The Short Answer

In Pennsylvania, money in a deceased person’s bank account does not just “disappear” if no one claims it—but it also does not sit at the bank forever. If there is no one stepping forward through probate (or another valid transfer method), the funds may ultimately be turned over to the Commonwealth to be held in a custodial capacity, where eligible claimants can later seek a refund.

Which path applies depends on how the account is titled (joint, payable-on-death, trust/Totten trust, or solely owned) and whether there is an estate opened to collect and distribute the funds.

What Pennsylvania Law Says

When a bank account is solely in the decedent’s name (no joint owner and no payable-on-death beneficiary), it is typically an estate asset. If no one administers the estate and the funds remain unclaimed, Pennsylvania law provides mechanisms for funds to be paid into the State Treasury and held subject to later claim in appropriate circumstances.

The Statute

The primary law governing this issue is 20 Pa.C.S. § 3540.

This statute authorizes the Orphans’ Court to direct that certain distributions that cannot be made (for example, when an heir/beneficiary cannot be located) be converted to money and paid into the State Treasury to be held in a custodial capacity, subject to refund upon a proper claim and court order.

Separately, Pennsylvania also has an “unclaimed property” framework (commonly called escheat/custody by the state). Pennsylvania law recognizes time limits for actions involving escheat/payment into the State Treasury. See, for example, 42 Pa.C.S. § 5528 (limitations period for certain escheat-related actions).

If your situation involves a small amount and the right family member is available, Pennsylvania also allows limited payments from deposit accounts without full administration in some cases, but the details and eligibility can matter a lot. (Related reading: What documents do I need to claim unclaimed property for an estate in Pennsylvania?.)

Why You Should Speak with an Attorney

Even though the general concept is straightforward (unclaimed funds may end up with the Commonwealth), the real-world outcome often turns on details that can create delays, denials, or family disputes. Legal outcomes often depend on:

• Strict Deadlines: Time limits can apply to claims and related actions, including escheat-related limitations rules. See 42 Pa.C.S. § 5528.
• Burden of Proof: You may need to prove your legal relationship to the decedent, your entitlement under a will or intestacy, and the account’s ownership/beneficiary designation—especially if the account was joint, POD, or disputed.
• Exceptions and account titling issues: Joint accounts, payable-on-death designations, and other “non-probate” transfers can change who is entitled to the money and whether probate is required at all. If the account is treated as an estate asset, the Orphans’ Court process and creditor/tax issues can also affect distribution.

Trying to handle this alone can lead to a bank refusing to release funds, a claim being delayed or denied, or an avoidable dispute among family members. A Pennsylvania probate attorney can quickly identify the correct path (probate vs. non-probate vs. unclaimed property) and help you present the right proof the first time.

If you’re trying to locate accounts or confirm whether funds were turned over to the state, you may also find these helpful: How do I find my deceased spouse’s bank accounts and assets in Pennsylvania? and How can heirs find and claim a deceased relative’s unclaimed property in Pennsylvania?.

Get Connected with a Pennsylvania Attorney

Do not leave your legal outcome to chance. We can connect you with a pre-screened Probate attorney in Pennsylvania to discuss your specific facts and options.

Find a Pennsylvania Attorney Now

Disclaimer: This article provides general information under Pennsylvania law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.