How is the money in a deceased person’s account handled?
Reader Minh Chau (Quang Binh) asks: A relative of mine has recently passed away, and there is still money in their bank account. What steps does the family need to take to claim this money? Will the money in the account be lost or confiscated by the bank?
Banking Times would like to thank you for your question. Here is our advice:
The money in the account remains the property of the deceased
When the account holder passes away, the funds in a checking or savings account are not lost and do not become the property of the bank. According to the Civil Code, these funds are the property of the deceased and are considered part of the estate. To ensure the safety of the assets and comply with legal regulations, the bank will suspend or restrict transactions on the account after receiving notification of the account holder’s death. The bank will only make payments once it has identified the rightful heirs in accordance with the law.
What must heirs do to receive the funds?
Heirs or beneficiaries named in a will must contact the bank where the deceased held an account to complete the procedures for receiving the funds. Depending on the circumstances, the bank may require a death certificate, identification documents, a valid will (if available), or a declaration of inheritance, an estate distribution agreement, and other documents proving the right to inherit in accordance with the law.
After verifying the validity of the documents and confirming the rightful beneficiary, the bank will disburse or transfer the funds in accordance with regulations. If there are multiple beneficiaries, the payment will be made in accordance with the terms of the will or an agreement among the heirs. If a dispute arises regarding inheritance rights, the bank typically processes the payment only after a court judgment, decision, or other legally binding document issued by a competent authority has been obtained.
To ensure a smooth process for receiving funds, the family should proactively notify the bank of the account holder’s death and prepare all necessary documents as instructed. At the same time, family members should not use the deceased’s ATM card, online banking password, or other electronic transaction methods to withdraw or transfer funds without authorization, as the settlement of the estate must comply with legal provisions regarding inheritance.