Losing someone close is never easy. Amid the emotional toll, there are also practical matters that must be addressed—many of which involve financial and legal responsibilities. As your trusted tax and accounting advisors, we want to help ease this burden by outlining key steps to take after a death, especially when it comes to managing bank accounts and accessing funds.
First Steps: Legal and Administrative Essentials
Before you can act on behalf of the deceased, certain documents and procedures are required:
- Obtain multiple copies of the death certificate. You’ll need these for banks, insurance companies, government agencies, and more. Most of these entities will make a copy and return the original to you, so you may need five or fewer certified copies of the death certificate.
- Locate the will (if one exists) and/or the trust documents, if applicable. These documents will name the executor or fiduciary—the person(s) legally authorized to manage the estate.
- File for probate if necessary. Probate is the legal process of validating the will and granting the executor authority to act. Some assets may pass outside probate, such as jointly held accounts or those with named beneficiaries.
Bank Accounts: What Happens and What You’ll Need
Bank accounts are typically frozen upon notification of the account holder’s death. Here’s what to expect:
Individual Accounts
- Frozen immediately once the bank is notified.
- Access requires legal authority, usually through probate.
- The executor or fiduciary must present:
- A certified death certificate
- Proof of identity
- Court-issued Letters Testamentary (or Letters of Administration if there is no will)
Joint Accounts
- Often remain accessible to the surviving account holder.
- The bank may still require a death certificate to update records.
Payable-on-Death (POD) or Transfer-on-Death (TOD) Accounts
- Bypass probate and go directly to the named beneficiary.
- Beneficiary must provide:
- Death certificate
- Valid ID
- Possibly a claim form, depending on the institution
Other Financial Considerations
- Notify Social Security to stop benefits and inquire about survivor benefits.
- Contact insurance companies to file claims.
- Review outstanding debts and notify creditors.
- Secure digital assets, including online banking and investment accounts.
- Meet with a tax advisor to discuss final income tax returns and potential estate tax filings. Settling the decedent’s financial affairs may require additional filings, and a tax professional can provide valuable assistance.
We’re Here to Help
Navigating the financial aftermath of a loved one’s death can be overwhelming. Our compassionate and highly experienced team is available to guide you through estate administration, tax filings, and financial planning for the future. If you’ve recently lost a loved one or are simply planning ahead, professional support matters. Call us to book a consultation.
