What happens to bank account when someone dies without beneficiary or will

happens to bank account when someone dies without beneficiary or will, their bank account becomes part of their estate and goes through probate. The court oversees the distribution of assets according to state intestacy laws, which determine the heirs. This process can be lengthy and costly, emphasizing the importance of having a will and designated beneficiaries to ensure smooth asset transfer.

happens to bank account when someone dies without beneficiary or will

happens to bank account when someone dies without beneficiary or will

When someone dies without a beneficiary or a will, their bank account becomes part of their estate and is subject to the probate process. A court supervises the distribution of the deceased’s assets during the probate process.

The court will appoint an administrator to handle the estate, including the bank account. This administrator will pay off any debts and taxes owed by the deceased. After these obligations are settled, the remaining funds in the bank account will be distributed according to the state’s intestacy laws, which typically prioritize spouses, children, and other close relatives.

This process can be lengthy and may incur additional costs, potentially diminishing the value of the estate. To avoid such complications, it is advisable to designate beneficiaries and create a will.

happens to bank account when someone dies without beneficiary or will

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