How to Claim a Deceased Bank Account Without Probate

When someone dies, their bank accounts do not always have to go through probate before the money becomes accessible. Many accounts pass directly to a named beneficiary through tools like payable-on-death (POD) designations or joint ownership with rights of survivorship. In other cases, small estate laws may allow heirs to claim funds using an affidavit rather than a court process. The specific path depends on how the account is titled and the rules in the state where the account is held.

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What Happens to a Bank Account When the Owner Dies?

What happens after a person dies depends largely on how they set up their bank account before death. If the account has a named beneficiary, the funds typically transfer directly to that person once the bank receives proof of death and identification. The same generally applies for jointly owned accounts with rights of survivorship, where the surviving owner retains access to the money.

If the account holder did not list a beneficiary and owned the account individually, the bank will usually freeze the funds. At that point, it will limit account access until it establishes the legal authority to distribute the assets. This authority may come from a probate court or, in some cases, through a small estate affidavit allowed under state law. Until the bank receives the required documentation, it will typically restrict withdrawals, though it may permit limited payments for funeral costs or final expenses.

Banks also review account balances, ownership records and applicable state rules before releasing funds. Because account structures vary, two accounts held at the same bank can follow very different paths after the owner’s death, depending on how each one was titled and documented.

What Is a Payable-on-Death (POD) Account?

A POD account is a bank account that names one or more beneficiaries who can receive the funds after the account owner dies. While the owner is alive, the beneficiary has no access to the money and no control over the account. The owner can change or remove beneficiaries at any time, as long as they are mentally competent.

When the account owner dies, the bank releases the funds directly to the named beneficiary once it receives a death certificate and proper identification. The account does not become part of the probate estate, which can shorten the time it takes for the money to change hands. POD accounts are common for checking, savings and certificates of deposit (CDs).

Although POD accounts simplify transfers, they still interact with the rest of an estate plan. For example, beneficiary designations can override instructions in a will. Additionally, the funds can still factor into calculations for estate taxes or when settling creditor claims, depending on state law.

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What Happens to a Joint Account?

A joint bank account can follow different outcomes after one owner dies, depending on how the account was titled. Many joint accounts are set up with rights of survivorship. This means the surviving owner automatically becomes the sole owner of the funds. In that case, the bank typically allows continued access once it updates its records and receives a death certificate.

Some joint accounts, however, do not include survivorship rights. This structure can apply in certain states or for specific purposes. When that happens, the deceased owner’s share may be treated as part of their estate and subject to court involvement or estate settlement procedures. The bank will usually review the account agreement to determine how ownership transfers.

It’s also worth noting that joint ownership does not always reflect intent. Adding someone to an account for convenience, such as helping with bill payments, can unintentionally give that person ownership rights at death. This can lead to outcomes that differ from what a will or trust describes, especially if the account was not coordinated with the rest of the estate plan.

Claiming a Deceased Bank Account from a Small Estate

When a bank account lacks a beneficiary or joint owner, it’s still possible to claim through a small estate process rather than full probate. Many states allow heirs to use a small estate affidavit. This is a sworn document stating their right to the assets, instead of going through court administration. The bank typically requires the affidavit, a death certificate and proof of identity before releasing funds.

Eligibility depends on the total value of the estate and state law. For example, California allows small estate transfers for estates valued at $208,850 or less (for deaths that occurred on or after April 1, 2025). Meanwhile, Texas generally uses a $75,000 threshold for estates that don’t include a homestead. New York sets its small estate limit at $50,000.

Once the required waiting period passes, an eligible heir can submit the affidavit directly to the bank. This approach can shorten timelines and reduce costs, though rules and documentation vary by state.

Bottom Line

Understanding how bank accounts are handled after death often comes down to ownership structure, beneficiary designations and state-level rules. Accounts with POD designations or rights of survivorship features tend to transfer more directly. Individually owned accounts, in contrast, may require additional legal steps. Reviewing how accounts are titled and how they fit into a broader estate plan can help reduce uncertainty for heirs and align outcomes with a person’s intentions.

Estate Planning Tips

Estate taxes, income taxes on inherited accounts and ongoing expenses can create cash-flow issues for heirs. Planning ahead for liquidity through asset placement, charitable strategies or insurance can help avoid forced sales of investments or property at inconvenient times.
A financial advisor can help identify gaps, model outcomes for different scenarios and work alongside an estate attorney to make sure your plan reflects how your assets are actually held and expected to grow over time. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.