When an owner of a joint bank account dies, their share of the account generally transfers automatically to the surviving co-owner(s). This is due to the right of survivorship on joint bank accounts, a way of holding title that allows the surviving account holder(s) to receive full ownership of the account without any funds passing through probate.
Suppose two unmarried partners open a joint account to ensure financial security for the survivor. Since they’re not entitled to community property or other marital protections, joint ownership gives them peace of mind. When one partner dies, the surviving partner continues to access and use the account without interruption — regardless of how much they contributed.
In short, what happens to a joint bank account when someone dies is simple: Ownership transfers seamlessly and automatically.
But while joint accounts can streamline the transfer of funds after death, they aren’t always without complications. For instance, in some cases, a co-owner can unilaterally sever joint ownership, causing the account to close and each party to receive their share. In other cases, some banks may require the consent of all account holders before a joint account can be dissolved.
Another potential issue is when the right of survivorship on a joint bank account is contested due to problems that call the validity of the survivorship designation into question. Although the right of survivorship is generally presumed, this presumption can be rebutted by clear and convincing evidence demonstrating a contrary intent.
For example, if a terminally ill account holder, while lacking mental capacity or as a result of manipulation, adds someone to the account shortly before death, family members might challenge the transfer by alleging undue influence, fraud or lack of mental capacity. Additionally, if the decedent explicitly revoked the right of survivorship — such as by leaving the account to someone else in their trust — this could also override the presumption.
If the court finds sufficient evidence supporting such claims, it may order that a portion of the account be transferred to the decedent’s estate for distribution according to their wishes.
In sum, while joint accounts may seem like a simple way to pass on funds, it’s essential to understand joint bank account rules on death to ensure your rights and inheritance are protected. If you need assistance untangling a complex situation involving joint bank accounts after death, a probate attorney can help you make sense of it all.
Important Joint Bank Account Rules on Death
How do joint bank accounts work after death? While it’s true joint bank accounts generally transfer automatically to the surviving account holder(s) following a co-owner’s passing — which typically allows the account holder(s) to retain full and uninterrupted access to the account — there may be a few additional steps for them to take.
Is Informing the Bank of the Death of a Joint Account Holder Necessary?
Regardless of the financial institution, joint bank account rules on death generally require surviving account holders to inform the bank when a co-owner dies.
Most banks will request a certified copy of the death certificate to verify the death and begin the process of updating account records. While access to the account may continue uninterrupted due to the right of survivorship, removing the decedent’s name from the account is important for preventing fraud, limiting liability and avoiding potential conflicts with the decedent’s heirs.
Depending on the bank’s policies, the surviving account holder(s) may either keep the joint account or close it and open a new individual account in their name.
Are Joint Bank Accounts Frozen When Someone Dies?
Joint bank accounts usually are not frozen when a co-owner dies — unlike solely owned accounts, which typically are. One of the main advantages of joint ownership is that the account remains accessible to surviving co-owners, and there is no disruption in their ability to use its funds.
That said, banks still require official notification of the death and may temporarily freeze the account if the death raises red flags or legal complications, such as a contest over ownership. In general, though, surviving co-owners retain full access unless legal action is taken, in which case their access could be limited or restricted.
Is a Joint Bank Account Part of an Estate?
A properly established joint bank account passes directly to the surviving account holder(s), entirely bypassing the decedent’s estate. So, no, a joint bank account is not typically considered an estate asset.
However, if the right of survivorship on a bank account is successfully contested — for instance, due to fraud, undue influence, lack of capacity or evidence of a contrary intent— the decedent’s share of the account could transfer to their estate, where it will be distributed according to their will or intestate succession laws. But this could also expose the decedent’s share to creditor claims and other financial liabilities.
So, while a joint account is generally considered a non-estate asset, a co-owner’s share of such an account could become part of an estate if survivorship rights are overturned. Under California Probate Code section 5302, if “clear and convincing evidence of a different intent” is shown, a deceased person’s bank account that’s jointly owned may be deemed part of their estate despite the right of survivorship.
Do Joint Accounts Go Through Probate?
Joint bank accounts typically do not go through the probate process. However, property disputes surrounding joint ownership could give rise to certain rare exceptions.
For example, if a caregiver persuades an elderly person to add them as a joint owner to an account shortly before death — especially when the decedent’s will shows the account was meant to benefit their children — the children would have standing to contest the right of survivorship on grounds of undue influence, fraud or even lack of capacity.
If a court finds that the joint account was improperly established, the account (or the contested share) may pass through probate to be distributed in accordance with the will or intestacy laws.
Can Creditors Go After Joint Bank Accounts After Death?
In general, creditors cannot go after joint bank accounts after a co-owner dies, since the surviving account holder(s) automatically assume full ownership through the right of survivorship.
That said, there are exceptions under which a joint account — or the decedent’s portion — may become subject to creditor claims:
- If the co-owners had shared liabilities — such as a joint loan — creditors may have the ability to pursue the joint bank account after the death of a co-owner.
- If joint ownership is severed prior to death, the account may convert to tenancy in common, meaning each owner would hold a distinct and transferable share. In such a case, the decedent’s portion would pass through probate and become subject to estate debts.
- If the account was held for convenience only (e.g., an aging parent added a child solely to help them manage their financial affairs), and it’s proven the decedent never intended for the child to inherit the funds (e.g., the decedent specifically stated in their will that the child is not to inherit the account), the account may be reclassified and pulled into the estate, making it subject to creditor claims.
Who Pays Taxes on a Joint Account After Death?
