Handling a loved one’s financial affairs after their passing can be overwhelming, especially when it comes to accessing their bank accounts. If you’re a Missouri resident dealing with this situation, you’re likely wondering about the proper steps to claim these accounts while following state laws.
In this comprehensive guide, we’ll walk you through the various methods available for accessing a deceased loved one’s bank account in Missouri, from the simplest scenarios to those requiring full probate administration.
Understanding Your Situation: Three Main Ways to Claim a Bank Account
In Missouri, there are three primary ways to claim a deceased person’s bank account, each depending on how the account was set up and its value. Let’s explore each option:
1. Joint Ownership: The Simplest Scenario
If you were a joint owner of the account (not just an authorized user), the process is straightforward. As a joint owner, you automatically retain full ownership of the account upon the other owner’s death. This is known as the “right of survivorship.” See RSMo. 362.470 (banks and trust companies) and 369.147 (savings and loan associations).
Important distinction: Being an authorized user is not the same as being a joint owner. Authorized users lose their access rights when the primary account holder passes away.
2. Transfer on Death (TOD) Beneficiary
If you’re listed as a Transfer on Death beneficiary, the account becomes yours after all account owners have passed away. (RSMo. 362.471, see also Chapter 461, et seq). This designation allows the account to bypass the Missouri probate process entirely, making it one of the most efficient ways to transfer bank accounts after death.
To claim the account as a TOD beneficiary, you’ll typically need to provide the bank with:
- A certified copy of the death certificate
- Valid photo identification
3. Probate Requirements
If there’s no joint owner or TOD beneficiary, the account must go through probate. However, Missouri offers several probate options depending on the estate’s value:
Small Estate Affidavit (Under $40,000)
For estates valued under $40,000, Missouri law allows for a simplified process using a small estate affidavit. This document, authorized under Missouri Statute § 473.657, allows rightful heirs to claim assets without going through full probate administration.
Refusal of Letters Applications
In some cases, spouses, minor children, and creditors of the estate can also claim the bank account if it is small enough, depending on the county.
Spouses and minor children can typically claim an account if the total estate value (including the account) is under $20-24,000, while creditors may only claim if (1) there is no spouse or minor child, AND (2) the total estate value is under $15,000.
This is done through what is called a Refusal of Letters application. In some counties, you can even file this without a lawyer.
Full Probate (Over $40,000)
For larger estates, full probate may be required. This process typically takes about a year.
However, under Missouri Statute § 473.663, if no estate administration has occurred within one year of death, interested parties can petition the court to determine rightful heirs and their estate interests in what is called a Determination of Heirship action, which is a type of short-form probate proceeding.
Steps to Claim the Account Through Probate
If probate is necessary, here’s what you’ll need to do:
- File the appropriate petition with the probate court in the county where your loved one resided OR where the account is located
- Obtain either Letters Testamentary or Letters of Administration (in full probate) or the final probate court order (in a short-form probate proceeding like a Small Estate, Refusal of Letters, or DOH matter)
- Present these documents to the bank along with a certified death certificate
- Follow the court’s instructions regarding estate administration and distribution
Understanding probate timelines in Missouri is crucial, as the process can take several months to complete.
Common Challenges and How to Address Them
Several challenges may arise when claiming a deceased person’s bank account:
Multiple Beneficiaries
When multiple beneficiaries are involved, coordination becomes essential. All named beneficiaries must typically provide proper documentation to access their share of the account.
Creditor Claims
Under Missouri law, creditors have six months from the date of the first published notice to file claims against the estate. This can affect how quickly funds can be distributed. In fact, it is the creditor filing timeline that typically requires full administration to take so long.
Documentation Issues
Banks may require specific documentation beyond what you initially provide. Common requirements include:
- Multiple certified copies of the death certificate
- Court orders
- Tax clearance letters
- Affidavits of heirship
Talk with this specific bank to understand what they will require of you.
Planning Ahead: Avoiding Probate for Bank Accounts
To make things easier for your loved ones, consider these steps for your own accounts:
- Designate TOD beneficiaries on all eligible accounts
- Consider establishing a living trust
- Keep accurate records of all accounts and beneficiary designations
- Review and update beneficiary designations regularly
When to Seek Legal Help
While some situations may be straightforward, consider seeking legal assistance if you do not qualify for a Refusal of Letters application. In most Missouri counties, a lawyer is required, even in Small Estate proceedings. Check with the probate clerk for the county where you will be filing to find out more.
Conclusion
Claiming a deceased loved one’s bank account in Missouri doesn’t have to be overwhelming. By understanding your situation and following the appropriate legal pathway—whether through joint ownership, TOD beneficiary status, or probate—you can navigate this process effectively.
Remember that proper estate planning, including the use of beneficiary designations and trusts, can significantly simplify this process for your own loved ones in the future. If you’re facing challenges or uncertainty, don’t hesitate to seek professional legal guidance to ensure you’re taking the appropriate steps according to Missouri law.
