Disclaimer: This article provides general information only and does not constitute legal advice.
Detailed Answer
When a person dies, their bank accounts become part of the estate and cannot be accessed until you follow the probate procedures under California law. Below is a step-by-step overview:
1. Determine Whether You Qualify for a Small Estate Affidavit
If the total value of the decedent’s personal property (excluding real estate) does not exceed $166,250, you may use a simple affidavit instead of full probate (Cal. Prob. Code § 13100). See § 13100.
- Wait at least 40 days after the date of death.
- Fill out and sign the Small Estate Affidavit.
- Submit the affidavit and a certified death certificate to the bank.
- The bank releases up to $166,250 to the person(s) entitled under the decedent’s will or California’s intestate succession laws.
2. Open a Full Probate Case
If the estate exceeds $166,250 or you need to handle debts and claims, you must open probate by filing a petition in the county probate court.
- File a Petition for Probate to appoint a personal representative (executor or administrator).
- Obtain Letters Testamentary or Letters of Administration from the court.
- Publish a notice to creditors and mail notices to potential claimants.
- Present the Letters to the bank to prove your authority.
3. Collect Estate Assets
Once you have Letters, present them to each financial institution. The bank will:
- Freeze or close the decedent’s account in their name.
- Open an estate account in the personal representative’s name, such as “Estate of Jane Doe, John Smith, Personal Representative.”
- Transfer all funds from the decedent’s account to the estate account.
4. Manage Estate Funds
The personal representative must use the estate account to:
- Pay valid debts and expenses, including funeral costs and taxes.
- Handle interim distributions to beneficiaries under court order or written consent.
- Maintain accurate records and file accountings with the court.
5. Final Distribution
After paying debts and completing all filings, you can distribute the remaining balance to the beneficiaries under the will or California’s intestacy statutes (Cal. Prob. Code § 9200). See § 9200.
Helpful Hints
- Contact the probate court clerk to verify local rules and fees.
- Keep a copy of all Letters and filings for bank presentations.
- Consult a probate attorney if the estate has complex assets or disputes.
- File your inventory and appraisal within 3 months of appointment.
- Record all receipts and disbursements in a dedicated ledger.