Tax responsibility depends on when the interest was earned and how the account was structured.
If, for instance, a joint account earned interest before the death of a co-owner, the decedent’s share of taxes must be paid by their estate.
On the other hand, if the joint account earned interest after the death of a co-owner, the surviving account holder(s) are responsible for taxes on the full amount of post-death interest.
While joint account ownership is typically presumed to be equal unless proven otherwise, the IRS may require interest income — and the resulting tax burden — to be allocated based on each co-owner’s actual contributions, particularly if one person contributed the majority of the funds.
FAQs on Joint Bank Accounts After Death
Still confused about joint bank account rules on death? Explore the frequently asked questions below for clear guidance on common scenarios.
If you have case-specific concerns, we encourage you to contact our firm directly. Our experienced legal team is ready to help.
Can a right of survivorship bank account be challenged?
Yes, a right of survivorship bank account can be challenged — but only if you have both standing and valid grounds.
You may have standing if you have a financial stake in the challenge. For example, if successfully invalidating the survivorship designation would cause the funds to pass to you as an heir under intestate succession or as a beneficiary through a will or trust, you would have the right to contest it.
Valid grounds generally include fraud, undue influence, lack of capacity, lack of due execution, mistake, forgery or evidence of contrary intent.
Suppose a parent adds one child to a joint account for convenience but later creates a trust directing that all assets, including that account, be divided equally among all children. In such a case, the siblings of the child on the joint account might present the trust as evidence that the decedent did not intend for the joint account holder to inherit the entire account balance. If the court finds sufficient evidence supporting the claim, it may order that the account be pulled into the estate and distributed according to the decedent’s estate plan.
What does closing a joint bank account after death entail?
Closing a joint bank account after a co-owner’s death usually begins with notifying the bank and providing a certified copy of the death certificate. This step is essential, even though the account may remain open and accessible to the surviving account holders.
If there is only one surviving account holder, the bank may simply remove the deceased co-owner’s name and allow the account to continue under the survivor's sole ownership. Alternatively, the bank may close the account and transfer the funds to a new individual account.
If, on the other hand, multiple account holders remain after a co-owner’s death, closing the joint account may require unanimous consent. In such cases, closing the account would effectively sever joint ownership and could trigger conversion to tenancy in common.
Ultimately, what happens to a joint bank account after somebody dies — and whether it must be closed, closes automatically or requires unanimous consent to close — depends on the specific policies of the bank.
Is changing a joint bank account to sole ownership after death possible?
Yes. If there are two names on a bank account and one dies, the account will generally convert to sole ownership automatically once the death is reported and the records are updated.
If the account had more than two owners, converting it to sole ownership may involve more steps. For example, the remaining co-owners might need to provide written consent to sever joint ownership before the account can be closed or converted into a solely owned account, depending on the bank’s requirements.
Does a will override a joint bank account?
Generally, no. Because a right of survivorship is implied with a joint bank account, it passes directly to the surviving account holder(s) upon a co-owner’s death and is not controlled by a will.
Joint bank accounts are considered non-probate assets, and wills only control those assets that pass through probate.
That said, a will could help establish evidence of a decedent’s intent, which can be used to challenge the right of survivorship under California Probate Code section 5302. If there is "clear and convincing evidence" in the will that the decedent did not intend for the surviving co-owner(s) to inherit the account, the will could “override” joint ownership.
For example, if a sibling was added to a joint account solely to help with business operations, and the decedent's will explicitly calls for the account to pass to their spouse, the spouse may have grounds to contest the sibling’s survivorship rights.
What happens to joint bank accounts after the death of a spouse?
When there are two names on a bank account and one dies, ownership typically transfers automatically to the surviving account holder — regardless of whether they were married, related or unrelated.
However, in community property states like California, a bank account that’s jointly owned by spouses or registered domestic partners has the option to be titled as community property without a right of survivorship. In such a case, only 50% of the account may belong to the surviving spouse, with the other 50% potentially passing to the deceased spouse’s estate.
What if I co-owned a joint bank account with a deceased parent?
If you co-owned a joint bank account with a parent who has passed away, you will usually assume full ownership of the account automatically upon their death.
However, many parents add children as joint owners for convenience only — e.g., to assist with paying bills or managing finances. This does not always mean they intended the child to inherit the funds.
If the decedent’s will explicitly states that the account should pass to someone else, such as a charity or another family member — or there is other evidence to suggest the decedent didn’t intend for the account to transfer to their child upon their death — the child’s survivorship rights may be challenged.
In such cases, the executor or another interested party can present evidence that the joint ownership was never meant to transfer inheritance rights.
What if I co-owned a joint account with a boyfriend or girlfriend?
If you shared a joint account with a romantic partner, and they died, you would typically inherit the entire account under the right of survivorship, regardless of marital status.
The nature of the relationship between joint owners doesn’t affect how the account is treated — what matters is how the account is titled. Unless the survivorship designation is successfully challenged, the surviving partner becomes the sole owner.
Still have questions about joint bank accounts after death?
Whether you’re trying to understand what happens to a joint bank account when someone dies, need help interpreting survivorship rights or wish to challenge an account’s survivorship designation, our probate attorneys are here to support you.
While joint accounts often seem straightforward, legal complexities can arise — especially if intentions were unclear, documents were manipulated or the account is being contested. Our team understands both the rules of probate and the nuanced ownership structures that can affect joint assets.
Contact us today to get clear legal guidance on joint bank account rules after death. We’re here to help you protect your rights and secure the inheritance you deserve.
