What Happens When One Account Holder Dies? | Joint Bank Accounts & Estate Planning

📥 Download my FREE Estate Planning Guide: https://thefarrelllawfirm.com/estate-...

What happens to a joint bank account when one account holder passes away? The answer isn’t always as simple as you might think. In this video, estate planning attorney John Farrell explains how banks handle joint accounts after a death, common legal pitfalls, and how you can plan ahead to protect your loved ones.

00:00 What Happens to a Joint Bank Account After Death?
00:18 Why Joint Accounts Don’t Always Work the Way You Think
00:49 Three Possible Outcomes When a Joint Account Holder Dies
00:58 Outcome #1 – Bank Does Nothing, Survivor Uses the Account
01:20 Outcome #2 – Bank Freezes Half the Account
01:39 Outcome #3 – Bank Freezes the Entire Account
01:59 Why “Joint” Doesn’t Always Mean You Own the Money
02:01 Common Mistakes with Joint Bank Accounts
02:37 How to Protect Your Loved Ones from Frozen Accounts
02:47 Confirming Account Titles and Bank Policies
02:54 Using Payable on Death (POD) Designations
03:01 Using a Revocable Living Trust for Bank Accounts
03:08 Reviewing Your Estate Plan to Avoid Probate Problems
03:19 Final Thoughts – Don’t Assume, Plan Ahead

🔔 Subscribe for More Estate Planning Tips:
If you want to stay informed about estate planning, wills, trusts, and probate, don’t forget to like this video, subscribe to my channel, and hit the notification bell so you never miss an update!

Watch my whole Estate Planning playlist here:
   • Estate Planning  

---

📌 The Reality of Bank Policies vs. Estate Law
Many people assume that if they share a joint bank account, the surviving account holder automatically gets all the money. While banks may allow continued access, estate laws could dictate otherwise. In some cases, the deceased’s share legally belongs to their estate, meaning heirs may have a claim.

---

📌 Three Possible Outcomes When a Joint Account Holder Dies
When one account holder passes away, banks generally take one of three approaches:

1️⃣ The Bank Does Nothing – The surviving owner continues to use the account, but the estate may still have a legal claim to the deceased’s share.
2️⃣ The Bank Freezes Half the Account – The deceased’s portion is restricted until legal ownership is determined, which may require probate.
3️⃣ The Bank Freezes the Entire Account – The most restrictive approach, leaving the surviving owner without access until probate is completed.

These policies vary by state law, financial institution, and how the account was originally set up, making proactive planning essential.

---

📌 Why ‘Joint’ Doesn’t Always Mean ‘Yours’
A common mistake is assuming that adding someone as a joint account holder automatically makes them the legal heir to the funds.

✔️ Example 1: A parent adds an adult child to their account for convenience. Legally, the money still belongs to the parent, and after their passing, the funds may be subject to probate.
✔️ Example 2: A married couple with a joint account may benefit from state laws that allow the surviving spouse to inherit the funds automatically.

The key takeaway? Account ownership rules depend on the type of account and state laws.

---

📌 How to Protect Your Loved Ones from Banking Headaches
If you want to avoid financial delays and legal disputes, consider these estate planning steps:

✔️ Check with your bank to confirm how your account is titled and what their policy is when an owner passes away.
✔️ Use payable-on-death (POD) designations so beneficiaries can claim funds directly without probate.
✔️ Consider a revocable living trust to hold your accounts, ensuring a smoother transition of assets.
✔️ Review your estate plan regularly to align your accounts with your wishes and minimize legal complications.

📞 Need Help with Estate Planning?
If you want to make sure your financial affairs are in order, we’re here to help!

🔹 Book a consultation today: https://thefarrelllawfirm.com/free-co...

🔹 Visit our website for more information: https://thefarrelllawfirm.com/

🔹 Follow us for more estate planning tips:

👉 Facebook: https://www.facebook.com/profile.php?...
---

🔔 Don’t Forget to Subscribe!
If you found this video helpful, please like, comment, and subscribe to my channel for more estate planning tips. Your support helps us continue to provide valuable content!



#EstatePlanning #JointBankAccounts #Probate #FinancialPlanning #Inheritance #EstateLaw #AvoidProbate #WillsAndTrusts #BankingRules #FamilyWealth

This is not legal advice, nor can I give you legal advice. I AM NOT YOUR LAWYER. Everything here is for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Nothing here should be construed to form an attorney-client relationship.