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What Do You Do With Bank Accounts When Someone Passes Away?

What happens to a bank account after the account holder’s death? What if there’s a joint owner to the account? These questions, and more, tend to arise when a person passes away leaving bank accounts in their name. At Nowakowski Legal PLLC, we assist out clients in the probate and administration of their loved ones estates that passed away in Washington; this includes assisting them in accessing and transferring assets that the Deceased maintained in their bank accounts.

Who Gets the Bank Account Funds?

How a deceased person’s bank account will be treated after they pass will depend on how they owned the bank account as the account owner.


Several different questions need to be answered in order to determine who gets the bank account funds after an account holder dies, including:


  • Was the deceased person the sole owner of the account?

  • Was their a joint holder listed on the account?

  • Is there a named pay on death beneficiary?

  • Did the account holder have a will?


As with most estate planning matters, the account holder can have full control over who will get your bank account funds when you pass by creating an estate plan.


Pay On Death Beneficiary Designations

If the deceased owned the bank account and listed someone as their "Pay on Death" beneficiary, then the account will be immediately available to the named "Pay on Death" beneficiary upon notifying the bank of the Deceased's passing.


This would be considered a "non-probate" transfer of assets, meaning that probate is not necessary to effectuate this transfer. Essentially, the deceased person had set up their account in such away that when they passed, their balance would automatically and immediately transfer to their listed "Pay on Death" beneficiary.


Joint Bank Accounts with Right of Survivorship

Bank accounts and certain other assets with a joint account holder may also be entitled to immediate access to the Deceased's account upon providing proof of death to the bank. Particularly, Joint Bank Accounts that have rights of survivorship will generally transfer in automatically to the remaining joint owner of the account upon the passing of the Deceased.


In this matter, a surviving owner will generally receive funds from a shared bank account when someone who shares the account dies.


This would be considered a "non-probate" transfer of assets, meaning that probate is not necessary to effectuate this transfer. Essentially, the deceased person had set up their account in such away that when they passed, their balance would automatically and immediately transfer to the surviving owner of the joint account.


No Pay on Death Beneficiary or Joint Account Holder

If the Deceased's bank account is a standard account without a Joint Owner or Pay on Death Beneficiary Designation, then the liklihood is that probate will be necessary to access the Deceased's account.


Essentially, the Deceased did not set up a method for his account to transfer to his heirs/beneficiaries, and as such, it will go through probate. In the probate action, the bank assets will be gathered by a Personal Representative, and then distributed in compliance with the Deceased's Will, or if there is no Will, then in accordance with Washington statute.


The Importance of Having a Skilled Probate Lawyer

Hiring a skilled attorney during probate is not just advisable; it often becomes essential for everyone involved. Their extensive knowledge and experience bring numerous benefits: expertise in legal matters, efficient handling of paperwork, protection against liability, and streamlining the process.


While the probate journey can seem overwhelming, having competent legal representation at your side can provide much-needed peace of mind in a challenging time. It allows you to focus on honoring your loved one's wishes and navigating the emotional aspects of loss.


Investing in professional legal assistance is a crucial step that leads to a smoother, more efficient probate process, ultimately allowing you to concentrate on healing and moving forward.


If you or anyone you know has lost a loved one and needs assistance with the probate of their estate, the attorneys at Nowakowski Legal PLLC would be happy to assist. Please contact us at 425-243-9595 or CLICK HERE to schedule a consultation today!

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