When someone you love dies, the paperwork seems to arrive before the grief even has a chance to settle. Among the very first administrative tasks many families face is figuring out what to do with the deceased's bank accounts — a process that can feel confusing, cold, and oddly bureaucratic at a time when you have very little bandwidth for any of it. Do you close the account right away? Can you use it to pay for the funeral? What if there's no will?
This guide walks through what you need to know: the different types of accounts and how each one is handled, the documents banks will ask for, a step-by-step process for closing or transferring an account, and some of the more unusual situations families run into — from accounts scattered across multiple banks to unclaimed funds that end up with the state. If you haven't yet notified the bank or other institutions of the death, it's worth reading our companion guide on how to notify Social Security and banks after a death first.
This article is general education, not legal or financial advice. Every bank has its own internal policies, and state laws on estates and probate vary widely, so when in doubt, lean on the bank's estate services team and, for anything complicated, a probate attorney.
Before You Start: Know What Type of Account You're Dealing With
The single biggest factor in how a bank account is handled after death is how the account was titled — not what's written in a will. A will has no power over an account that is jointly owned or has a named beneficiary, because those arrangements are contractual and take effect automatically. Before you call the bank, it helps to know which of the following categories you're dealing with.
Individual accounts with no beneficiary
An account held solely in the deceased's name, with no payable-on-death (POD) or transfer-on-death (TOD) designation, generally becomes part of the probate estate. That means it can only be accessed and closed by the person with legal authority to act on the estate's behalf — typically the executor named in the will, or an administrator appointed by the court if there's no will. This is usually the slowest path, since it often requires the bank to see court-issued documentation before releasing any funds.
Joint accounts with rights of survivorship
Most joint bank accounts are set up as "joint with rights of survivorship" (JTWROS), which is the default arrangement at most banks unless stated otherwise. When one owner dies, the surviving owner automatically becomes the sole owner of the funds — the money does not pass through the estate or probate at all. In practice, the survivor usually just needs to bring a certified death certificate and valid ID to the bank to have the account retitled or the deceased's name removed. It's worth noting that a small number of accounts are titled as "tenants in common" rather than JTWROS, in which case the deceased's share may actually belong to the estate — so it's worth confirming the exact titling with the bank rather than assuming.
POD/TOD accounts
Accounts with a payable-on-death or transfer-on-death designation name a specific beneficiary who inherits the funds directly, bypassing probate entirely. The beneficiary typically just needs to show a certified death certificate and their own ID to claim the funds. If this describes the account you're dealing with, our detailed guide on transfer on death accounts covers the claims process in depth.
Why account type determines everything
These distinctions matter because they determine who has legal authority to act, what documents are required, and how quickly funds become available. A joint account might be resolved in a single bank visit, while an individual account without a beneficiary may take weeks or months if the estate has to go through formal probate. Knowing which category applies before you contact the bank will save you a lot of back-and-forth.
Documents You'll Need
Regardless of account type, banks generally ask for some combination of the following. Gathering these in advance will speed things up considerably.
Certified copies of the death certificate
Banks require an original certified death certificate, not a photocopy, and will typically keep one on file. Because life insurance companies, retirement plan administrators, government agencies, and other banks will also ask for their own certified copy, it's common guidance to order 10 to 12 certified copies up front from the funeral home or local vital records office, so you aren't repeatedly paying for and waiting on new ones — a practice the Consumer Financial Protection Bureau (CFPB) recommends in its guide for surviving spouses (a task typically coordinated by the executor).
Proof of your identity and authority
You'll need your own government-issued ID, plus documentation establishing your legal right to act. What counts as "proof of authority" depends on the situation:
- Letters Testamentary or Letters of Administration — a court-issued document naming you as executor or administrator of the estate, required by most banks before they will release funds from an individual account that must go through probate.
- A small estate affidavit — a simplified, sworn statement usable in many states when the estate falls below a certain dollar threshold, allowing heirs to claim assets without full probate.
- A trust certification — if the account was held in a living trust, the successor trustee typically just needs to show a certificate of trust rather than going through probate at all.
Account numbers and statements
Recent bank statements, checks, or account numbers help the bank locate the account quickly, especially if the deceased didn't leave behind an organized list of accounts.
Social Security number of the deceased
Banks use this to verify identity and to cross-reference against the Social Security Administration's records, particularly relevant if the deceased was receiving direct-deposited benefits.
Step-by-Step: How to Close a Bank Account After a Death
Step 1 — Notify the bank promptly
Contact the bank as soon as reasonably possible, whether in person, by phone, or in writing. Most major banks maintain a dedicated "estate services" or "deceased customer" department that specializes in exactly this process and can walk you through what they need. Prompt notification also protects against fraud and unauthorized use of the account.
