The account goes into probate, and the court decides who gets the money
When someone dies without naming a beneficiary on their bank account, the bank freezes the account. The money does not automatically go to a spouse, child, or anyone else. Instead, the account becomes part of the probate estate, and a court—usually in the county where the person lived—decides who receives it based on state law.
The process is slower and more expensive than accounts with named beneficiaries. The court appoints an executor (if there is a will) or an administrator (if there is no will), and that person must file paperwork, notify creditors, pay taxes and debts, and then distribute what remains according to either the will or state intestacy law. This can take anywhere from several months to over a year, depending on the state and whether anyone contests the distribution.
During this time, no one can withdraw money from the account without a court order. The account sits frozen, and family members cannot access funds even for funeral expenses or immediate bills unless they petition the court for an emergency order.
Key Takeaways
- Bank accounts without named beneficiaries enter probate, meaning a court controls the money until the estate is settled.
- State law determines who inherits the money—usually a spouse first, then children, then parents or siblings—but the order varies by state.
- The probate process costs money in court fees and attorney fees, and can take six months to over a year.
- Named beneficiaries bypass probate entirely and receive money directly from the bank within weeks, making them far faster and cheaper.
- If the account holder left a will, the account still goes through probate even if the will names an heir.
How state law decides who inherits the money
Each state has intestacy laws that rank who gets the money in a specific order. The ranking is almost always: spouse, then children, then parents, then siblings, then more distant relatives. But the exact order and whether a surviving spouse gets everything or shares with children varies significantly by state.
In some states, a surviving spouse gets the entire account if there are no children. In others, the spouse gets a portion and the children split the rest. If there is no spouse, children inherit equally. If there are no children or spouse, parents inherit; if no parents, siblings inherit. If no relatives can be found, the money goes to the state.
The executor or administrator must follow the state's intestacy law exactly. They cannot give the money to someone the deceased person would have wanted it to go to if that person is not next in line under state law. A court will overturn any distribution that does not follow the statute.
The probate process and what it costs
Probate begins when someone files a petition with the court in the county where the deceased person lived. If there is a will, the executor named in the will files it along with the petition. If there is no will, any interested party (usually a family member) can petition to be appointed administrator.
The court then issues a notice to creditors, which is published in a local newspaper. Creditors have a set time (usually three to six months, depending on the state) to file claims against the estate. The executor or administrator must pay all valid claims—credit card debt, medical bills, taxes, funeral expenses—before distributing anything to heirs.
Court filing fees vary by state but typically range from $200 to $500. If the estate is large or complicated, or if family members disagree about the distribution, an attorney is usually necessary, and legal fees can run $1,000 to $5,000 or more. These costs come out of the estate before anyone receives their inheritance.
Why named beneficiaries are faster and cheaper
A bank account with a named beneficiary (also called a "payable on death" or POD account) bypasses probate entirely. When the account holder dies, the beneficiary contacts the bank with a death certificate and identification, and the bank transfers the money directly to them. This typically takes two to four weeks.
There are no court fees, no attorney fees, and no waiting for creditors' claims to expire. The money goes straight to the person named, regardless of what a will says or what state law would otherwise require. The only exception is if the estate has significant debts; creditors can sometimes pursue the beneficiary to recover what they are owed, but this is rare and requires a separate lawsuit.
For this reason, financial advisors recommend naming a beneficiary on every bank account, even if you have a will. It is free to do, takes five minutes, and can save your family months of waiting and thousands of dollars in costs.
What happens if the account holder had a will but no beneficiary named
A will does not override the need for probate on accounts without named beneficiaries. Even if the will clearly states who should get the bank account, the account still goes through the full probate process. The will is just a document that tells the court what the deceased person wanted; it does not transfer the account automatically.
This is a common misunderstanding. Many people think a will handles everything, but a will only directs the probate court on how to distribute the estate. It does not speed up the process or avoid court involvement. Named beneficiaries are the only way to bypass probate.
How to check if an account has a beneficiary
If you are the executor or administrator of an estate, contact the bank directly. Ask to speak with the estate services department and provide the account number and a death certificate. The bank will tell you whether a beneficiary is named on the account.
If you are a family member trying to find out whether a deceased relative named you as a beneficiary, you will need to contact the bank as well. Banks do not release this information to just anyone, but they will usually confirm it to a spouse, adult child, or other close relative if you provide a death certificate and proof of your relationship.
If the account holder is still living and you want to check your own account, log in online or call your bank's customer service line. Most banks allow you to view and change beneficiaries through their website or by phone.
What to do if you are an executor or administrator
Your first step is to locate all of the deceased person's bank accounts. Check their mail, online banking login history, and tax returns. Ask family members if they know of any accounts. Once you have identified all accounts, contact each bank and ask whether a beneficiary is named.
For accounts without beneficiaries, you will need to open a probate case in the county where the deceased person lived. File a petition with the probate court (or surrogate's court, depending on your state), provide a death certificate, and request to be appointed executor or administrator. The court will issue an order giving you authority to manage the estate.
With the court order in hand, return to the bank and provide it along with a death certificate. The bank will then allow you to access the account, pay bills and creditors, and eventually distribute the remaining balance to heirs according to the court's instructions.
Frequently Asked Questions
Can family members withdraw money from the account before probate is finished?
Not without a court order. The bank will freeze the account as soon as it learns of the death. Family members can petition the court for an emergency order to access funds for funeral expenses or essential bills, but this requires filing paperwork and waiting for a judge to rule. Named beneficiaries can withdraw their money immediately.
What if multiple people claim they should inherit the account?
The probate court decides based on state intestacy law. If two people are equally ranked under the law (for example, two adult children), they split the account equally. If they disagree about the distribution, either party can ask the court to resolve the dispute, but the court will follow the statute, not personal preference.
Does the bank account have to go through probate if the person had a will?
Yes, if no beneficiary is named on the account itself. A will does not transfer bank accounts; it only tells the probate court how to distribute them. The account still goes through the full probate process. Only a named beneficiary or a joint account holder can avoid probate.
How long does it take to get money from an account in probate?
Typically six months to over a year, depending on the state, the complexity of the estate, and whether anyone contests the distribution. Simple estates with no disputes can move faster, sometimes in four to six months. Large estates or those with family conflict can take two years or more.
What if the deceased person owed money to creditors?
Creditors are notified during probate and can file claims against the estate. The executor or administrator must pay all valid claims before distributing money to heirs. If the account does not have enough to cover all debts, heirs may receive nothing, or only a partial inheritance.