Ask the Expert: No will? There's a way

If a person dies without leaving a will, how do his heirs cash checks made out to him or to his estate -- for example, the return of the security deposit on a rented apartment, or a partial refund on auto insurance?

His heirs should ask Surrogate's Court to name one of them as the administrator of the estate. Like an executor, the administrator locates the decedent's assets, pays his outstanding bills, distributes the remaining assets to his heirs and files his last tax return.

The court will give the administrator "letters testamentary" authorizing her to act for the estate. She presents this legal document and a copy of the decedent's death certificate at the bank and opens an account in the name of the estate -- the account For the Estate of Engelbert Smith, for example. She can then endorse checks made to Engelbert or to his estate and deposit them into the account, and write checks on that account to pay the estate's expenses. (These include the cost of the funeral. If the administrator has already paid for it, she can draw on the estate's account to reimburse herself.)

When a person dies with no will, state intestacy law determines who gets his assets. New York law says after the bills are paid, the first $50,000 goes to Engelbert's surviving spouse and the remainder is divided between his spouse and his children. If there's no surviving spouse, the children get everything. But there's an exception for assets with named beneficiaries. For example, Engelbert's life insurance policy and Individual Retirement Accounts go to the named beneficiaries, even if they aren't members of his family.

The bottom line The administrator or executor of an estate has the authority to open a bank account in its name.

Websites with more information bit.ly/PGpA61 and bit.ly/RD2H78