In general, the funeral home is given the decedent’s (the person who passed away) social security number, and they notify the Social Security Administration of the decedent’s passing by completing the required forms. The credit reporting agencies are then notified through Social Security. Finally, the financial institutions and, often, the County are notified of the decedent’s passing. This happens within 24-48 hours of the decedent’s passing.
When someone has a bank account in just their name without a beneficiary, that account will be “frozen,” and no funds can be deposited or withdrawn. Similarly, the County will put the code “EST” after someone’s name in the County records, indicating that the individual’s estate owns the property versus the individual. Any bank accounts that do not list a beneficiary will need to go through the probate process to transfer the assets out of the estate and into the names of the legal heirs.
If the decedent had a last will and testament or a trust, the court would allow all the assets to be transferred to those individuals (beneficiaries) named in those documents. If the decedent did not have a will or a trust, the court would decide who gets what according to State law. If you do not want state law to dictate who receives your “stuff”, create a Will or a Trust-based plan.
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