Step 2 — The bank freezes the individual account
Once notified, the bank will typically freeze an individual account pending proper documentation. This is standard practice, not a sign of a problem — it prevents further withdrawals, checks, or automatic debits until the estate's representative is verified. Joint accounts with a surviving co-owner usually remain accessible to that co-owner throughout this process.
Step 3 — Submit the death certificate and proof of authority
Provide the certified death certificate along with whichever proof of authority applies — Letters Testamentary, a small estate affidavit, or trust documentation. The bank will likely also ask you to complete its own internal claim or account-closure forms.
Step 4 — Redirect or cancel automatic payments and direct deposits
Before closing an account, identify any recurring charges, subscriptions, or automatic bill payments tied to it, and any direct deposits (paychecks, pensions, Social Security) still routed there. These need to be redirected or canceled so bills don't bounce and deposits don't continue arriving in a frozen or closed account.
Step 5 — Request funds be released
Depending on account type, ask the bank to release funds to the estate's account, to you as executor, or directly to a named POD/TOD beneficiary. For estate accounts, many executors open a separate "estate of [name]" checking account to receive these funds and manage the deceased's remaining bills — a step usually outlined in more detail in guidance on executor duties.
Step 6 — Close the account and get written confirmation
Once funds are disbursed, ask the bank for written confirmation that the account has been closed, and keep this for the estate's records. If the estate is going through probate, the court or the estate's attorney may want copies of this documentation as part of the final accounting.
What Happens to Automatic Payments, Direct Deposits, and Debit Cards
Recurring bills and subscriptions
Streaming services, gym memberships, utility bills, and insurance premiums often draft automatically from a bank account. Make a list of these as early as possible — reviewing a few months of statements is usually the fastest way to catch them all — and either cancel them or redirect billing to a different account or the estate.
Social Security and pension deposits
This is one of the more important — and most often mishandled — parts of the process. Social Security benefits are not payable for the month of death, and any payment received after death generally must be returned to the Social Security Administration. Contacting the SSA promptly, as outlined in our guide to notifying Social Security and banks after a death, helps avoid a benefit being deposited that will later need to be clawed back, sometimes creating an overdraft or complications for the account.
Debit and credit cards
Any debit or credit cards tied to the deceased's individual account should be cut up and no longer used, even by a family member who has access to the account temporarily. Continuing to use them can create legal and accounting complications for the estate, discussed further below.
FDIC Insurance and the Six-Month Grace Period
Federal deposit insurance rules include a specific provision for accounts affected by death, and it's worth understanding if the estate holds significant deposits.
How death affects insurance coverage
Under FDIC rules, the deposits of a deceased account owner continue to be insured as if the person were still alive for six months following the date of death. This grace period gives families time to review and restructure accounts without an unexpected lapse in coverage. For example, a joint account insured up to $500,000 while both owners were alive remains insured at that level for six months after one owner's death, even though ownership has effectively changed hands (FDIC: Death of an Account Owner). Standard FDIC deposit insurance otherwise covers up to $250,000 per depositor, per insured bank, per ownership category (FDIC: Your Insured Deposits).
Why timing matters for larger estates
If an estate holds deposits well above the standard insurance limits, this six-month window is the time to restructure accounts — for instance, by splitting funds across institutions or ownership categories — so nothing falls outside FDIC coverage once the grace period ends. Notably, the FDIC does not apply a grace period when a named beneficiary (rather than the account owner) is the one who dies, which can mean an immediate reduction in coverage in that scenario (FDIC: Death of an Account Owner). For estates near or above these thresholds, it's worth looping in the estate's attorney or accountant to make sure nothing is left uninsured.
Special Situations
No will and no named beneficiary
When someone dies without a will (intestate) and an account has no joint owner or beneficiary, the account becomes part of the probate estate and is distributed according to state intestacy law. If the estate is small, many states offer a simplified alternative to full probate: a small estate affidavit. These let an heir claim assets — including bank accounts — with a sworn statement rather than a lengthy court process, but only if the estate's total value falls under a state-specific dollar threshold. These thresholds vary enormously: some states cap "small estates" around $20,000–$50,000, while others allow affidavits for estates worth several hundred thousand dollars. Because the rules and dollar limits differ so much by state, it's worth checking directly with the probate court in the state where the deceased lived, or asking a local probate attorney, rather than assuming a threshold from another state applies. For a broader sense of how this fits into the estate process overall, see our guide to the probate process timeline.
Accounts at multiple banks
It's common for people to hold accounts at more than one institution. Reviewing old statements, tax documents, or using a service that searches for accounts under the deceased's name can help identify all of them. Each bank will have its own estate services process, so expect to repeat much of the documentation submission at each institution.
Safe deposit boxes
If the deceased had a safe deposit box, banks often restrict access until the estate's representative provides similar documentation to what's needed for account closure — sometimes even requiring a court order or the presence of a bank employee to inventory contents, particularly if the box may contain the original will.
