After your death, various things can happen to your bank accounts, depending on the type of account you have, how you set it up before your death, and whether you have a will or trust. Gallinger Law will describe different scenarios below that may happen to your bank account after you pass away.
Name The Beneficiary Of The Bank Account
The easiest way to pass your bank account to your heirs after you die is to make sure you name a beneficiary on your account for payment on death or transfer on death. If you pass a will without a will, the estate will be declared to the intestate heirs and will go to the probate court instead of going directly to your heirs. Once you designate a death beneficiary, the court will not have direct access to your money until your death. You reserve the right to change the nominated beneficiary on death at any time. If someone is listed as a beneficiary on your account, they can access the funds in the account after your death by simply presenting a valid government ID and a copy of your death certificate.
What happens To Joint Accounts When Someone Dies?
When two people open a joint bank account, the surviving signer will usually retain ownership of the funds in the account after the other’s death. However, there are exceptions – for instance, if the surviving owner is a minor, the bank may not transfer the title to them right away. The surviving joint account holder can still access the money in the account without any problems. It’s important to make sure you open an account that meets your needs and expectations, so make sure to speak with your bank about it.
Write A Will
If you have a will, your heirs won’t necessarily be able to avoid the probate process, but at least you have a guideline on who will get your assets. The probate process can be lengthy, and your heirs may need to hire an expensive probate attorney, depending on where they live. Additionally, your will becomes public knowledge after your death, and assets passed through your will may still be subject to estate tax.
Set Up A Trust
There are different types of trust but in general terms, a trust is a document that grants you, another person, or an entity the authority to hold and manage your money for your or someone else’s benefit. Trusts can be used for a variety of purposes, including estate planning, tax planning, medical planning, and charitable giving. Unlike a will, which is designed to gift assets after your death, a trust can hold and invest your money and assets during your lifetime and after your death. You can put anything you own into a trust, such as money, bank accounts, stocks, bonds, real estate, life insurance policies, vehicles, furniture, art, jewelry, and writings. Also, assets you invest in a trust do not have to go through the probate process, which can be time-consuming, expensive, and public.
What Happens If You Die With An Estate Plan?
If you die without establishing anything, your account will be probated and distributed according to California laws. In most states, an executor is appointed who is responsible for satisfying any creditors of the deceased. The remaining money is distributed to the spouse and children of the deceased. If the deceased has no survivors, will or trust, beneficiaries, or joint account holders, in most cases the estate funds will go to the state.
Our goal at Gallinger Law is to ensure you leave your family and estate protected. We’re here for all of your estate planning needs, whether it’s creating or updating your estate plan, knowing what to do when someone dies, or business law, nonprofit applications, and immigration services. If you are considering services near Los Angeles County, the Inland Empire, and Orange County call 888-255-9147 to speak with one of our attorneys.