Accounts Of Deceased Nonresidents - Savings Operations - Financial - CA

Section § 6950

This law explains what happens to a savings account in a California bank when someone dies living in another state or country. First, if the deceased was living in another state or nation, their account isn’t subject to California taxes. Second, if they were living in another U.S. state, the money in their account can be given to that state's representative managing their estate, as long as the right paperwork and proof of ownership is provided. Finally, once the bank or association gives the money to the out-of-state representative using the right documents, the bank is free from any responsibility as if they gave it to a local representative.

(a) When a savings account is held in any association or federal association by a person who dies while domiciled in a sister state or foreign nation, the account, together with additions and interest, or any part of it, shall be exempt from any taxation otherwise imposed by this state.

(b) When a savings account is held in any association or federal association by a person who dies while domiciled in a sister state, the account, together with additions and interest, or any part of it, shall be paid to the sister state personal representative or other claimant under the Probate Code, provided the personal representative or other claimant has furnished the association or federal association with all of the documentation required under applicable provisions of the Probate Code and evidence of ownership of the account, if any, issued under Section 6652.

(c) Upon payment or delivery to the personal representative or other claimant after receipt of the documents specified in subdivision (b), the association or federal association is released and discharged to the same extent as if the payment or delivery had been made to a legally qualified local personal representative, and is not required to account for the application or disposition of the property.

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