When someone dies, handling their bank accounts is one of the most urgent tasks for surviving family members. In Florida, what happens next depends on the type of account, whether a beneficiary was named, and if the deceased had a will or trust in place. This guide covers the different scenarios and legal steps involved in accessing and distributing bank funds after death.

When a person passes away, their financial affairs, including their bank accounts, must be managed and distributed according to estate planning and probate laws. The fate of a bank account depends on several factors, including account ownership, beneficiary designations, and whether or not probate is required.

Understanding how the account was structured is the key to determining what steps are needed and how quickly funds can be accessed by heirs or beneficiaries.

Does a Joint Bank Account Automatically Go to the Survivor?

If the deceased held a joint bank account with another person, the surviving account holder usually assumes full control of the funds. This is typically because the account was structured as a Joint Tenancy with Right of Survivorship (JTWROS) which is a legal arrangement where ownership automatically passes to the surviving joint owner when one party dies.

This transfer occurs outside of probate, making it a fast and efficient way to access funds. However, it’s important to confirm that the account was set up with survivorship rights, as not all joint accounts include this feature. Some may be structured as “tenants in common,” which do not offer the same automatic transfer of ownership.

While joint accounts simplify fund access, they may still be subject to creditor claims. If the deceased had outstanding debts, creditors might attempt to collect from joint accounts. Additionally, using a joint account as a substitute for a full estate plan can backfire. For example, adding a child to a bank account for convenience, such as bill-paying assistance, can unintentionally make them the sole owner after death, disinheriting other heirs.

By consulting with an estate planning attorney, you ensure your account setup aligns with your overall intentions and protects your loved ones.

What Is a Payable-on-Death (POD) Bank Account?

A payable-on-death (POD) account allows an account holder to name a beneficiary who inherits the funds upon their death. Once the bank is presented with the death certificate and identification, the funds are transferred directly to the beneficiary, bypassing probate.

This method is efficient but requires regular maintenance. Life changes like marriage, divorce, or the birth of children can render a POD designation outdated. Without proper updates, an unintended person, like a long-estranged ex, could inherit your funds. Including your bank accounts in your estate plan ensures that beneficiary designations reflect your current wishes.

What If the Deceased Had an Individual Account With No Beneficiaries?

When a person dies with a solely held account and no beneficiary, that account typically goes through probate. The bank will freeze the funds until the court appoints an executor to administer the estate. Once debts are settled, remaining funds are distributed according to the will or, if none exists, according to state intestacy laws.

Probate can be time-consuming and costly, which is why many choose estate planning strategies like POD accounts or trusts to avoid it. Florida, for example, often requires hiring an attorney to navigate the probate process.

Do Bank Accounts in a Trust Avoid Probate?

Some people place their assets, including bank accounts and other digital assets, into a trust. When the account holder dies, the trustee takes control and distributes the funds according to the trust’s instructions.

Trusts avoid probate, maintain privacy, and allow for greater flexibility. They can be used for staged disbursements, care for special-needs dependents, or long-term financial support for loved ones.

What Happens to a Deceased Person’s Bank Accounts if They Died Without a Will in Florida?

If the person died intestate (without a will), and the account wasn’t jointly held or had no beneficiary, the funds go through probate. Florida’s intestacy laws determine the distribution of the estate. Typically, this means assets are divided among surviving spouses, children, or other close relatives.

In these cases, the court will appoint a personal representative, often a surviving spouse or adult child, to manage the estate and distribute assets according to Florida law. The process can be time-consuming and may involve legal fees, creditor notifications, and court supervision. Without clear estate planning or designated beneficiaries, delays are common, and disagreements between heirs can arise. This underscores the importance of having a valid will or using tools like trusts and payable-on-death (POD) designations to streamline the transfer of assets and avoid unnecessary complications.

What Happens If Your Spouse Dies and You Don’t Have Access to Their Bank Account?

If your spouse dies and you weren’t listed as a joint account holder or POD beneficiary, you likely won’t be able to access the account until probate begins. In Florida, surviving spouses may receive certain rights to estate property, but access to financial accounts will be delayed until a court appoints an executor or personal representative.

To avoid this, spouses should consider joint ownership, naming each other as POD beneficiaries, or creating a trust.

In the meantime, a probate attorney can help initiate the court process and request temporary access to essential funds if needed.

What Happens to Credit Card Debt When You Die?

When someone passes away, their credit card debt doesn’t simply vanish; it becomes part of the estate’s financial responsibilities. Generally, any outstanding balances must be paid out of the deceased’s assets before any inheritances are distributed to beneficiaries.

In most cases, surviving family members are not personally liable for the debt unless they were joint account holders or cosigners on the account. However, creditors can still file claims against the estate during the probate process. This means that if the estate has enough assets, those funds may be used to pay off credit card balances; potentially reducing the inheritance others receive.

Even accounts that bypass probate (such as joint accounts or payable-on-death accounts) may still be subject to creditor claims under certain circumstances, depending on state law. That’s why it’s important to have a well-structured estate plan that accounts for debts and protects your loved ones from unexpected financial burdens.

How Can You Avoid Probate & Protect Your Family?

Probate can be a long, expensive, and emotionally draining process for grieving families. Fortunately, there are several ways to structure your estate so that your bank accounts and other assets transfer smoothly without court involvement.

Here are a few proactive strategies:

  • Use Payable-on-Death (POD) Designations: POD accounts automatically transfer to named beneficiaries, skipping probate entirely.
  • Establish a Revocable Living Trust: Placing your bank accounts and assets in a trust ensures they are managed and distributed privately, without court delays.
  • Maintain Joint Ownership: Joint accounts with rights of survivorship can allow seamless access for a surviving spouse or trusted family member.
  • Keep Your Estate Plan Updated: Regularly reviewing and revising your estate documents ensures they reflect your current wishes, family structure, and financial circumstances.

By planning ahead, you can reduce stress for your loved ones, minimize legal fees, and ensure your financial legacy is handled exactly how you intended.

RTRLAW Can Help Protect Your Family’s Financial Future

Without a clear estate plan, accessing a loved one’s bank account can be delayed, complicated, and emotionally draining. From establishing POD designations to creating trusts, RTRLAW’s experienced estate planning attorneys will help you craft a strategy that protects your assets and eases the burden on your family.

Call 1-833-HIRE-RTR or email [email protected] today for a free, no-obligation consultation.