Business accounts vs. personal accounts
Business accounts are typically governed by the business's own formation documents (operating agreement, partnership agreement, or corporate bylaws) rather than by personal estate rules, and often require different documentation, such as proof of successor ownership or authority under those governing documents. If the deceased owned a business, it's worth consulting an attorney early, since business accounts can be more complex to unwind than personal ones.
Unclaimed funds and state escheatment
If no one comes forward to claim an account within a period set by state law (commonly a few years of inactivity), the bank is generally required to turn the funds over to the state's unclaimed property division — a process known as escheatment. The good news is these funds aren't lost forever: heirs or estate representatives can typically search a state's unclaimed property database and file a claim, even years later, to recover them.
Common Mistakes to Avoid
Continuing to use the deceased's debit card or checks
Even with good intentions — like paying for funeral costs — using the deceased's card or checks after death is generally not advisable and can create legal complications, since technically the account should be handled through proper estate channels once the bank is aware of the death.
Not notifying the bank quickly enough
Delays in notification increase the risk of fraud, missed automatic payments bouncing and generating fees, or continued benefit deposits that will need to be returned.
Assuming a joint account means no paperwork is needed
While joint accounts are far simpler than individual accounts, the surviving owner still typically needs to visit the bank with a death certificate to have the account retitled — it doesn't happen automatically without any action.
Not keeping records
Keep copies of every form submitted, note the names of bank representatives you speak with, and request written confirmation of account closures. This paper trail can matter later if there's any discrepancy during probate or an estate accounting.
When to Involve a Professional
If the estate must go through formal probate, if there's no will, if family members disagree about account ownership, or if the estate is large or includes a business, it's worth consulting a probate attorney early rather than trying to navigate it alone. Most major banks also maintain a dedicated estate services or "deceased customer" department — asking to be routed there directly, rather than working through a general customer service line, often produces faster and more knowledgeable help. If the deceased also held a life insurance policy, the claims process is separate from bank account closure; our guide on filing a life insurance claim after a death covers that in detail.
Frequently Asked Questions
How soon after a death should I notify the bank?
As soon as reasonably possible — ideally within the first couple of weeks. Prompt notification helps prevent fraud and stops automatic payments or benefit deposits from continuing to hit the account.
Can I withdraw money from a deceased person's account before probate?
Generally, no — once a bank is notified of the death, an individual account without a joint owner or beneficiary is typically frozen until someone with legal authority (an executor, administrator, or small estate affidavit holder) is verified.
What happens to automatic bill payments after someone dies?
They will continue to draft from the account until it's frozen or closed, and then will likely fail, sometimes triggering late fees elsewhere. Reviewing recent statements to identify and cancel or redirect these payments is an important early step.
Do I need Letters Testamentary to close a bank account?
If the account is solely in the deceased's name and must go through probate, most banks will require Letters Testamentary (or Letters of Administration if there's no will) before releasing funds. Joint accounts and accounts with a named POD/TOD beneficiary typically do not require this.
What if the deceased had accounts at several different banks?
Each bank will need its own set of documentation — a certified death certificate and proof of authority — submitted separately, since accounts aren't automatically linked across institutions.
Is money in a joint account automatically the survivor's?
In most cases, yes, if the account was titled as joint with rights of survivorship, which is the standard default for joint accounts at most banks. The survivor still typically needs to bring a death certificate to the bank to formally retitle the account.
What happens to unclaimed bank funds if no one closes the account?
After a period of inactivity defined by state law, the bank is generally required to transfer the funds to the state's unclaimed property division. Heirs can later search the state's unclaimed property database and file a claim to recover the funds.
Sources:
FDIC — Death of an Account Owner — https://www.fdic.gov/deposit/diguidebankers/documents/death-account-owner.pdf
FDIC — Your Insured Deposits — https://www.fdic.gov/resources/deposit-insurance/brochures/insured-deposits
Consumer Financial Protection Bureau — Taking Control of Your Finances: Help for Surviving Spouses — https://files.consumerfinance.gov/f/documents/cfpb_surviving-spouse_booklet.pdf
Synovus — How to Close a Bank Account When Someone Dies — https://www.synovus.com/personal/resource-center/managing-your-finances/how-to-close-a-bank-account-when-someone-dies
Bankrate — What Happens to a Bank Account When Someone Dies? — https://www.bankrate.com/banking/what-happens-to-your-bank-account-after-death/
Nolo — Payable-on-Death (POD) Accounts — https://www.nolo.com/legal-encyclopedia/free-books/avoid-probate-book/chapter1-1.html
CDC — Mortality in the United States, 2024 — https://www.cdc.gov/nchs/products/databriefs/db548.htm