If a loved one has passed away, you may be wondering, “Do joint bank accounts go through probate?” The answer depends largely on how the account was titled and whether it included survivorship rights.
In this guide, CC LawGroup, A Professional Corporation, explains what can happen to a joint account after one of the owners dies. Our probate lawyers in Newark, CA, can help you review your account documents and understand the next steps.
What Happens to a Solely Owned Account?
A bank account held in one person’s name without a designated beneficiary generally becomes part of their estate assets after death. The bank may restrict access once it receives notice of the account holder’s death. The estate’s value and eligibility for simplified procedures determine whether formal probate is required.
How Joint Bank Accounts Transfer After Death
Joint bank accounts with a right of survivorship generally pass directly to the surviving owner rather than becoming part of the deceased person’s probate estate. This is why families often ask, “Do joint bank accounts go through probate?” because the surviving owner can usually continue accessing the funds after providing the documentation required by the bank.
However, not every jointly titled account includes survivorship rights, so the account agreement should be reviewed carefully. It’s important to note that adding a joint owner gives that person access to the funds during the original owner’s lifetime. This consequence should be considered before using joint ownership as an estate-planning strategy.
Understanding the Probate Process
The probate process determines how certain assets are handled after someone dies. The court uses this time to confirm any will and authorize a personal representative to manage the estate. Outstanding obligations are then addressed before the remaining property is distributed to beneficiaries or heirs.
Probate can take several months or longer, depending on the estate and any disputes that arise. Understanding this process explains why accounts with valid survivorship rights or beneficiary designations can often transfer more efficiently.
Using a POD Designation To Avoid Probate
A payable-on-death (POD) beneficiary designation lets someone name a specific person to receive assets after they die, without giving that person any access to the funds beforehand. A few points are worth keeping in mind when considering this tool:
- Access: POD beneficiaries gain rights only after death; joint owners have immediate access.
- Creditors: A joint owner’s creditors may reach the account, while a POD beneficiary’s creditors generally cannot access it during the owner’s lifetime.
Choosing between a POD and a joint owner structure often comes down to how much access you want to give someone while you are still living.
Get Guidance on Joint Account Transfers
Now that we have answered the question, “Do joint bank accounts go through probate?” it is important to review how your accounts are titled. Accounts with valid survivorship rights generally transfer directly to the surviving owner. Choosing the right executor can help ensure remaining estate assets are managed properly.
Call CC LawGroup, A Professional Corporation, at (510) 818-0000 for estate planning and probate assistance in Newark, CA.
