Bank accounts go through probate only if they're held solely in the deceased person's name with no beneficiary designation
A bank account passes directly to a named beneficiary without probate. If the account has a payable-on-death (POD) beneficiary, a transfer-on-death (TOD) registration, or is held as joint tenants with rights of survivorship, the money bypasses the probate process entirely. The bank transfers the funds to the named person or surviving owner within days or weeks of receiving a death certificate and proof of identity.
An account held only in the deceased person's name, with no beneficiary named and no joint owner, must go through probate. The executor or administrator of the estate petitions the court, the court authorizes the transfer, and the funds become part of the probate estate. This route takes months and costs money in court fees and legal expenses.
The difference between these paths is not about the bank's choice or the amount of money. It is about how the account was titled and what the account owner did (or did not do) before death.
Key Takeaways
- Accounts with a named POD or TOD beneficiary pass directly to that person without probate, usually within two to four weeks of providing a death certificate.
- Joint accounts with rights of survivorship transfer automatically to the surviving owner outside probate, but joint accounts held as tenants in common do go through probate.
- Accounts in the deceased person's name alone, with no beneficiary or joint owner, must go through probate before the executor can access or distribute the funds.
- Naming a beneficiary on a bank account costs nothing and takes minutes, but many people never do it, forcing their accounts into probate by default.
- Some states allow TOD registration on savings and checking accounts; others do not, so the available options depend on where the bank is located.
How payable-on-death and transfer-on-death accounts work
When you open a bank account or update an existing one, you can name a payable-on-death (POD) beneficiary at no cost. The account remains yours to use and control during your lifetime. When you die, the bank pays the full balance directly to the person you named, bypassing probate entirely. The beneficiary presents the death certificate and identification to the bank, and the transfer happens outside the court system.
Transfer-on-death (TOD) registration works the same way but is available in some states for certain account types. Not all banks offer TOD, and not all states allow it for checking and savings accounts. Ask your bank whether TOD is available in your state and for your account type. If it is, the process is identical to POD: you name the beneficiary, and the account transfers directly upon death.
You can name multiple beneficiaries and specify what percentage each receives. If a beneficiary dies before you do, most banks will ask you to update the designation. If you do not update it, the funds may go to the deceased beneficiary's estate, which complicates matters. Review and update beneficiary designations every few years or after major life changes.
Joint accounts and what "rights of survivorship" means
A joint account held as joint tenants with rights of survivorship passes to the surviving owner automatically when one owner dies. The surviving owner already has legal claim to the full balance, so probate is not needed. The surviving owner can access the account immediately with a death certificate.
The critical phrase is "rights of survivorship." Not all joint accounts have it. Some are held as tenants in common, which means each owner's share goes through that owner's estate when they die, even though the account is jointly titled. The difference is set when the account is opened. Ask your bank which type your account is, and if it is tenants in common, ask whether you can change it to joint tenants with rights of survivorship.
Joint accounts carry a risk: both owners can withdraw the full balance at any time. If you add someone as a joint owner to avoid probate, that person can empty the account without your permission. A POD or TOD beneficiary cannot touch the account while you are alive, which is why many people prefer that route.
Accounts with no beneficiary and no joint owner
If an account is titled only in the deceased person's name and has no POD, TOD, or joint owner, the money is frozen. The bank cannot release it to family members, even if they have a will. Only the court-appointed executor or administrator can access the account, and only after the probate court authorizes it.
The executor files a petition with the probate court in the county where the deceased person lived. The court reviews the will (if one exists), notifies heirs and creditors, and eventually issues an order allowing the executor to access the account. This process typically takes three to six months, though it can stretch longer if the estate is contested or complex. The executor pays court filing fees, and if an attorney is involved, attorney fees come out of the estate as well.
During probate, creditors can make claims against the estate. If the deceased person had unpaid medical bills, credit card debt, or taxes owed, those debts are paid from the probate estate before heirs receive anything. A POD or TOD account, by contrast, passes directly to the named beneficiary and is not available to creditors in most states.
