Georgia State Board of Funeral Service Practice Exam

In the case of no one claiming bank proceeds within 90 days after intestate death, the correct outcome is that the financial institution may cover funeral expenses. This practice allows for the swift handling of essential costs associated with the deceased's final arrangements. In many jurisdictions, banks and trusts have protocols in place to address such situations, ensuring that funeral expenses are prioritized. This provision helps to ensure that the deceased receives a dignified burial or cremation even if family or heirs have not yet taken action regarding the estate.

The other potential choices present scenarios that are less commonly enacted or may vary based on specific state laws. For example, funds being donated to charity does not typically occur unless directed explicitly in a will or trust. While the state may eventually claim unclaimed funds, there is usually a process in place first that allows for necessary expenses, such as funeral costs, to be covered. Lastly, the notion that funds revert to the estate assumes that an estate has been established, which would not necessarily happen immediately after death, particularly in cases of intestacy.

Thus, allowing the financial institution to utilize the funds for funeral expenses is a practical measure that reflects the importance of addressing the immediate needs following a death.