Losing a loved one is hard enough, but what happens when you find out they had a bank account with no clear instructions on what to do next? If there’s no will, things can get complicated. Who gets the money? Does the bank just hand it over to the family? Or does the state step in? These are the kinds of questions we often hear at Blacksburg Law, and we’re here to help break it down for you to understand.
At Blacksburg Law, we understand how overwhelming estate administration can be—especially when someone passes away without a will. With years of experience handling probate and estate planning in California, we help families understand what happens to a deceased person’s bank account when there are no written instructions. Whether you’re trying to avoid these pitfalls in the future or dealing with a loved one’s estate right now, this guide will help you understand your options.
When someone dies without a will (known as dying “intestate”), what happens to their bank account depends on the type of account they had and whether a beneficiary was named. Let’s take a closer look.
If the deceased was the only person on the account and didn’t designate a payable-on-death (POD) beneficiary, that money becomes part of their estate and will need to go through probate. The court appoints an administrator who will handle the process, including paying off debts and distributing any remaining funds according to California’s intestate succession laws.
Why is this a problem? Well, probate takes time—often months or even years. It also comes with legal fees and court costs, which is an expense on the money left behind. Plus, if there are multiple heirs, disagreements over who gets what can slow things down even more.
Not all accounts require probate. If the deceased had a joint account with someone else, what happens next depends on how the account was set up.
If the account was set up as a joint tenancy with the right of survivorship, the surviving account holder automatically inherits the funds. This usually requires presenting the bank with a death certificate and completing some paperwork. While this avoids probate, it’s important to know that not all joint accounts include survivorship rights.
If an account is joint but does not include a survivorship clause, the deceased person’s share of the money goes into probate. The court will decide how the funds are distributed based on intestacy laws. You can usually check the account agreement or ask the bank to confirm whether survivorship applies.
A POD or TOD account is one of the simplest ways to avoid probate. These accounts have a named beneficiary, and when the owner dies, the bank releases the funds directly to that person. The beneficiary usually needs to provide a death certificate and identification to claim the money.
These accounts are a great way to ensure your loved ones get access to your money quickly and without legal headaches. However, they do have limitations. If the named beneficiary has passed away, or if no one was named, the account will still end up in probate.
When there’s no will, the probate process determines what happens to the deceased person’s bank accounts. Here’s how it works:
In most cases, banks freeze sole-owned accounts when the account holder passes away. They won’t release the money until someone provides legal proof of authority—usually a court-appointed administrator. This is why probate is required for many accounts without a named beneficiary.
The court-appointed administrator must identify all assets, including bank accounts. This usually involves checking financial records, contacting banks, and gathering account statements. The administrator must report everything to the court before moving forward with payments and distributions.
Before heirs receive anything, debts and taxes must be settled. This includes funeral costs, outstanding loans, medical bills, and any owed taxes. Some debts, like mortgages and secured loans, take priority, while unsecured debts like credit cards come later in the repayment order.
Once debts and taxes are paid, the remaining funds are distributed to the heirs based on California’s intestate succession laws. The administrator must keep detailed records and provide an accounting to the court to ensure everything is handled properly. Mishandling funds can lead to legal trouble, so following the correct process is critical.
Probate isn’t just time-consuming—it can also lead to family disputes, unexpected legal fees, and long waiting periods. The process can take anywhere from six months to several years, and costs can eat into the estate’s value. That’s why many families choose to plan ahead with trusts and beneficiary designations.
When someone dies without a will, California law determines who inherits their assets, including bank accounts.
California has strict rules for distributing assets when there’s no will. The probate court follows a set order, making sure the closest relatives inherit first. Bank accounts without a beneficiary or joint owner are included in this process.
The order of inheritance in California looks like this:
For example, if a person dies with a spouse and two children, the spouse gets half of the assets, and the children split the other half.
California is a community property state, meaning assets acquired during marriage are shared between spouses. However, separate property (assets owned before marriage or received as gifts/inheritance) follows intestate succession laws. This distinction affects how bank accounts are divided.
California allows a small estate affidavit to bypass probate if the estate’s total value is below a certain threshold (currently $184,500). This process is much simpler and quicker than full probate, allowing heirs to claim funds by presenting an affidavit to the bank. However, not all estates qualify, and large bank accounts usually require probate.
Losing a loved one is difficult enough—don’t leave your family struggling with legal uncertainty. If you’re in California and want to ensure your assets are handled properly, we can help.
At Blacksburg Law, we believe estate planning is more than just paperwork—it’s about protecting your assets, caring for your responsibilities, and securing your legacy. Whether you need to create a will, set up a trust, or manage a probate case, we provide personalized guidance every step of the way.
Call us at 415-508-5600 to schedule a consultation. Let’s create a plan that ensures your loved ones are taken care of the way you intend.
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