State rules and what your bank allows
Probate rules and account options vary by state. Some states allow TOD registration on checking and savings accounts; others allow it only on certain account types or not at all. Some states recognize POD designations on all accounts; others have restrictions. Your bank's policies also matter—some banks make it easy to name a beneficiary, while others require a specific form or in-person visit.
The state that matters is the state where the bank is located, not where the account owner lived. If you have an account at a bank headquartered in New York, New York's rules apply, even if you live in California. Call your bank and ask what options are available for your account type and state.
If you are the executor of an estate and need to access a deceased person's account, ask the bank what documents they require. Most banks ask for the death certificate, a copy of the will or court order, and proof of your identity. Some require a certified copy of the death certificate. The bank will tell you exactly what they need before you gather documents.
What happens if there is a will but no beneficiary designation
A will does not override a beneficiary designation on a bank account. If the account has a named POD or TOD beneficiary, that person receives the money regardless of what the will says. The will controls only assets that do not have a beneficiary designation—such as a house, car, or account with no named beneficiary.
This is a common source of conflict. Someone writes a will leaving everything equally to three children, but the bank account has only one child named as POD beneficiary. That child receives the account balance outside probate, and the other two children receive nothing from that account. The will cannot change it.
If you want your estate divided differently than your current beneficiary designations allow, update the designations now. Beneficiary designations take effect immediately and override the will. This is one reason to review your accounts and designations every few years.
How to avoid probate for your bank accounts
The simplest step is to name a POD or TOD beneficiary on every bank account you own. Call your bank, ask for the beneficiary designation form, and complete it. You can name a spouse, adult child, trusted friend, or charity. You can name multiple beneficiaries and split the balance among them by percentage. There is no cost, and it takes minutes.
If you prefer not to name an individual, some banks allow you to name a trust as the POD beneficiary. This is useful if you have a revocable living trust and want all your accounts to flow into it. Ask your bank whether they accept trusts as POD beneficiaries and what documentation they need.
If you have a joint account and want to keep it that way, confirm with your bank that it is held as joint tenants with rights of survivorship, not tenants in common. If it is tenants in common and you want to change it, ask the bank how to re-title the account.
Review your designations every three to five years or after a major life event—marriage, divorce, birth of a child, or significant change in your wishes. If a named beneficiary dies, update the account immediately. If you do not, the bank may pay the balance to that person's estate, which defeats the purpose of naming them.
Frequently Asked Questions
Can I name my estate as the POD beneficiary?
Technically yes, but it defeats the purpose. Naming your estate as the beneficiary sends the account through probate anyway, because the funds become part of the probate estate. Name an individual or trust instead to keep the account out of probate.
What if the POD beneficiary is a minor?
The bank will not release the funds to a minor. You can name a minor as beneficiary, but the funds will be held until the minor reaches the age of majority (usually 18 or 21, depending on state). Alternatively, name an adult to hold the money in trust for the minor, or name a trust as the beneficiary and specify in the trust document how the money should be managed for the minor.
Does a POD account go through probate if the beneficiary dies before I do?
No, but the funds do not go to the beneficiary's heirs automatically. If you do not update the designation after the beneficiary dies, the account will go through your probate when you die, because there is no valid beneficiary. Update the designation as soon as you learn that a named beneficiary has died.
Can creditors take money from a POD account?
In most states, no. A POD account passes directly to the named beneficiary and is not part of the probate estate, so creditors cannot make claims against it. However, some states have exceptions for certain types of debt, such as taxes or child support. Ask an attorney in your state if you are concerned about creditor claims.
If I have multiple accounts at the same bank, do I name a beneficiary on each one?
Yes. Each account is separate, and each one needs its own beneficiary designation. You can name the same person as beneficiary on all accounts, or different people on different accounts. The bank will not assume you want the same designation across all accounts.