What Happens to a Bank Account When Someone Dies?

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When a loved one dies, there’s a lot to do. You must notify everyone and plan a funeral. It can be an emotional time. But when the funeral dust settles, the work begins, including sorting out the finances.

But what do you do with the deceased’s bank account? Your loved one might also have brokerage or retirement accounts. And they may or may not have a beneficiary. What happens to them?

Setting Up Beneficiary to Bank Account

If the bank account has a named beneficiary, the money will pass to them. But in order for this to happen, the account holder must do one of two things before they pass.