What To Do With Undeposited Checks After Someone Dies.

It is rather common to come across checks that were issued right around when a loved one passes away. The question is what to do with those checks.

If probate will be opened, then you will need to inventory those checks and deposit them into the estate checking account as part of probate. This can be done after the court has ordered probate and appointed a personal representative of the estate. Checks do have an expiration date so you may have to ask the issuer of the checks to reissue the checks after probate has been formally opened.

Another option is to deposit the checks directly into the decedent's existing checking account. Let's say you have a check for a small amount ($100) and the bank is unaware that the decedent has passed away. You could write the words "for deposit only" on the back of the check with the account number and either hand it to the teller at the bank or drop it in an express deposit box. If the checking account has a transfer on death beneficiary then all of the funds in the checking account will go to the named beneficiary.

If the estate will be handled by a Trust, you will want to open an estate checking account through the Trust and deposit it there.  The Trust will instruct who the estate beneficiaries are.

If there is no Trust and no probate will be opened, you will still have to open an estate account. You can do this via a small estate affidavit as allowed by California Probate Code Section 13100, et. seq. as carefully described in this pamphlet by Los Angeles County Superior Court.

In reality, it is best to wait a while before informing the banks where your loved ones had accounts that he or she has passed away. Most banks and other financial institutions will block any further account activity even if it is a joint tenancy account once they learn that an account holder has died.  Note that depositing a check in a joint tenancy account is really depositing it into the surviving joint tenant's account. This is because the surviving joint tenant now owns the account.

Each situation is really fact dependent so be sure to consult with an attorney if you have questions.