Disclaimer: This article is for informational purposes and does not constitute legal advice. Consult a qualified attorney for advice specific to your situation.
Detailed Answer
When someone dies holding assets in bank accounts, these funds become part of their estate. To lawfully access and withdraw money during probate in Indiana, follow these steps:
- Determine if you can use a small estate affidavit. If the decedent’s personal property, including bank accounts, totals $50,000 or less, you may qualify for a small estate affidavit under Indiana Code 29-1-8. This streamlined process lets an heir collect assets without full probate if no will exists or no personal representative has been appointed.
- Open probate and appoint a personal representative. File a petition with the local probate court in the county where the decedent lived. The court will appoint a personal representative (formerly called executor or administrator) under Indiana Code 29-1-7-2. The representative handles estate affairs, including bank accounts.
- Obtain Letters of Administration. After appointment, the court issues Letters of Administration (proof of authority) under Indiana Code 29-1-7-3. Provide these letters to the bank; they serve as official permission to access accounts.
- Present documentation to the bank. Take the Letters of Administration, a certified death certificate, and identification to each financial institution. The bank will freeze the decedent’s accounts until it reviews the documents.
- Settle debts and expenses. The personal representative uses estate funds to pay valid creditors, taxes, funeral costs, and administrative expenses. Indiana Code requires notification of creditors (IC 29-1-14). Keep records of all transactions.
- Distribute remaining funds. After settling liabilities, distribute the balance according to the will or Indiana’s intestacy laws (see Indiana Code 29-1-2). Transfers may require additional court approval or receipts from beneficiaries.
Helpful Hints
- Keep original court documents and multiple certified death certificates—banks often require more than one copy.
- Identify all bank accounts early, including joint accounts; joint survivors may avoid probate.
- Confirm small estate thresholds annually; statutes can change.
- Obtain a bond if the court requires it; a bond protects beneficiaries from mismanagement.
- Stay organized: maintain a ledger of deposits, withdrawals, and distributions.
- Consult an attorney if the estate includes complex assets or disputes.