Understanding What Happens to Bank Accounts When Someone Passes Away
One of the most common questions families face after a loved one passes is: “Is money in a bank account considered part of an estate?”
The short answer is: it depends on how the account is titled. Bank accounts may pass directly to a surviving owner or beneficiary, or they may become part of the probate estate. Understanding how your accounts are structured is a key part of planning ahead—and can help your loved ones avoid unnecessary delays, expenses, and stress.
Individually Owned Bank Accounts Are Usually Part of the Estate
If a person owns a bank account solely in their name, with no beneficiaries listed, the account becomes part of their probate estate when they die.
This is the default process, and for many families, it results in delays and added emotional strain.
Jointly Owned Accounts Often Pass Outside of Probate
If the account is jointly owned with rights of survivorship, the surviving co-owner typically inherits the funds automatically.
POD and TOD Accounts Pass Directly to Beneficiaries
Payable on Death (POD) or Transfer on Death (TOD) designations allow accounts to pass directly to named beneficiaries without probate.
Accounts Held in a Trust Avoid Probate Completely
A revocable living trust allows bank accounts to bypass probate entirely while offering enhanced control and privacy.
Why Account Ownership Matters in Estate Administration
Bank accounts may be used to pay estate expenses, debts, and taxes. Estate bank accounts may also be created by a personal representative for administration.
How to Ensure Your Bank Accounts Are Handled the Way You Want
A clear estate plan ensures your bank accounts:
- Go to the right people
- Avoid probate delays
- Stay protected
- Remain accessible when your loved ones need them
When to Seek Legal Guidance
Welter Law helps Florida families:
- Identify which assets are subject to probate
- Add beneficiaries appropriately
- Determine whether a trust is appropriate
- Create personalized estate plans
Florida Bar Disclaimer: This information is for general informational purposes only and is not intended to be legal advice. Contacting us does not establish an attorney-client relationship. The hiring of a lawyer is an important decision that should not be based solely on advertisements. Before you elect to retain Welter Law, you may request to obtain free written information about our qualifications and experience.
