Yes. It is legal. But it WILL get reported and I would behoove the person to have some good records on hand.
And then this happens: https://www.nationalreview.com/2015/11/policing-for-profit-police-seize-assets-to-pad-budget/
A snip:
The report’s catalog of wrongs will stand your hair on end. There’s the police department in Tenaha, Texas, that routinely stopped and searched out-of-state vehicles based on flimsy pretext and confiscated valuable property, all the while threatening to file charges if drivers refused to consent to seizure of their property.
There’s the family-owned Motel Caswell, which was seized by the federal government because it was supposedly a hot spot for drug activity, even though several nearby properties had a similar frequency of drug activity. The only difference between the hotels appeared to be that the government didn’t think Motel Caswell would put up a fight. There are numerous examples of parents who lost houses or cars because children, unbeknownst to their parents, used the property to deal drugs.
And then there are the cases in which the IRS or another agency, based on next to nothing, simply seized a personal or small-business bank account under suspicion of “structuring,” a crime that requires proof of intent to evade federal anti-money-laundering laws. Getting the seized money back costs time and legal fees. While these owners wait for justice, their businesses fail, their families struggle, and no criminal prosecution ever comes.
The bank teller is actually supposed to inform you.
A tip for those cleaning out grandma’s home: If you come across a cash horde before you do anything with it, go to YOUR bank and speak with a manager. Explain the situation in general terms and do not bring the cash with you.
They can walk you through the process. If Grandma lives in a state where you don’t have an account, do the same thing where Grandma has her accounts. You may need to open an account at that bank. If you are not a legal rep of the person. Just having a death certificate is not enough.
If Grandma is still alive SHE has to do this.
Or just use the cash as cash. In another case I just collected up the $5k or so and used it for gas and groceries. $5k isn’t going to get you in trouble though.