The account enters probate, and a court decides who gets the money

When someone dies without naming a beneficiary on their bank account, the bank freezes the account and the money becomes part of their estate. A court process called probate then determines who receives it. The court follows the person's will if one exists, or state law if there is no will. This process is slower and more expensive than accounts with named beneficiaries, and it is public — anyone can see the details in court records.

The timeline varies by state and by how complicated the estate is, but probate typically takes between six months and two years. During that time, the account remains frozen and no one can withdraw money without a court order. If there are debts, taxes, or funeral expenses, those get paid from the account before heirs receive anything.

Key Takeaways

  • A bank account without a named beneficiary goes through probate court, where a judge decides who inherits based on the will or state law.
  • The account freezes when ready after death, and money cannot be withdrawn until the court process is complete.
  • Probate is public, costs money in court and attorney fees, and usually takes six months to two years.
  • Creditors, taxes, and funeral expenses are paid from the account before any heirs receive their share.
  • Naming a beneficiary on the account avoids probate entirely and lets money transfer directly to that person within days.

How the probate process works for bank accounts

When the bank is notified of a death, it places a hold on the account. The person's family or executor then files paperwork with the probate court in the county where the person lived. The court appoints an executor (or uses the one named in the will) to manage the estate and distribute assets according to the will or state law.

The executor must locate all of the person's assets, notify creditors and heirs, pay any debts and taxes, and then distribute what remains. The bank account is listed as an estate asset, and the executor can only access it with a court order. Once the court approves the distribution plan, the executor can withdraw money and pay it out to heirs.

If there is no will, state law determines the order of inheritance — usually spouse first, then children, then parents, then siblings. The exact order depends on which state the person lived in.

What costs are paid before heirs receive money

Several expenses come out of the account before any heir sees a dollar. Funeral and burial costs are typically paid first. Then come court fees, executor fees (usually 3 to 5 percent of the estate), and attorney fees if a lawyer is hired to handle probate. In many states, attorney fees are set by law or approved by the court.

After that, creditors are paid — credit card companies, medical providers, mortgage lenders, and anyone else the person owed money to. Federal and state taxes are also paid from the account. Only after all of these are settled does money go to heirs. In some cases, there may be nothing left.

How long the account stays frozen

The account is frozen from the moment the bank is notified of death until the probate court issues an order allowing the executor to access it. This initial freeze usually happens within days of notification. The executor can then petition the court for access, but the court will not release funds until debts and taxes are resolved.

In straightforward cases with a clear will and no disputes, this can take four to six months. In complex estates with multiple heirs, contested wills, or significant debts, it can stretch to two years or longer. Some states offer expedited probate for small estates under a certain dollar amount — usually $10,000 to $50,000 — which can reduce the timeline to a few weeks.

State law determines who inherits if there is no will

Each state has its own rules about who inherits when someone dies without a will. These rules are called intestacy laws. Generally, a surviving spouse inherits first, then children, then parents, then siblings. But the exact split varies — some states give everything to the spouse, others split it between spouse and children.

If there is no spouse or children, the money goes to parents, then siblings, then aunts and uncles, then cousins. If no relatives can be found, the money goes to the state. The probate court will search for heirs, and if you believe you are may have access to to a share, you can file a claim with the court during the probate process.

Why naming a beneficiary avoids all of this

A payable-on-death (POD) beneficiary or transfer-on-death (TOD) account bypasses probate entirely. When you name a beneficiary on your bank account, that person receives the money directly when you die — no court involvement, no delays, no public record. The transfer typically happens within days of providing a death certificate to the bank.

You can name a beneficiary on most checking and savings accounts at any time by contacting your bank. You can change or remove the beneficiary whenever you want while you are alive. If you die without updating it, the money still goes to whoever you named last, regardless of what your will says. This is why it is important to review beneficiary designations after major life changes like marriage, divorce, or the birth of children.

What to do if you are an heir waiting for access

If you are waiting for money from a frozen account, contact the probate court in the county where the person died. Ask for the case number and the name of the executor. You can also contact the executor directly — their name and contact information should be in the court file or in the will.

Request a timeline for when funds will be distributed. If the process is taking longer than expected, ask the executor why. If you suspect the executor is mishandling the estate or delaying intentionally, you can file a complaint with the court. Some states allow heirs to petition for early distribution of their share if the estate is taking too long to settle.

Frequently Asked Questions

Can the bank release money to pay funeral costs before probate is done?

Some banks will release a limited amount directly to pay funeral expenses with a death certificate and funeral bill, without waiting for a court order. This varies by bank and state. Contact the bank when ready after death and ask if they have a funeral expense exception. If they do not, the executor can petition the court for an emergency order to pay funeral costs.

What if the person had a will but did not name a beneficiary on the account?

The will does not override the account. The account still goes through probate and is distributed according to state law, not the will. The will only controls assets that do not have a named beneficiary or a transfer-on-death designation. This is why it is important to name beneficiaries on accounts separately from writing a will.

Can I access the account if I have power of attorney?

No. Power of attorney ends when someone dies. You cannot use it to access a frozen account. Only the executor appointed by the court can access the account, and only with a court order. If you need money for when ready expenses, ask the executor to petition the court for emergency access.

What happens if there are multiple people claiming to be heirs?

The probate court will hear claims from anyone who believes they are may have access to to a share. The court will determine who qualifies based on state law and any will. If heirs disagree about the distribution, the court will decide. This is one reason probate can take a long time — disputes delay the process.

Is there a way to speed up access to the money?

If the estate is small enough to may have access to for expedited probate in your state, the timeline can be cut to a few weeks. Ask the executor or the probate court clerk whether the estate qualifies. Some states also allow heirs to petition for early distribution of their share if waiting would cause hardship, though courts rarely grant this.