How Do I Access a Deceased Owner’s Account? Part 2

Last week I addressed a question we get frequently in our office – how to access the financial account of a loved one who has died.   The answer is not the same for each account.

We must first determine whether the account is a probate or non-probate asset, meaning “is it controlled by the will or if there is no will then by the intestacy laws”.  In both cases one must first file papers with the county Surrogate’s office.  This is part of what is known as the estate administration.

If the account is titled in the deceased owner’s name alone with no co-owners and no beneficiary payable on death, then the estate administration process must be begun by seeking appointment either as an executor (if a will exists that names that person) or an administrator if there is no will.  In that case New Jersey law decides who has the right to be appointed beginning first with the spouse and then children.

Once the Surrogate issues Letters Testamentary (there being a validly executed will) or Letters of Administration (in the absence of a validly executed will), the person appointed may present those papers to the financial institution to then access the funds.  Once obtained, the executor/administrator must deposit the funds into an estate account.  From there he/she must pay all the debts and taxes if any before distributing what is left to the rightful heirs.

If the account has a co-owner with right of survivorship on the other hand, then the estate administration process is not necessary to access this account.  The surviving co-owner may present a death certificate to be able to unfreeze the account which now becomes 100% owned by that surviving owner.  Similarly, in a case where there is a payable upon death designation, the beneficiary (or beneficiaries) may present a death certificate to be able to withdraw the funds from the account.

There is one potential hiccup, however, to accessing all the funds.  The financial institution may only initially agree to release one half of the funds.  I’ll explain more about that next week.