What to Do with Bank Accounts After a Loved One Dies

A practical guide from The Shore Lawyer.

After the Funeral, the Paperwork Begins

Once you've gotten past the funeral and the service, most people start asking the same question: "Now what do I do with the bank accounts, the assets, the bills?"

If the loss was sudden, things can get messy fast. Here's what you need to know.

Does the Account Have a Payable-on-Death Beneficiary?

The first question is whether your loved one named a payable-on-death (POD) beneficiary. That means they went to the bank, filled out forms, and said: "When I die, I want this person to receive my money."

If they did, that person can go to the bank, identify themselves, and collect the balance. Simple.

If you're not sure whether you're named as the POD beneficiary, start by asking the bank. If your spouse had everything in your name, it's usually straightforward.

Get the Account Balance Before You Call the Bank

This is the step most people miss, and it matters a lot.

Before you notify the bank that your loved one has died, get the account balance as of the date of death. You'll need this number to open the estate. The easiest way to get it: download the bank statement and the daily transaction summary.

If your loved one had paper statements, easy. If everything was electronic, check whether you have access to their email or phone, and whether you can log in to the account to pull that statement.

Important: Logging in to get the information is okay. Touching the money is not.

Once someone dies and their name is the only one on an account, you have no legal authority to move or use those funds. Even if you held power of attorney, that power dies with them. Do not spend the money. Do not transfer it. Just get the statement and save it.

Why This Order Matters

Once you notify the bank that your loved one has died, the bank locks the account. At that point, they are not authorized to tell you the balance, even if you're the one named in the will.

To open the estate, the court needs to know what the deceased person had in their accounts. You can't tell the court what's in the account if the bank won't tell you, and the bank won't tell you once the account is locked.

So: screenshot the statement first, then notify the bank.

What If You Already Told the Bank?

Don't panic. You'll need to petition the court for a limited order that tells the bank to release the account balance to you. It's more work, but it's solvable.

Getting Appointed as Personal Representative

Once you have the balance information, the next step is going to court to be appointed as personal representative (PR) of the estate.

You'll present the will, which names the PR, and the court will confirm whether that person is eligible to serve. Past financial crimes, for example, could disqualify someone even if the will names them.

Once the court approves you, you receive a Letter of Administration (in Maryland) or a Letter of Qualification (in Virginia). That letter is your legal ID to act on behalf of the deceased person's estate.

With it, you can open an estate account, such as "Estate of John Doe," and move the funds there. You cannot just tell the bank you're in charge. The court has to appoint you first.

Managing the Estate Carefully

As personal representative, you're responsible for paying the right debts in the right order. Getting that wrong can create real problems. The role carries significant responsibility.

The Easier Path: Plan Ahead

The best way to spare your family all of this is a solid estate plan. Named beneficiaries on accounts, a clear will, and proper documentation make the process much smoother.

If you're already in the middle of it, take a breath. As long as you're making careful, honest choices and not spending money that isn't yet yours, you can get through it.

Need Help?

Our office assists with probate paperwork and estate administration, and we work to keep costs manageable. If you want to plan ahead and spare your loved ones this process entirely, we'd love to help with that too.

Contact us today. We're here when you need us.