Georgia State Board of Funeral Service Practice Exam

If a deceased person had a bank account balance of $10,000 or less and died intestate, who may receive the proceeds?

1. The financial institution

2. The state

3. Surviving next of kin

4. Any family member

The correct answer is: Surviving next of kin

When a deceased person has a bank account balance of $10,000 or less and dies intestate (without a valid will), the distribution of the funds typically follows intestacy laws which prioritize the surviving next of kin. These laws vary by state, but they generally favor individuals who are closely related to the deceased, such as spouses, children, parents, and siblings. In this scenario, the surviving next of kin would be entitled to receive the proceeds from the bank account, as they are recognized by law as having a rightful claim to the deceased's assets in the absence of a will. This process might involve the next of kin presenting proof of the relationship and fulfilling any necessary requirements stipulated by the financial institution or state laws. The other options do not provide a claim to the funds in this case. The financial institution is not a party that inherits or receives the proceeds. The state may only take possession of assets if no rightful heirs can be determined, which is not applicable here since the next of kin exists. Additionally, while family members may be related to the deceased, not all family members would necessarily qualify as next of kin under intestacy laws, which again underscores why the specific designation of 'surviving next of kin' is important.