How Do I Access a Deceased Owner’s Account? (Part 1)

It is a common question we get when someone calls our office after a family member dies.  “Can I still access their account since I am agent under power of attorney?” or “Can I use the account to pay for the funeral and other bills that need to be paid?”

These questions don’t lend themselves to easy “yes” or “no” responses.  The answers depend on a number of different factors so that in some cases funds from the account can be tapped into immediately while in other cases there are steps that must be taken to “free up” the account.

When someone dies, financial institutions will generally put a hold or “freeze” on the account once they learn of the owner’s passing (often when Social Security is notified and direct deposits into an account are stopped).  In part, that’s because it must be determined who now has the right to those funds.  It is no longer the owner who died and so it also is no longer the agent under power of attorney for that owner.  By law, the power of attorney no longer has effect.

So, who can then step in?  The answer depends on whether the account becomes a probate asset,  falling under the estate administration process.  In that case, an executor or administrator will take control.  Or the account could be a non-probate asset, passing outside of the estate administration process.  I’ll explain what I mean next week.