Posted On: March 31, 2025 by Prevail Bank in: Banking
A Step-by-Step Guide
(2025) Losing a loved one is never easy, and along with the emotional toll, there are often practical matters that need to be handled. One of the things that might come up in the days and weeks following a death is the management of their bank accounts. While it can feel overwhelming, taking things one step at a time can make the process smoother. Here’s a simple guide to help you navigate this difficult task with care and clarity.
1. Get the Death Certificate
Before you can do anything with your loved one's bank accounts, you'll need an official copy of their death certificate. You can usually get this through the funeral home or directly from the vital records office in the state where the death occurred. You’ll want to have several certified copies of the death certificate, as different institutions may require them to make changes to accounts.
2. Notify the Bank
Once you have the death certificate, the next step is to inform the bank. It’s a good idea to reach out to the bank where your loved one held accounts and let them know about the passing. You’ll likely need to provide a copy of the death certificate along with your identification to prove your relationship to the deceased.
Most banks have a specific process for dealing with the accounts of deceased customers. Be ready to explain your role (whether you’re an executor, administrator, or a close family member) and ask them what documents they’ll need to proceed.
3. Identify the Type of Account
Banks often have different types of accounts, and the way each account is handled can vary based on its ownership and the agreements in place. Here are a few common scenarios:
- Joint Accounts: If your loved one shared an account with someone else, such as a spouse, the surviving account holder will typically be able to continue using the account without interruption.
- Joint Loan/Mortgage: To remove a deceased individual from a loan, a certified copy of the death certificate will be required. If the bank needs anything else, they’ll let you know.
- Special Note: While the names on the loan will change, the names on the recorded mortgage does not. If the living survivor would like the name of the deceased removed from the deed or title, they would need to remove it through county records by refinancing the loan.
- Single-Party Accounts: For accounts that were solely in your loved one’s name, the bank will let you know what is needed.
- Trust Accounts: If the deceased had a trust, the instructions for handling the accounts may already be outlined, which can simplify the process.
4. Accessing the Funds
If you need to access funds from the account (for funeral expenses, bills, etc.), the bank might allow access through a "small estate affidavit" or similar legal document. This will depend on the total value of the estate and local laws. In many cases, however, you may need to go through the probate process to settle the account.
If you’re named as the executor of the estate, you may be granted limited access to manage specific transactions until the full probate process is completed.
5. Review Other Financial Accounts
In addition to bank accounts, there may be other financial accounts, like investment accounts, retirement funds, or insurance policies, that need to be managed. Make sure you review all assets and get in touch with the relevant institutions to inform them of your loved one’s passing and begin the necessary paperwork to transfer or close those accounts.
6. Notify Creditors and Cancel Recurring Payments
While handling your loved one's financial matters, you’ll also need to cancel or transfer any recurring payments like utility bills, subscriptions, or loans. Contact credit card companies, mortgage lenders, and other service providers to let them know about the death. You’ll likely be asked to provide a copy of the death certificate.
Remember, if your loved one has any outstanding debts, these typically need to be paid out of the estate before any assets can be distributed.
7. Notify Social Security, Veterans Services, Pension Services
As soon as possible, report the death to the Social Security Administration (SSA) by calling 1-800-772-1213 or by visiting your local Social Security office. To stop Social Security benefit payments and to potentially initiate survivor benefits for eligible family members, you’ll need the deceased’s Social Security number, a death certificate, and possibly proof of the deceased’s earnings for the previous year.
If your loved one was a veteran, contact the Veteran’s Administration; s/he may be entitled to additional benefits for funeral or burial costs. In some instances, a surviving spouse or dependent children may also be eligible for continuing benefits.
If your loved one was receiving a pension, call the pension administrator to notify them of your loved one’s passing.
8. Choose: Close or Transfer Accounts
It is quite possible that your loved one had designated beneficiaries for their various investments and bank accounts; PODs and TODs (payable on death, transfer on death). If that is the case, these funds are already ‘spoken for’ and will not be a part of the probate process.
For those accounts that don’t have a POD or TOD, and after paying any outstanding debts and taxes, you will have the opportunity then to distribute the funds according to the terms of the will, and/or close or transfer a loved one’s bank accounts.
9. Seek Professional Help If Needed
If things get overwhelming or complicated, don’t hesitate to seek the help of a financial advisor, lawyer, or estate planner. They can help you navigate any tricky legal or financial situations, ensuring that everything is handled according to your loved one’s wishes and legal requirements.
A Final Word
Dealing with the financial matters after a loved one’s death will be stressful. Take your time, be patient with yourself, and lean on professionals when needed.
Remember to allow yourself the space to grieve as well. Handling the details can wait while you take care of yourself.
If you have any questions about specific steps, don’t hesitate to reach out to your bank or a legal expert who can provide personalized guidance.
Prevail Bank cares about you and your financial needs and challenges. Reach out to us. Let us help you.
