Do Joint Bank Accounts Go Through Probate?

When someone’s estate goes through probate, it can take months before their heirs or designated beneficiaries can receive certain assets. This prompts many people to wonder, “Do joint bank accounts go through probate?” among other questions.

This guide has the answer. Learn about the joint bank account probate rules in California, and how they may affect your estate.

Why It’s Wise To Work With a Probate Attorney in Santa Clara County

The probate process can be complicated and overwhelming. Whether you’re handling a loved one’s estate or planning for your own future, an experienced attorney can provide useful insights and clarity.

Some people assume that every estate must go through probate court before assets can be distributed. However, that’s not always the case. Assets in established trusts could avoid the process, as well as estates below a certain value.

Consulting a qualified probate attorney in Santa Clara County can help you make sense of the legal complexities. Attorneys who are well versed in estate law can be a valuable resource as you navigate everything from creating a will to managing a loved one’s estate.

Breaking Down When Bank Accounts Aren’t Subject to Probate

Do joint bank accounts go through probate in California? Is it possible to prevent an account from going through probate? These are some valid questions to ask an estate planning lawyer.

The probate process can look different for everyone, depending on the decedent’s assets and who has access to them. Suppose someone holds an individual checking account with $5,000 in it when they pass away. The future of the account depends on a few key factors, including:

• Payable-on-death designation: Many financial institutions allow customers to name a beneficiary on their accounts. Any funds within the account at the time of the owner’s death are typically paid to the beneficiary rather than sent through probate.
• Overall estate value: California has a minimum threshold for estates regarding probate. If someone’s assets do not exceed that threshold, their estate may not be subject to the standard probate process, but rather simplified procedures.
• Joint tenancy: Thanks to a legal concept called the right of survivorship, a joint bank account generally belongs to the surviving owner should the other one pass away. They’ll have full control over the funds right away rather than waiting for the estate to settle.

While there are some bank accounts that avoid probate in California, others will need to go through the process. For instance, if the account is solely owned by the decedent, no beneficiary was named, and the estate meets the state’s threshold, those funds are subject to probate.

Use Right of Survivorship and Probate Laws to Your Advantage

If you ask an attorney, “Do joint bank accounts go through probate?” the answer is often “no.” This can be advantageous for people who hold a lot of funds in the bank and want to protect their assets. Assuming the account includes a right of survivorship, adding another owner means any funds within the account will automatically transfer to that person upon the original owner’s death.

The surviving owner can then keep the account open and make their preferred changes. While a payable-on-death designation also helps the assets avoid probate, it does not mean the beneficiary can control the account. Instead, many banks will issue the beneficiary a check for the funds.

If you’re interested in this tactic for estate planning purposes, consider the following tips:

• Review the banking options and policies: Talk with a bank representative about the possibilities of creating a joint account.
• Discuss the details with the other account owner: If you plan to add a loved one to your bank account, be open and honest about your intentions.
• Consult a lawyer: If keeping your assets out of probate is a priority, consult a knowledgeable attorney. They could explore ways to protect other major assets, such as retirement savings and real estate.

Plan for the Future With Radiant Probate & Estate Law, Inc.

Do joint bank accounts go through probate? Are there benefits to creating a will versus a trust? What is considered exempt property in probate?

Consult the attorneys at Radiant Probate & Estate Law, Inc. for answers to these questions and more. Our experienced legal team regularly assists clients with both estate planning and administration. Whether you want to learn more about how joint ownership affects the probate process or which assets can be made payable on death, we’re happy to help.

Make an appointment with our team to dive into estate planning. Call (650) 493-9200 to get started.