When someone dies, their bank accounts typically become part of their estate and must go through probate before heirs can access the funds. This process can take six to nine months on average, creating significant hardship for families who need money for final expenses. Understanding how different account structures affect inheritance is crucial for estate planning.

Accounts with payable-on-death beneficiaries bypass probate entirely, transferring ownership immediately to the named person. Checking accounts, savings accounts, and certificates of deposit can all have beneficiaries designated. Joint accounts usually include right of survivorship, allowing the surviving account holder to automatically inherit all funds regardless of who deposited the money.

Without a beneficiary or joint owner, accounts freeze during probate proceedings. The court reviews the will's validity and determines asset distribution based on state laws if no will exists. Surviving spouses typically receive priority, followed by children and other relatives. FDIC insurance continues for six months after death, covering up to $250,000 per institution, but heirs should be aware of coverage limits when inheriting accounts.