What happens is I have a joint account with someone who has died? - DFA Law LLP Solicitors (2024)

FAQs

What happens is I have a joint account with someone who has died? - DFA Law LLP Solicitors? ›

Rights of survivorship — Generally if one account holder passes away, the remaining partner has full access to the money in the account.

Upon the death of any of the Joint Depositors in a joint “OR” account, the surviving Joint Depositors agree that the entire balance of the account shall be payable to them solidarily by right of survivorship, subject to compliance with the Bank's policies and settlement of applicable tax liabilities as may be required ...

In the majority of cases, when one of the owners of a joint account passes away, ownership automatically passes on to the surviving member (or members). Because of this, joint accounts typically avoid the extensive probate process that other accounts can be subject to.

Joint bank accounts

Couples may also have joint bank or building society accounts. If one dies, all the money will go to the surviving partner without the need for probate or letters of administration. The bank may need the see the death certificate in order to transfer the money to the other joint owner.

If the bank account is jointly owned

In this case, where there are two owners, and one of the owners dies, then the surviving owner automatically becomes the only real owner of the account. It's up to the surviving owner whether he/she wants to still treat the account or close it.

If the account is held jointly by two or more natural persons, or by two or more juridical persons or entities, the maximum insured deposit shall be divided into as many equal shares as there are individuals, juridical person or entities, unless a different sharing is stipulated in the document of deposit.

Joint Bank Account Rules on Death

"The joint owner becomes the legal and equitable owner of all funds in a joint account at the instant of death," says Doehring. "It does not become part of the probate estate."

The surviving co-owner can access their partner's funds in a joint account. This means that even if there's no formal agreement stating what should happen with the funds when one person dies, the remaining account holder may take full control per banking laws.

It depends on the account agreement and state law. Broadly speaking, if the account has what is termed the “right of survivorship,” all the funds pass directly to the surviving owner. If not, the share of the account belonging to the deceased owner is distributed through his or her estate.

What happens to joint accounts when someone dies? Most joint bank accounts include automatic rights of survivorship, which means that after one account signer dies, the remaining signer (or signers) retain ownership of the money in the account.

Is a joint bank account considered part of the deceased estate? ›

If you share a bank account with your spouse, it automatically passes to them when you die. The account is not considered part of the deceased spouse's estate and generally not subject to probate fees.

The Uniform Probate Code (UPC) and Joint Bank Accounts:

This means that if no specific language is included in the account agreement indicating a different intention, the surviving account holder(s) will automatically assume ownership of the funds.

Do all joint bank accounts have rights of survivorship? Generally, the 'principle of survivorship' applies to jointly held bank accounts. This means that in the case of a joint account holder's death, the surviving joint account holder receives the remaining funds, and full control of the account.

Upon the death of a co-depositor, the funds in the joint account would become property of the living co-depositors. As a consequence, the living co-depositors may make use of it for any purpose they may deem necessary.

These agreements between joint depositors allow the surviving depositor to gain full ownership of the bank account when the co-depositor dies. A joint bank account is a co-ownership. In law, the shares of the co-owners are generally presumed equal.

We provide below the highlights of the RMC: The executor, administrator, or any of the legal heirs who maintained a bank deposit with the decedent may be allowed to withdraw within one year from the date of death, provided that the amount withdrawn shall be subject to a 6%withholding tax.