Legal-Ease: What Happens to a Family Member's Bank Account After Death?

Dear Jonathan: My father, a widower, passed away a couple of months ago. Being his only child, he appointed me as his agent on his durable power of attorney so that I can handle his bill paying which I have been doing for the past two years.

After his death I went to the bank to transfer the remaining funds in that account to my own account; but the bank manager said the account was frozen due to my father’s death. I told him that I was my dad’s agent, that I had been accessing the account successfully for over two years and gave him a copy of the durable power of attorney. He said none of that mattered anymore since my father had died. Is that true? If so, how am I supposed to get the money out of my dad’s bank account?

Jonathan: The bank manager is correct in that a durable power of attorney is only effective and only has legal validity, while the principal is still living. This is because the purpose of a durable power of attorney is to allow the named agent to act on behalf of an incapacitated principal during the principal’s lifetime regarding his or her financial matters, including bill paying. This is exactly what you were doing on behalf of your father. Once your father passed away, however, his durable power of attorney automatically became null and void and as a result, your powers as agent, became null and void as well.

Regarding the bank account, since the bank manager stated it is now frozen, I can only assume that there isn’t a beneficiary named to receive the funds in that account upon your father’s death. Consequently, it appears that some type of probate proceeding will need to be initiated to gain access to that account. I recommend that you meet with a probate attorney, who can review this with you in more detail and if probate is required, explain what needs to be done to probate your father’s estate.