When a bank account holder passes away, the financial institution freezes the account or restricts outgoing transactions as soon as they receive formal notification and a certified death certificate. If the account was held jointly with a surviving co-owner with rights of survivorship, ownership typically transfers directly to the survivor. If the account belonged solely to the deceased person without a designated payable-on-death beneficiary, the funds become part of the deceased's estate and must go through the legal probate court process. During probate, the appointed executor or personal representative uses the account funds to pay off outstanding debts and taxes before distributing the remaining inheritance to rightful heirs according to a will or state intestacy laws.