What Is a Deceased Account?

A deceased account is a bank account, such as a savings or checking account, that's owned by a deceased person. A bank will freeze the account when it receive𓃲s notice that a customer has died while waitin🥃g for direction from the authorized court regarding payment to heirs and creditors.

Understanding Deceased Accounts

The 澳洲幸运5官方开奖结果体彩网:next of kin must notify their banks of the death when an account holder dies. This is usually done by delivering a certified copy of the death certificate to the bank, along with the deceased’s name and 澳洲幸运5官方开奖结果体彩网:Social Security number, bank account numbers, and other information.

The bank may also require other documents, including court-issued letters testamentary or letters of administration naming an executor or administra🔴tor of the deceased’s estate.

Joint Accounts and Payable-on-Death Accounts

Accounts that the deceased 澳洲幸运5官方开奖结果体彩网:held jointly with a surviving heir are not considered to be deceased accounts. Ownership of these accounts reverts to the surviving owner, who may close the account or continue to use it. The bank should 澳洲幸运5官方༒开奖结果体彩网:release the money𒉰 to the named beneficiary if the account is a payable-on-death account when it's been provided with a certified copy of the deceased’s death certificate and the named beneficiary produces adequate identification.

Powers of Attorney on Deceased Accounts

澳洲幸运5官方开奖结果体彩网:Power of attorney arrangements end when a person dies. A survivor may have held a power of attorney that allowed them to access an account when the account holder was still alive, but they’ll no longer have access when the bank has been notified of the account holder’s death.

Trustees of Deceased Accounts

Trustees named before the death of the account holder should be able to access the deceased account. A trustee is responsible for administering the deceased person's assets that are held in a living trust and has a fiduciary responsibility to act in the best interests of the 澳洲幸运5官方开奖结果体彩网:beneficiaries. Trustees must have proper documentation, including identification and a copy o𓃲f the trustee provision,༺ to access the deceased account.

Closing Deceased Accounts

A bank usually cannot close a deceased account until the person’s estate has been settled and closed, typically through probate. The probate court will appoint an executor or administrator if one is not named in the 🌊deceased’s will or if the deceased didn't leave a will. This person will have the authority to close the deceased accounts and distribute the funds therein to heirs and creditors.

Placing a Deceased Alert

A deceased alert notifies credit card companies that an account holder has died. Credit reporting agencies such as Equifax, Experian, and TransUnion will issue an alert that will appear on the person's credit report. The alert informs credit card companies to deny credit transactions on the card going forward. The deceased person's family or executor should contact the credit bureaus to ensure a deceased alert is placed on the person's credit report.

The Bottom Line

Bank personnel are typically restricted from providing practical advice to heirs regarding how to handle the affairs of a deceased customer's account. Some banks do have estate units, but it's advisable to obtain legal assistance or contact the appropriate court for direction regarding how to handle a deceased person’s bank accounts.