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Home >> Special Situations >> Deceased Individuals
Proper Procedure to Pay for After-death Expenses
My mom passed away leaving no way to cover burial expenses, bills, etc. I am the executor and sole beneficiary. She gave me her bank card and PIN before she died, and I'm to use them as I see fit. I do not believe this is legal, but I really don't know. I'm told by another person, who does not know, that I'm to take the Will and a copy of the Death Certificate to the bank, and funds will be released to me in thirty to forty-five days. The catch is, there is no money available for her final expenses other than that. I'm tempted, as I'm the executor and sole beneficiary, to just use it as mine anyway. I just don't know. What should I do?
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 If there is a law in your state that allows a next of kin to obtain payment from an account of a deceased depositor (if the account balance is below an amount stated in the legislation), you can ask the bank to make such a payment if you provide documentation of her death and that you are her daughter. Your status as the named executor in the Will won't get you anywhere unless the Will has been probated, which we assume you have not yet done because of the costs of doing so.
Your state may also allow the bank to pay those final expenses directly from the account. You should bring a copy of the unpaid bill, just in case that's a route the bank will be willing to take.
If any of the funds in the account are from a Social Security payment that your mother did not qualify for, be prepared to repay it to the Social Security Administration, which will come looking for it. That's the legally correct way to go.
Sometimes, particularly in situations in which a surviving family member is the nominated executor and the sole beneficiary, the funds are withdrawn by that family member after the depositor's death. Legally, that's wrong and you should not take that option.
Published on BankingQuestions.com 5/19/10
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