Administrator Responsibilities: What About Bank Accounts?

Mar 18, 2026

When someone dies without a will, the probate court designates an adult next of kin, such as a spouse, child or sibling, to take responsibility for closing out the affairs of the deceased. This person is typically referred to as an administrator and is required to be bonded for the protection of creditors and beneficiaries. Following probate protocols, administrators must inventory the assets of the deceased, notify creditors, ensure debts are paid, and then oversee the distribution of remaining assets following the laws of intestacy. What happens to funds left in bank accounts as this probate process unfolds? Read on for pointers about how administrators can best handle bank accounts, and other important responsibilities that land on their shoulders.

Banks Accounts and The Probate Process Explained

Simply put, probate is the public process of sorting the debts and assets of the deceased, with the associated obligations falling to the court designated administrator. Debts must be paid before assets can be distributed to next of kin, following the sequence laid out in state-specific intestate succession laws. In many families, a home whether fully or partially paid off, is the primary asset at death, and becomes a big responsibility for the administrator, who will likely need to arrange for appraisal and sale, with the proceeds paying off the mortgage and taxes before any money can be distributed to heirs.

What about funds left in a bank account when someone dies without a will? Like most of the matters that must get sorted out, the answer depends on decisions the deceased had previously made (or neglected to make). For example, it’s common for many households to manage finances via joint bank accounts, which make it efficient for more than one person to access and manage money without needing permission for each transaction. Assuming a joint account is established with a “right of survivorship provision,” upon the death of one account holder, the funds bypass probate, and go straight to the other account holders. The Golden Rule Law Group explains that whether or not funds in joint bank accounts are subject to probate depends on whether the account has a right of survivorship or a “tenancy in common” provision:

Joint bank accounts…are usually not subject to the probate process. This is due to a provision known as the “right of survivorship,” which is common in joint ownership situations. Under the right of survivorship, when one account holder dies, the assets in the joint account automatically pass to the surviving account holder, bypassing the probate process.
‍However, there are some circumstances where a multi-party bank account may have to go through probate….A “tenancy in common” is a type of co-ownership in which each party owns a separate and distinct share of the property (in this case, the bank account), which they can sell, give away, or leave to someone in their will. Unlike the right of survivorship, if one owner dies, their share doesn’t automatically pass to the surviving owner(s). Instead, the deceased party’s share of the account becomes part of their estate and would be subject to probate.

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In the event the bank account of the deceased was not a joint account, the funds in it can still bypass the probate process—-assuming named beneficiaries had been listed on the account. Attorneys at King Law Offices share these pointers to help administrators understand the protocols for funds left in bank accounts:

How a deceased person’s bank account will be treated after they pass will depend on how they owned the bank account as the account owner….When a person dies, their bank accounts may either transfer directly to a joint account holder or a named beneficiary, or they will go through probate for distribution according to the will or state law.

If a bank account has no joint owner or designated beneficiary, it will likely have to go through probate court….The bank account funds will then be distributed—after all creditors of the estate are paid off—according to the terms of the will made by the account holder.

- Having access to the death certificate will help demonstrate that a survivor’s claims are accurate, and banks generally require beneficiaries to present them before withdrawing money from any individual account is permitted.

Although joint accounts can seem like an easy way to ensure funds are expediently available to loved ones, attorneys at Sands Anderson advise caution: claims made against joint owners can put the funds at risk, and discrepancies between bank account provisions and plans left in wills or trusts can result in family conflict and confusion. Establishing a power of attorney, and carefully creating and communicating about a will and or trust are generally the wisest moves for families hoping to head off extra stress and confusion amidst grief.

Good To Know: What Is An Administrator Bond?

Once appointed, administrators take on legally binding fiduciary obligations: they must take better care of the assets put in their trust then they do even of their own money. To ensure these duties are handled honestly and accurately, courts often require administrators to obtain a type of fiduciary bond, known as an administrator bond. (State nomenclature differs, so sometimes the fiduciary may be referred to as a personal representative, and required to obtain a personal representative bond. Estate bonds, probate bonds and surrogate bonds are also terms that may be used.)

Essentially, an administrator bond provides peace of mind to the court, beneficiaries, and creditors, guaranteeing that assets are secure until the affairs of the deceased are officially closed out. In other words, administrator bonds serve as a financial safeguard, ensuring the designated fiduciary manages the assets honestly, responsibly, and in accordance with all court directives and state law. As attorney Daniel Antonelli sums up: “An Administrator’s bond…guarantees the proper administration of an estate….an Administrator is usually required to post a bond before he or she qualifies to receive the appointment (also known as being granted Letters of Administration)….Bonds protect estate beneficiaries and creditors from the negligent and intentional acts of fiduciaries that cause harm to the estate.”

Administrator bonds are legally binding, three-party contracts. The Surety guarantees to the Obligee (the Court on behalf of beneficiaries and creditors) that the Principal (the administrator obtaining the bond) will comply with all applicable laws and standards. If the Principal causes financial harm by failing in their duties, the Surety compensates the injured parties, up to the bond’s value.

The bond amount and specific bond terms for administrators are usually set in court by the judge or a court clerk.The amount of the bond is determined based on the circumstances of the estate, and the value of the assets being protected, as well as the probate protocols of the state.

Colonial Surety Company makes it easy to secure administrator bonds and other types of bonds, such as personal representative, surrogate, probate and estate bonds, that meet the exact, state-specific requirements of courts in every state and U.S. territory. As a national, direct, and digital writer, Colonial Surety Company makes obtaining administrator, estate, fiduciary, probate, and personal representative bonds quick and easy:

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