What Happens to a Joint Bank Account After Death?

Joint bank accounts are useful financial tools that can simplify the management of shared funds between two parties. When one account holder dies, what happens next depends largely on the account’s title. Often, a joint account with rights of survivorship allows the surviving owner to assume full financial control. In other situations, the deceased owner’s share may pass through probate. Understanding how joint accounts work after death can help you better prepare for your family’s financial future.

A financial advisor can help you make a plan for how your assets will pass to your family, friends and causes you support.

Joint Accounts and Rights of Survivorship

A joint bank account with rights of survivorship automatically transfers ownership to the surviving account holder upon a co-owner’s death. The funds do not become part of the deceased person’s estate, which means they typically avoid probate. Instead, the surviving owner may continue to use the account after submitting the required documentation, such as a death certificate.

Rights of survivorship are common in joint accounts between two parties who share ongoing financial responsibilities. This includes spouses, partners and family members.

Each owner has equal access to the funds for life, regardless of who deposits the funds. After one owner’s death, the survivor generally becomes the sole owner of the account.

Because the transfer happens by operation of law, a will usually does not control what happens to the account balance. Even if the deceased owner named another beneficiary in their will, the survivorship designation on the account typically takes precedence.

When a Joint Account Goes Through Probate

A joint bank account may be subject to probate if it doesn’t carry the provision for rights of survivorship. In these cases, the account is often held as tenants in common. This means each owner has a separate ownership share rather than an automatic transfer arrangement. When an account holder passes away, their portion of the account is absorbed into their estate rather than automatically transferring to the other owner.

The deceased owner’s share is then distributed according to their will or, if no will exists, under state intestacy rules. Probate may also be necessary if the account did not include survivorship language upon account opening or if the bank’s records are unclear.

In less common situations, probate may apply if all joint account holders die simultaneously, with no surviving owner to assume control of the funds.

Understanding Bank Account Titling and Ownership Rights

A bank account’s title establishes ownership of the money and dictates how it is handled after an owner’s death. Banks often use specific legal terms, like joint tenants with right of survivorship and tenants in common, to define these outcomes.

What often surprises people is that informal intentions carry little weight. Adding someone to an account for convenience or assuming a certain distribution of funds does not override the account’s legal title. Banks rely on the written account agreement, not verbal agreements or side understandings, when determining ownership.

Therefore, the exact wording you use when you open or update your account will determine how funds are treated. Reviewing account titles can determine whether they align with the owner’s expectations for managing funds.

Joint Accounts vs. Beneficiary Designations

Although both structures allow money to pass outside probate, they create very different legal and practical outcomes. A joint account establishes shared ownership while both parties are alive. However, this can expose the funds to each owner’s creditors, divorces or legal judgments.

Beneficiary designations avoid these issues by keeping ownership with a single account holder until death. Because beneficiaries have no legal rights during the owner’s lifetime, the account is safe from their financial risks. This structure also allows more precise estate planning, allowing you to name multiple beneficiaries or align distributions with your estate plan.

Another distinction is flexibility. Joint accounts are harder to unwind without the other owner’s involvement, while you can usually change beneficiary designations unilaterally.

Bottom Line

What happens to a joint bank account after death ultimately depends on how you structure the account on paper. Rights of survivorship, tenants in common and beneficiary designations each lead to different outcomes affecting ownership, probate and control of funds. Reviewing the titling of these accounts and how they interact with the rest of an estate plan can help reduce confusion and unintended results when assets change hands.

Estate Planning Tips

Leaving assets outright may be simple, but it’s not always ideal. Trusts can be structured to distribute assets over time, tie distributions to certain milestones or provide protections for beneficiaries who may be young, financially inexperienced or vulnerable to creditors.
A financial advisor can review how your assets are actually titled, help identify gaps or conflicts between beneficiary designations and coordinate with an estate attorney to keep everything aligned. A financial advisor with Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.