Who Gets My Bank Account When I Die?

When someone passes away, one of the most immediate concerns their loved ones face is gaining access to financial accounts. If you've ever wondered “Who gets my bank account when I die?”—you’re not alone. The answer depends on several factors, including how the account was set up, whether there is a joint owner or named beneficiary, and if there's a valid will or estate plan in place.

At McCammon Law, P.C., many people come to us after searching for a probate lawyer near me—usually when a loved one has passed and they’re left trying to figure out what to do next. Understanding how bank accounts are handled after death can help you make better decisions now and ease the burden on your family later.

What Happens to Bank Accounts After Death?

When a person dies, their bank accounts don’t automatically transfer to family members. In fact, without proper planning, those funds may be tied up for weeks or even months during probate—a court-supervised process for settling a deceased person's estate.

Unless the bank account was set up to bypass probate, the money in it becomes part of the estate and may be frozen until the legal process plays out. That means your spouse, children, or other loved ones could be left without access to those funds until all legal matters are settled.

Joint Accounts and Rights of Survivorship

If the bank account is jointly held—commonly by spouses—it likely includes rights of survivorship. This means that when one account holder dies, the surviving person automatically becomes the sole owner of the account. This is the most straightforward way to ensure access to funds continues without interruption.

However, there are drawbacks to adding someone as a joint owner while you're alive. Joint owners have full access to the funds at any time, which could cause issues if there’s a falling out or financial conflict. In some cases, joint ownership can also affect government benefit eligibility or expose the account to creditors. Read more in our article, How Gifting and Joint Ownership Can Go Wrong

Payable-on-Death (POD) Beneficiaries

The most effective way to pass your bank account directly to someone after your death is by naming a Payable-on-Death (POD) beneficiary. This designation allows the bank to release the funds to the named person as soon as they provide a death certificate and valid ID—no probate required.

Designating a POD beneficiary doesn’t give them access to the money while you’re alive. You stay in full control of the account and can change the beneficiary at any time. This is an easy and legally sound way to ensure someone you care about receives the funds without court involvement.

What If There’s No Joint Owner or POD Beneficiary?

If you haven’t named a joint owner or POD beneficiary, the money in your account will likely go through probate. The court will appoint an executor or administrator to handle your estate, which includes contacting financial institutions, gathering account information, and transferring funds into an estate account.

This process can be complex and time-consuming. Executors often spend hours on the phone with banks, submitting legal documents like death certificates, letters of administration, and notarized forms. Some institutions may require you to open a new estate account before releasing funds.

For families dealing with grief and financial stress, this red tape can be overwhelming. That’s why having a clear estate plan—and working with an experienced probate attorney—is so important.

Using a Trust to Control What Happens to Your Bank Account

Another effective way to ensure your bank account is handled exactly as you intend after your passing is by including it in a revocable living trust. When you transfer ownership of your account to your trust, it becomes a trust asset and is managed by your chosen trustee according to the instructions you leave behind. This allows your money to pass directly to your beneficiaries without going through probate, even if there's no POD designation. A trust offers more flexibility than a POD, especially if you want to set conditions on how the money is used—like paying for a grandchild’s education or supporting a family member over time. Setting up a trust with a qualified estate planning or probate lawyer ensures you have greater privacy, control, and peace of mind, making it a smart move for many individuals and families.

The Role of a Probate Lawyer

A probate lawyer can guide your family through the legal steps required to access your bank accounts after your passing. From preparing court filings to contacting financial institutions and ensuring deadlines are met, a probate lawyer helps simplify an otherwise difficult process.

If your accounts must go through probate, your attorney can help your executor gather the necessary documentation, communicate with banks, and resolve any disputes among heirs. This is especially important if your estate is large or your accounts are held in multiple institutions.

In the Boerne, New Braunfels, and San Antonio areas, families often start by searching for a probate lawyer near me—and that’s where McCammon Law, P.C. comes in. Request a consultation with our team to learn how we can help ensure your assets pass the way you intend and your loved ones have support when it matters most.

Key Takeaways

• Joint accounts with rights of survivorship automatically pass to the surviving account holder.

• Payable-on-death (POD) designations allow named individuals to access the funds without probate.

• Without a joint owner or POD beneficiary, bank accounts must go through probate, which can delay access to funds.

• Probate can be a complex legal process, especially when multiple institutions are involved.

• Having a will and estate plan helps clarify your wishes and makes it easier for your family to manage your affairs.

• Consulting a local Texas probate lawyer is one of the best ways to ensure your loved ones are protected and supported during the process.

References: Motley Fool (Sep. 5, 2023) “Here's What Happens to Your Bank Account When You Pass Away” Investopedia (June 13, 2023) “What Happens to Your Bank Account After Death?”