What Happens to a Person's Bank Account When They Die Without a Will?

Unfortunately, when someone passes away without a will (intestate), their loved ones have no direct say in how their assets, including bank accounts, are distributed. Instead, the estate is settled according to provincial intestacy laws, and the deceased’s wishes are not considered. Understanding how bank accounts are handled under these circumstances can help families navigate the legal process.

Are Bank Accounts Automatically Frozen?

Yes. When a person dies without a will, their bank accounts are typically frozen until the estate is legally settled. This means that:

• No one can withdraw funds from the account, including family members, unless they are joint account holders.
• Pre-authorized payments (e.g., mortgages, subscriptions, utility bills) will continue unless the financial institution is notified.
• Direct deposits, such as pensions or government benefits, may continue but must be reported to the issuing authority to avoid overpayments.

To learn more about handling a deceased person’s finances, visit the Government of Canada – What to Do When Someone Dies.

Who Controls the Deceased's Bank Account?

Since there is no will, the deceased’s estate must go through the provincial probate process, and a court will appoint an estate administrator (also called an administrator of intestate estate). This is usually the deceased’s next of kin, such as a spouse or adult child, but if there is a dispute, the court will decide.

For provincial probate rules, visit:

• Alberta – Wills and Inheritance Without a Will
• British Columbia – Intestacy and Estate Administration
• Manitoba – Intestate Succession
• New Brunswick – Probate Without a Will
• Newfoundland and Labrador – Estate Administration Without a Will
• Northwest Territories – Probate and Estates
• Nova Scotia – Intestate Estate Administration
• Nunavut – Estate Administration
• Ontario – Estate Administration Without a Will
• Prince Edward Island – Intestacy Laws
• Quebec – Wills and Intestate Succession
• Saskatchewan – Probate and Estate Settlement
• Yukon – Estate Administration

How Are Bank Accounts Distributed?

Once an estate administrator is appointed, the bank accounts will be distributed according to intestacy laws in the deceased’s province or territory. Generally, funds are distributed as follows:

1. Joint Accounts

• If the deceased held a joint bank account with a spouse, partner, or family member, the account typically transfers automatically to the surviving account holder.
• Joint accounts often have rights of survivorship, meaning the funds bypass probate.

2. Individual Accounts

• If the deceased held an account in their sole name, the funds become part of the estate.
• The appointed administrator must use estate funds to pay outstanding debts, taxes, and funeral expenses before distributing remaining funds to heirs.

3. Named Beneficiaries on Bank Accounts

• Some financial institutions allow customers to designate a beneficiary for certain accounts (e.g., RRSPs, TFSAs, life insurance policies).
• If a beneficiary is named, the funds bypass probate and go directly to the designated recipient.

For more information on intestacy laws and financial accounts, visit the Canadian Bar Association – Estate Law.

What Should Family Members Do?

If a loved one passes away without a will, family members should:

1. Notify the bank of the death and request an account freeze to prevent unauthorized transactions.
2. Obtain a death certificate from the provincial vital statistics office.
3. Determine if probate is required and apply to become the estate administrator.
4. Settle outstanding debts and taxes before distributing funds to beneficiaries.
5. Close the bank account once all financial matters are resolved.

For further legal guidance, consult a probate lawyer.

Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Please consult a qualified professional for assistance with estate administration.