Detailed Answer
When someone dies, their bank accounts typically become part of the probate estate in Maine. Only the court-appointed personal representative (often called an executor or administrator) can legally access and withdraw those funds. Here’s how the process works under Maine law:
1. Identify Assets and Gather Documents
Locate all bank statements and account documents. Check for payable-on-death (POD) designations or joint accounts with rights of survivorship. These may pass outside probate.
Obtain certified copies of the death certificate from the clerk of courts.
2. Determine if a Small Estate Affidavit Applies
If the deceased’s personal property (excluding real estate) totals $40,000 or less, the representative may use a small estate affidavit instead of full probate. See 18-A M.R.S. §3-1103: https://legislature.maine.gov/statutes/18-A/title18-Asec3-1103.html
3. Open Probate and Obtain Letters
File a petition for probate in the Probate Division of the Maine District Court. Cite 18-A M.R.S. §1-301 for appointment of a personal representative: https://legislature.maine.gov/statutes/18-A/title18-Asec1-301.html
After court review, you’ll receive Letters Testamentary (if there’s a will) or Letters of Administration (if no will). These documents authorize you to act on behalf of the estate.
4. Collect and Manage Funds
Present the original Letters and death certificate to each banking institution. Banks must comply under 18-A M.R.S. §3-1101, which governs collection of estate assets: https://legislature.maine.gov/statutes/18-A/title18-Asec3-1101.html
Banks may have their own release forms. Complete their requirements to transfer or withdraw funds into the estate account.
5. Pay Debts and Distribute Remaining Funds
The personal representative uses estate funds to pay valid creditors, file final tax returns, and cover administrative expenses. After debts clear, distribute the remaining balance to heirs or beneficiaries under the will or Maine’s intestacy rules (18-A M.R.S. §2-102).
Keep detailed records. The court may require an inventory and final accounting before closing probate.
Joint Accounts and POD Designations
Accounts held jointly with rights of survivorship, or those labeled POD (payable on death), pass directly to the surviving owner or named beneficiary. They usually avoid probate, but banks will still ask for the death certificate and proof of identity.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney in Maine for guidance tailored to your situation.
Helpful Hints
- Order multiple certified death certificates early to avoid delays.
- Check all account types: checking, savings, CDs, and retirement plans.
- Use the small estate affidavit if the estate qualifies to save time and fees.
- Maintain a separate estate bank account for all transactions.
- Keep receipts and a log of every withdrawal and payment.
- Notify creditors promptly and follow Maine’s notice requirements.
- Consider professional help if the estate is large or complex.