What Happens to a Bank Account When Someone Passes Away in California?
When a loved one passes away, one is often left with too many questions, and it can be overwhelming. In addition to coming to terms with losing a cherished loved one, you may also be wondering about how to deal with their affairs, including their bank accounts. Who gets access to the funds? How do you access the funds? What happens if there is no will? In California, this depends on how the bank account was set up and if it was part of the decedent’s estate. Below, we help you understand the process of navigating this challenging time more easily.
Sole-Owned Bank Accounts
For bank accounts solely owned by the deceased, the process depends on whether there is a named beneficiary or a valid will. This is what happens:
- Accounts With a Named Beneficiary
If the deceased had designated a beneficiary through a payable-on-death (POD) or transferable-on-death) bank provision, the funds in the account are directly transferred to the named beneficiary. This bypasses probate, making it easier and quicker. To claim the funds, the beneficiary needs to present a valid government-issued ID and a certified death certificate.
- Accounts Without a Named Beneficiary
If no beneficiary is listed, the account becomes part of the deceased’s estate. The executor of the estate will use the funds to settle debts, pay taxes, and distribute any remaining money as directed by the will. In cases where there is no will, California’s intestate succession laws determine how the funds are distributed, often prioritizing close family members.
Joint Bank Accounts
If it was a joint account, the surviving account holder automatically assumes full ownership of the account. Probate is not required in such a case, but it is best to confirm with the bank to ensure everything transitions smoothly.
When Does Probate Come Into Play?
Probate is the legal process whereby the court oversees the distribution of the deceased person’s assets. If an account has no joint owner or beneficiary designation, the designated beneficiary cannot be located, and it isn’t part of a trust, it becomes subject to probate. Additionally, if there is a dispute regarding the named beneficiary’s right to the account, such as allegations that the deceased was coerced into adding them as beneficiaries, the bank account may need to go through probate.
Finding Out if You Are a Beneficiary
If you believe you could be a beneficiary of the decedent’s bank account, you can confirm this by visiting the bank. You must present a certified death certificate and your government ID. The bank then verifies your beneficiary status, and if confirmed, the funds are released to you. If there isn’t a named beneficiary, you may need to work with the estate’s executor to determine your rights.
Can Executors Access Bank Accounts?
Executors can access bank accounts only when:
- The account lacks a joint owner or designated beneficiary
- It’s not part of a trust.
Executives typically need documents such as the death certificate, Letters Testamentary (issued during probate), and their government-issued ID to withdraw funds. All withdrawn funds must be accounted for and used exclusively to settle the estate.
Call the Probate Guy Today
If you are navigating the complexities of handling a loved one’s bank accounts after their passing, contact the dedicated California probate attorney Robert L. Cohen – The Probate Guy – today to schedule a telephonic consultation.
Southern California Probate Lawyer Serving Orange, Riverside, Anaheim, Whittier & Beyond.
Source:
irs.gov/individuals/responsibilities-of-an-estate-administrator
