Losing a loved one comes with many responsibilities, and handling their financial matters can be one of the most confusing. A common question that arises is: Can you cash a deceased person’s check?
The short answer is no, you cannot legally cash or deposit a check written to someone who has passed away. Whether it’s a tax refund, pension payment, or personal check, understanding the rules around cashing or depositing it is crucial. However, there are proper legal steps you can take to ensure those funds are distributed correctly.
Why You Can’t Cash a Deceased Person’s Check
When someone dies, their financial accounts, including their checking account, are typically frozen until the estate is settled. Attempting to cash or deposit their check without going through the proper channels can be considered fraud.
Instead, any money owed to the deceased is handled through the estate’s executor or administrator. This ensures that any outstanding debts, taxes, or obligations are handled correctly before money is distributed to heirs or beneficiaries.
The Role of the Estate
When someone passes away, their estate, managed by an executor or administrator, becomes responsible for handling all financial matters. This includes:
- Depositing or returning checks issued in the deceased’s name.
- Settling debts before distributing remaining funds.
- Following state probate laws to ensure fair distribution.
If you receive a check for the deceased, the proper step is usually to forward it to the estate’s bank account, which is often set up specifically for this purpose.
Special Situations
There are a few exceptions where handling a deceased person’s check may differ:
- Joint Accounts: If the deceased shared a joint checking account with a spouse or family member, the surviving account holder may be able to deposit the check directly.
- Government Checks: Agencies like the IRS or Social Security Administration typically require checks to be returned and reissued to the estate or eligible survivor.
- Small Estates: Some states offer simplified probate procedures that make it easier to access smaller sums without a lengthy court process.
What to Do with a Deceased Person’s Check
If you’ve received a check made out to someone who has passed, here are some appropriate steps:
- Contact the Issuer: Reach out to the bank, business, or government agency that issued the check. Often, they can reissue the payment to the estate.
- Work with the Executor: If you’re the executor of the estate, you can open an estate account to deposit checks payable to the deceased. From there, funds are distributed properly.
- Government Checks: For Social Security or tax refund checks, contact the relevant agency. For instance, the IRS can reissue tax refund checks in the name of the estate. Planning ahead for situations like this is one reason to prepare early for tax season.
- Seek Legal Advice: Especially with large amounts, consulting an attorney ensures everything is handled properly.
Preparing for Future Situations
Tax refunds are a common example of checks that may still arrive after someone’s passing. If this happens, the refund will need to be claimed through the estate. Planning during the tax season and having a financial strategy for refunds can make this process easier.
Keeping Your Own Finances in Order
While handling a loved one’s estate, it’s also a good time to review your own financial habits. Make sure you have an updated will, a designated executor, and organized records, including your personal checks and business checks. Having the right checks on hand not only keeps your finances in order but also ensures your loved ones won’t be left with unnecessary complications.
At CheckWorks, we make it simple to order high-quality, secure personal checks and business checks that fit your needs.
Moving Forward with Confidence
You cannot personally cash a deceased person’s check, but you can take the correct legal steps to ensure the funds are properly handled through the estate. By planning ahead and keeping your financial affairs organized, you can ease the burden on loved ones during difficult times.
