If there is no will, then state probate law dictates the settlement of the estate. The CD is part of the estate.

In my state I think $100k is the lower limit for requiring probate if the money is not willed. That $100k numbers includes all assets not willed and that includes cars, boats, collections, property, furniture, iow everything owned by the deceased.

Then the state determines the distribution of those assets in probate. But the probate process does cost money and court time so it is best to have a will, and/or trust, covering enough assets to get you below that probate number. And that dollar limit number to avoid probate can vary state to state.

It becomes part of the estate.
If no will has been left, everything goes into Probate Court and awarded equally to first of kin. This can eat up some bucks.

If a will is left it usually includes all personal assets and the terms of the will are followed.

This is just my experience with having wills prepared.

I am not an attorney.

The government can’t take any unless taxes are owed by the estate.

It becomes part of the estate of the parent and will be distributed in accordance with his/her will.

If there are no beneficiaries on the account it is determined by state law. Most likely it would go to the children.