Detailed Answer

When someone dies owning funds in a bank account, those assets usually pass through the New Mexico probate process before distribution. Probate is the court-supervised procedure of proving a will (if one exists), appointing a personal representative, paying debts, and distributing assets to heirs or beneficiaries.

1. Open Probate and Appoint a Personal Representative

First, file a Petition for Probate in the district court of the county where the decedent last lived. If the court approves, it issues Letters Testamentary (for a will) or Letters of Administration (if there’s no will). These documents empower the appointed person to manage and distribute estate assets. See NMSA 1978, § 45-3-302 (Probate of Will; Letters Testamentary).

2. Locate and Inventory the Bank Account

The personal representative must identify and list all bank accounts owned solely by the decedent. Under NMSA 1978, § 45-3-1008(Powers of Personal Representative), they have authority to collect assets, including cash in bank accounts.

3. Present Required Documents to the Bank

Most banks require:

• A certified copy of the death certificate.
• Original or certified copy of Letters Testamentary or Letters of Administration.
• A current form of ID for the personal representative.

Once the bank verifies these, it can release funds to the personal representative. Banks must follow uniform rules but may impose reasonable processing fees.

4. Paying Debts and Distributing Funds

The personal representative uses estate funds to pay funeral expenses, taxes, and valid creditor claims. See NMSA 1978, § 45-3-803 (Order of Priority for Payment). After debts and expenses, the remaining balance is distributed per the will or, if there is no will, under New Mexico’s intestacy laws.

Keep detailed records of all withdrawals and distributions. You must file a final accounting with the probate court for approval before closing the estate.

Disclaimer: This article is for educational purposes only and does not constitute legal advice. Always consult a licensed attorney for guidance on your specific situation.

Helpful Hints

• Make certified death certificates early. Banks often require multiple copies.
• Confirm bank-specific probate procedures—each institution varies.
• Track all estate expenses to simplify court accounting and avoid disputes.
• Maintain communication with heirs; transparency reduces conflicts.
• Consult an attorney if you encounter unusual assets or contested claims.