Probate Problems: Why Accounts Freeze and What You Can Do Now

Losing a loved one is hard enough, but learning that you can’t access their bank accounts or pay bills right away can make a painful time even more stressful. Many families are caught off guard when the legal authority they thought they had suddenly disappears.

What Happens When Someone Dies

Authority From Power of Attorney Ends at Death

A Power of Attorney gives someone authority to act only while a person is alive. The moment someone dies:

• That authority ends.

• Financial institutions no longer recognize the Power of Attorney.

• The deceased person’s estate becomes a separate legal entity.

  
  

This legal shift is why you may be told you need to go through a court process before you can handle finances you once managed.

Why Accounts Get Frozen

When a loved one dies, banks and financial institutions:

• Must protect assets until someone proves legal authority.

• Freeze accounts to stop transactions.

• Require a court‑issued document to release funds or pay bills.

  
  

Immediate Practical Problems

Families often face questions like:

• How do I pay for the funeral?

• What about the mortgage payment?

• How do I pay ongoing bills or insurance premiums?

  
  

Even when money is available, you can’t access it without legal authority—and that leads many families into the probate court system.

The Probate Court Process

When there hasn’t been proper estate planning, loved ones must ask the court for permission to handle the estate. This includes:

• Filing detailed paperwork.

• Paying court fees.

• Waiting for hearings and approvals.

• Possibly hiring a lawyer for guidance.

  
  

What to Expect in Probate

Probate isn’t quick. Families typically experience:

• Delays: The process often takes months, not weeks.

• Costs: Court fees, attorney fees, and accounting expenses.

• Paperwork: Documentation, signatures, and repeated filings.

• Time: Court appearances, waiting for approvals, and legal steps.

  
  

Conflict and Delay

Probate requires notifying heirs and gives them the right to:

• File claims against the estate.

• Dispute how the estate is handled.

• Challenge the distribution of assets.

  
  

These disputes can slow everything down and create emotional stress.

What Happens When the Law Decides

If there’s no will or trust:

• State law determines who inherits.

• Assets are distributed based on legal formulas.

• Sentimental items may be distributed by court order or family negotiation.

  
  

When State Law May Not Reflect Wishes

In complex family situations, such as blended families, unmarried partners, or estranged relatives, the law may:

• Distribute assets in ways that don’t match the deceased person’s wishes.

• Leave family members disappointed or confused.

• Cause disagreements among loved ones.

  
  

The Hidden Emotional Costs

Probate isn’t just legal and financial, it’s emotional too.

Grieving families often:

• Feel overwhelmed by bureaucracy.

• Experience tension among siblings or relatives.

• Worry that they’re not honoring their loved one’s wishes.

  
  

This emotional toll is something numbers don’t capture — and it’s often what families remember most.

A Better Path: Avoiding Probate Delays

The good news? None of this has to happen if proper planning is done ahead of time.

What Proper Planning Can Do

A thoughtful estate plan can:

• Let assets be transferred without probate.

• Give trusted family members authority after death.

• Prevent accounts from being frozen.

• Reduce time, cost, and stress.

  
  

Components of a Good Estate Plan

Consider including:

• A will that clearly states your wishes.

• A trust to hold assets outside of probate.

• Clear instructions on how assets should be distributed.

Designated successor decision‑makers.

Professional Support Matters

Working with an experienced advisor:

• Ensures plans are legally sound.

• Provides clarity for family members later.

• Offers support when decisions become emotional.

Take Action Now

The best time to protect your family is now, while you can make decisions with a clear mind and full understanding. Your loved ones deserve a plan that helps them focus on healing, not paperwork.

📞 Book a free 15-minute discovery call to explore how a Legacy Planning Session protects your whole family.