What Happens to a Bank Account After Someone Passes Away? A Florida Law Firm Explains

After the death of a loved one, it's natural to want to help—by paying bills, depositing checks, or managing day-to-day finances. But unless you have the proper legal authority, these actions can cause complications, even when your intentions are good.

One area that often causes confusion is access to the deceased’s bank account. Can someone continue to use it? Can a Power of Attorney still be used to pay bills?

In Florida, the answer is: No—and here’s why.

A Florida-Based Example

Imagine Maria, a Florida resident, passes away unexpectedly. She had a checking account at ABC Bank, with her two nieces, Angela and Sofia, listed as beneficiaries on the account through a payable-on-death (POD) designation. Maria had also signed a Florida Durable Power of Attorney naming Angela to handle her finances if she became incapacitated.

After Maria’s passing, Angela and Sofia find checks made out to Maria and a stack of unpaid bills on her kitchen table. Sofia, hoping to be helpful, takes the checks to the bank and deposits them into Maria’s account. Meanwhile, Angela begins paying Maria’s bills using the checkbook and signs the checks as “Power of Attorney.”

Although well-intended, both actions were not legally permitted.

Understanding Florida Law

Under Florida Statutes Section 709.2109(1)(a), any authority granted under a Power of Attorney ends when the person who created it dies. In this example, Angela’s legal authority to act on Maria’s behalf ended the moment Maria passed away.

Once a person dies, their bank accounts no longer operate under the Power of Attorney. If the account is not jointly owned or designated as payable-on-death, it becomes part of the estate and must be administered through the probate process.

Even if the account has a POD designation, it should not be used for ongoing transactions like paying bills or accepting new deposits. Banks may initially process these transactions if unaware of the death, but once informed, they may reverse or freeze the account to protect the estate and follow legal procedures.

What They Should Have Done Instead

Angela and Sofia should have taken the following steps:

• Locate any will Maria may have created

• Contact a Florida probate attorney to evaluate the next steps

• Allow the probate process to begin so that the court could appoint a Personal Representative
  

Once appointed, the Personal Representative would have the authority to open an estate account, deposit any valid checks made out to Maria, and pay any legitimate debts through a legally proper process.

Good Intentions, Risky Results

Handling finances after someone dies is not as straightforward as it may seem. Even with the best intentions, trying to manage a loved one’s account without legal authority can lead to unintended consequences. Improper use of a bank account or expired Power of Attorney can delay probate, result in reversed transactions, or even trigger liability.

When to Seek Help

If someone close to you has passed away and you are unsure how to proceed, it’s wise to speak with an experienced Florida estate attorney before taking any action.

At The Soto Law Office, we understand how overwhelming things can feel in the days and weeks after a loved one’s passing. We're here to help you take the right legal steps with confidence and care.

Contact us today at (321) 972-2279 or visit www.TheSotoLawOffice.com to schedule a consultation.

Let us help you avoid missteps and move forward with peace of mind.