A deceased person cannot open a new account, but their existing accounts remain open until the bank is notified of death
A bank account does not automatically close when someone dies. The account sits in the deceased person's name until the bank receives official notice—typically a death certificate—and the account is either closed, transferred to an estate, or claimed by a beneficiary. Until that notification reaches the bank, transactions can sometimes still process on the account, which creates complications for families and creditors.
The account itself is a legal contract between the bank and the account holder. That contract does not end at death; it ends when the bank terminates it. The bank has no way of knowing someone has died unless a family member, executor, or creditor tells them. Some banks discover the death only when a check bounces, a payment fails, or a family member calls asking what to do.
What happens next depends on three things: whether the account has a named beneficiary, whether there is a will or estate process underway, and what state the account is held in. These determine who has the right to access the money and how quickly.
Key Takeaways
- A bank account remains open and in the deceased person's name until the bank receives a death certificate and closes it.
- If the account has a named beneficiary (payable-on-death or transfer-on-death), that person can claim the money directly without going through probate.
- Without a named beneficiary, the account becomes part of the estate and must go through probate court or be handled under state intestacy law.
- Joint accounts with survivorship rights pass directly to the surviving account holder and do not enter probate.
- Notifying the bank of death requires a certified copy of the death certificate and proof of your relationship to the deceased.
How banks learn about death and what they do with the account
A bank learns someone has died when a family member, executor, or attorney calls or visits with a death certificate. Some banks have a dedicated phone line for this notification; others direct you to the branch where the account was opened. You will need to provide a certified copy of the death certificate—not a photocopy—and proof of your relationship to the deceased (marriage certificate, birth certificate, or court documents naming you as executor).
Once the bank confirms the death, it typically freezes the account. This means no new transactions can be initiated from that account, though pending transactions (checks already written, automatic payments already scheduled) may still clear. The freeze protects the account from fraud and gives the bank time to determine who has the legal right to the money.
The bank will ask you what you want to do: close the account, transfer it to an estate account, or release the funds to a named beneficiary. Your answer depends on whether the account had a beneficiary designation and whether there is a will or probate process.
Accounts with named beneficiaries pass directly to that person
If the account was set up as a payable-on-death (POD) or transfer-on-death (TOD) account, the money goes directly to the person named on that designation. This is the fastest route and does not require probate court. The beneficiary presents the death certificate and proof of identity to the bank, and the bank transfers the funds or opens a new account in the beneficiary's name.
The timeline for this varies by bank but is usually one to three weeks. Some banks process it in days; others take longer if they need to verify documents or if the account is held at a large institution with multiple departments involved. The beneficiary should contact the bank when ready after the death to start the process.
POD and TOD designations override a will. If the deceased person named one child as beneficiary but left the account to a different child in their will, the named beneficiary gets the money. This is why checking for these designations is one of the first steps an executor should take.
Joint accounts with survivorship rights transfer automatically
A joint account with survivorship (also called "joint tenants with rights of survivorship" or JTWROS) passes directly to the surviving account holder. The surviving person already has legal ownership of half the account, so when the other person dies, their half transfers automatically. No probate is needed, and the surviving account holder can continue using the account.
The surviving account holder should still notify the bank of the death and provide a death certificate. The bank will remove the deceased person's name from the account and may issue new cards or checks. Until the bank is notified, the account remains in both names, which can create confusion for creditors or other family members trying to settle the estate.
A joint account without survivorship rights (called "tenants in common") does not automatically transfer. Instead, the deceased person's share becomes part of their estate and must go through probate or be distributed under state law. This is less common for bank accounts but does occur, so it is worth asking the bank which type of account it is.
Accounts without beneficiaries enter probate or follow state intestacy law
If the account has no named beneficiary and is not a joint account, the money becomes part of the deceased person's estate. What happens next depends on whether there is a will and whether the estate is large enough to require probate court.
If there is a will, the person named as executor (or administrator) has the authority to access the account and use the money to pay debts, taxes, and expenses before distributing what remains to the people named in the will. This process takes time—typically several months to over a year—because the executor must notify creditors, file tax returns, and get court approval for distributions.
If there is no will, state law determines who inherits. Most states give priority to spouses, then children, then parents, then siblings. The bank will not release the money until someone with legal authority—usually an executor appointed by the court—presents documents proving they have the right to claim it. In some states, if the account is small enough, a family member can use a simplified process (called a small estate affidavit or succession affidavit) to claim the money without full probate.
What happens if the account has a negative balance or outstanding debts
If the deceased person owed money on the account—overdraft fees, unpaid loans, or credit card debt—the bank may deduct those amounts before releasing any funds to beneficiaries or the estate. The bank has the right to offset what is owed against what is in the account.
If the account is overdrawn, the bank may close it and send a bill to the estate or the person responsible for paying the deceased person's debts. In most cases, creditors cannot pursue family members for the deceased person's debts unless they co-signed the account or are responsible under state law (which varies). The estate pays debts first, and beneficiaries receive only what remains.
If you are the executor or a family member dealing with a negative account, contact the bank in writing and ask for an itemized statement of what is owed. Some banks will negotiate or waive fees if the account holder has been deceased for a long time and the family was unaware of the debt.
Steps to take when notifying a bank of death
Start by gathering documents: the original or certified copy of the death certificate (not a photocopy), your proof of identity, and proof of your relationship to the deceased (will, executor appointment letter, marriage certificate, or birth certificate). Call the bank's main number and ask for the department that handles deceased account holders—do not assume the branch where the account was opened handles this.
Provide the account number, the deceased person's full name, and the date of death. The bank will ask whether you are the executor, a beneficiary, a family member, or a creditor, because that determines what information they can share with you and what authority you have. Be prepared to explain what you need: to close the account, transfer funds to an estate, or claim funds as a named beneficiary.
Ask the bank for written confirmation of the account status, any beneficiary designations on file, and the current balance. Request this in writing if possible, so you have documentation for the estate or for other creditors. Keep copies of all correspondence with the bank, including dates, names of staff members you spoke with, and what was discussed.
Frequently Asked Questions
Can I access a deceased person's bank account if I have their debit card or online login?
No. Using someone else's login credentials or card after they die is fraud, even if you are a family member. The bank will detect unusual activity and freeze the account. The legal way to access the account is to notify the bank of the death and provide proof of your authority—either as a named beneficiary, executor, or surviving joint account holder.
What if the deceased person had accounts at multiple banks?
You will need to notify each bank separately. Check the deceased person's mail, online accounts (if you have access), and tax returns to find all accounts. Ask the executor's attorney or a financial advisor to help you search; some banks do not advertise unclaimed accounts, and it can take months to locate them all. Your state's unclaimed property office also maintains a searchable database of abandoned accounts.
How long does a bank keep a deceased person's account open?
Banks vary, but most will keep an account open for 30 to 90 days after being notified of death, giving the family time to provide documents and claim the funds. After that, the bank may close the account and send any remaining balance to the state's unclaimed property program. Contact the bank when ready after death to avoid this.
Do I need probate court to access a joint account after someone dies?
No, if the account is set up as joint with survivorship rights. The surviving account holder can notify the bank and continue using the account. If the account is joint without survivorship (tenants in common), the deceased person's share must go through probate or be distributed under state law.
What if there is a will that says the account goes to one person, but there is a POD beneficiary named as someone else?
The POD beneficiary gets the money. Beneficiary designations override wills. If this creates a dispute, the person named in the will can challenge the beneficiary designation in court, but the bank will release the funds to the named beneficiary unless a court orders otherwise.