Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed Indiana probate attorney for guidance specific to your situation.
Detailed Answer
When a decedent dies owning bank accounts, financial institutions typically won’t release or freeze assets without proof of authority. In Indiana, the key document is Letters Testamentary (if there is a will) or Letters of Administration (if there is no will). A personal representative appointed by the probate court holds these letters and can present them to the bank to secure or freeze accounts.
1. Obtain Certified Death Certificate
First, secure multiple certified copies of the decedent’s death certificate from the county health department. Banks require an official death certificate to verify the account holder’s demise.
2. File a Petition for Appointment of Personal Representative
Under Indiana Code § 29-1-8-1, any interested person may petition the probate court in the county where the decedent lived to be appointed personal representative. The petition must identify all heirs and beneficiaries and include procedural notices. See IC 29-1-8.
3. Secure Letters Testamentary or Letters of Administration
Once the court grants the petition, it issues letters. Banks accept these letters as proof of authority. Present certified letters and a death certificate to request a hold on or distribution of funds.
4. Use a Small Estate Affidavit (When Applicable)
If the total personal property (excluding real estate) does not exceed $50,000, Indiana Code § 29-1-12 allows heirs to collect funds with a small estate affidavit instead of full probate. The affidavit lists account information and heirs. Banks must comply if the statutory requirements are met. See IC 29-1-12.
5. Obtain a Court Order to Freeze Assets
If co-heirs still refuse to cooperate, petition the probate court for an order to freeze or preserve estate assets until the dispute resolves. Indiana Code does not specify a separate freeze procedure, but courts have inherent authority to protect estate property. The court can enjoin all parties from withdrawing funds.
Helpful Hints
- Start probate promptly to avoid bank-imposed time limits or fees.
- Request extra certified death certificates—banks often require originals.
- Check with each bank for its own paperwork checklist and signature requirements.
- Use the Indiana Judicial Branch website for probate forms: in.gov/judiciary/probate/probate-forms.
- Keep detailed records of all filings and communications with co-heirs and institutions.
- Consider mediation in probate court to resolve heir disputes without prolonged litigation.