Son questions $7,000 drop in late mother’s bank account

A man says his late mother’s checking account fell by $7,000 after her death, dropping from $16,000 to $9,000 while he waited for a major bank to release the money.

The son, who wrote to MarketWatch’s Moneyist column and said he is his mother’s only heir, said the bank required a 45-day wait after her death before paying out the proceeds. He also said online access was shut off, while the account’s statements had been delivered electronically, leaving him unable to see the transactions behind the balance change.

MarketWatch columnist Quentin Fottrell said the son’s rights depend heavily on his legal role in the estate. A bank will generally provide account information to an executor or administrator, Fottrell wrote, but it is not typically required to hand over a deceased customer’s transaction history to someone without that authority because confidentiality concerns can continue after death.

Why an account can keep changing

Fottrell said a bank balance does not automatically sit untouched once an account holder dies. Regular payments may continue until the bank receives a death certificate and freezes the account.

Those continuing costs can include phone bills, utilities, rent, mortgage payments and subscriptions such as streaming services, according to the column. Other possible deductions include credit-card debts, overdraft fees, loan interest, funeral costs, unpaid taxes and estate administration expenses.

Fottrell said ordinary bills can add up quickly, but he also said a $7,000 decline over about six weeks should not be ignored. If the son is the executor or administrator, he is entitled to an accounting of probate assets, according to the column.

The column also noted that the Social Security Administration is often informed quickly when a recipient dies. If benefits were deposited after death, Fottrell said, the agency can alert the financial institution and seek to recover those payments.

Probate papers may unlock the records

Fottrell said any power of attorney arrangement ended when the mother died. After that point, a person who had been acting under power of attorney would not have authority to access or withdraw money from the account, according to the column.

To gain access, the estate’s executor or administrator generally must show court-issued letters testamentary or letters of administration, Fottrell wrote. In a small estate, a successor acting under state law may be able to receive the information through a shorter process.

The Lins Law Group in Tampa, Fla., says families often run into this issue after a parent dies. According to the firm, if an account has a co-owner, beneficiary or payable-on-death designation, the transfer may happen without probate after the proper paperwork is completed. Without those arrangements, the bank can require an order from probate court.

Fottrell said a person who suspects improper activity can speak with a branch manager, ask for a written calculation of the balance, contact the lawyer handling the estate or seek help from the probate court. He also pointed to complaints with the Consumer Financial Protection Bureau or a state banking regulator as options.

The column said a small-estate affidavit or summary probate may be faster and cheaper than full probate. Fottrell noted that many states set small-estate limits somewhere between $50,000 and $150,000.

This story draws on original reporting from MarketWatch.