneficiary claim") to receive the balance.
Named beneficiaries are common on savings accounts, money market accounts, and certificates of deposit (CDs). The account holder sets this up when opening the account or later by contacting the bank. If you are a named beneficiary, contact the bank directly with the death certificate; you do not need to wait for an executor or go through the court system.
The timeline for a beneficiary to receive funds varies by bank but typically takes one to three weeks after the bank receives the death certificate and completed claim form. Some banks process faster; others may take longer if the account is large or if there are complications.
Without a beneficiary, the account enters probate
If there is no named beneficiary on the account, the money becomes part of the deceased person's estate and must be distributed according to the will or, if there is no will, according to state law. This process is called probate, and it can take months or even years depending on the state, the size of the estate, and whether anyone contests the will.
During probate, the court appoints an executor (if named in the will) or an administrator (if there is no will) to manage the estate. That person must file the death certificate with the court, notify creditors and heirs, pay debts and taxes, and then distribute what remains to the people who are may have access to to it under the will or state law. The bank will not release funds until the executor or administrator presents court documents proving they have authority to access the account.
The executor can use money from the account to pay funeral expenses, medical bills, taxes, and other debts of the estate. Only after all debts are settled does the remaining balance go to the heirs or beneficiaries named in the will.
Joint accounts with survivorship rights
If the account is held jointly with survivorship rights (sometimes called "joint tenants with rights of survivorship" or JTWROS), the surviving joint owner automatically owns the entire account balance when the other owner dies. The money does not go into probate, and the surviving owner can continue using the account immediately—or close it and move the money elsewhere.
Survivorship rights must be set up when the account is opened or added later by both account holders visiting the bank together. Not all joint accounts have survivorship rights; some are set up as "tenants in common," which means each owner's share goes into their estate when they die. Check your account documents or call the bank to confirm which type you have.
The surviving joint owner should notify the bank of the death and provide a death certificate. The bank may require this to update the account title and remove the deceased owner's name, but the surviving owner can usually access and use the account without waiting for probate.
Joint accounts without survivorship rights
If a joint account does not have survivorship rights, each owner's share of the account is considered part of their estate when they die. This means the deceased owner's share must go through probate, even though the surviving owner's share remains theirs.
The surviving owner can continue using the account and accessing their own funds, but the bank will freeze the deceased owner's portion once notified of the death. The executor of the deceased owner's estate must then go through probate to claim that share. This creates a messy situation where one account is split between probate and non-probate funds.
To avoid this, account holders should clarify with their bank whether their joint account includes survivorship rights. If it does not and you want the surviving owner to inherit the full balance, you can change the account to include survivorship rights—both owners must visit the bank together to make this change.
Debts and taxes come out of the account
The executor or administrator of an estate has a legal duty to use the account to pay the deceased person's debts before distributing money to heirs. This includes credit card balances, medical bills, mortgages, and any other outstanding obligations. The executor must also pay state and federal income taxes owed by the deceased and, in some cases, estate taxes.
Creditors have a limited time to file claims against the estate—usually three to six months depending on the state. The executor must notify known creditors of the death and give them time to submit claims. If a creditor does not file a claim within the deadline, they generally cannot collect from the estate.
Once all debts and taxes are paid, the remaining balance in the account goes to the heirs or beneficiaries. If the account does not have enough money to cover all debts, the executor may need to sell other assets of the estate or ask heirs to contribute. Heirs cannot receive their inheritance until debts are settled.
The executor's role in accessing and closing the account
The executor named in the will (or the administrator appointed by the court if there is no will) is the person authorized to access a frozen account. To do this, the executor must present the bank with a certified death certificate and a court document proving their authority—usually a "letter testamentary" or "letters of administration" issued by the probate court.
The executor can then withdraw money to pay funeral expenses, debts, taxes, and other costs of settling the estate. The bank may require the executor to open a separate estate account to hold the funds while they are being managed. Once all debts are paid and heirs have been identified, the executor distributes the remaining balance and closes the account.
If you are an executor, contact the bank early and ask what documents they need. Different banks have different requirements, and some move faster than others. Keep detailed records of all withdrawals and distributions, as you may need to report them to the court or to the heirs.
What to do if you discover an unclaimed account
If you believe a deceased person had a bank account but cannot locate it, start by searching the National Association of Unclaimed Property Administrators (NAUPA) database at unclaimed.org. This database aggregates unclaimed property from all states, including dormant bank accounts. You can search by the deceased person's name and the state where they lived.
If you find an account listed, follow the instructions on the state's unclaimed property website to file a claim. You will need to provide proof of death (the death certificate) and proof of your relationship to the deceased (such as a will naming you as executor, or a court order appointing you as administrator). The state will then work with the bank to release the funds.
If the account is not in the unclaimed property database, contact banks where the deceased person may have done business. Ask to speak with the estate or probate department and provide the death certificate. Some banks will search their records for accounts under the deceased person's name and Social Security number.
Frequently Asked Questions
Can I access a deceased person's bank account if I have power of attorney?
No. Power of attorney ends when the account holder dies. You will need to be named as executor in the will, appointed as administrator by the court, or be a named beneficiary or joint owner with survivorship rights. If you have none of these, you cannot access the account.
What if the account holder died without a will?
The account becomes part of the estate and is distributed according to your state's intestacy laws, which typically prioritize spouses, then children, then parents, then siblings. The court will appoint an administrator to manage the estate. You can contact the probate court in the county where the deceased lived to start this process.
Do I have to pay taxes on money I inherit from a bank account?
Beneficiaries generally do not owe federal income tax on inherited money. However, the estate itself may owe income tax on interest earned in the account after the person's death, and large estates may owe federal estate tax. The executor handles these taxes; heirs receive their share after taxes are paid.
How long does it take to access money in a frozen account?
If there is a named beneficiary, typically one to three weeks. If the account must go through probate, it can take several months to over a year, depending on the state and complexity of the estate. Probate in some states is faster than others; ask the probate court for an estimate.
Can the bank charge fees on a frozen account?
Yes. Some banks continue charging monthly maintenance fees, overdraft fees, or other charges on frozen accounts. The executor should ask the bank about fees and request that they be waived during probate, or close the account once it is no longer needed to stop the charges.