Who Gets the Bank Account Funds?
How a deceased person’s bank account will be treated after they pass will depend on how they owned the account. Several different questions need to be answered in order to determine who gets the bank account funds, including:
- Was the deceased person the sole owner of the account?
- Is there a named beneficiary?
- Did the decedent have a will?
As with most estate planning matters, you can have full control over who will get your bank account funds when you pass by creating an estate plan. However, individuals who pass without an estate plan may have their assets distributed in unintended ways.
Account Ownership and Beneficiary Designations
If you owned the account jointly with another person or named a beneficiary, the account will pass to that person. This is true even if you did not have a will.
Bank accounts and certain other assets with joint owners or designated beneficiaries are transferred outside of the probate process. If your total probate assets are under North Carolina’s threshold for small estates, your estate may qualify for a simplified probate procedure as well.
Naming a beneficiary for your bank accounts and retirement accounts is a simple way to keep assets out of probate and clearly designated you should receive the accounts. However, you should still have a will to control other types of property.
Bank Accounts That Go Through Probate
If a bank account has no joint owner or designated beneficiary, it will likely have to go through probate. The account funds will then be distributed—after all creditors of the estate are paid off—according to the terms of the will.
When a person passes without a will, North Carolina’s intestacy laws control who receives their property. Assets typically pass to a surviving spouse and the decedent’s children first. If a decedent is unmarried and childless, assets with go to the next of kin, beginning with parents, then siblings, and finally more distant relatives. This situation is not ideal because the decedent does not have any control over who receives their property.
To control who will get your assets, have an estate planning attorney draft your will and review your situation to determine if any further estate planning strategies are needed.
Contact Our Experienced Estate Planning Lawyers Today
King Law handles estate planning matters in North and South Carolina, including wills, trusts, and estate administration. Follow us on Facebook for more information and updates on legal issues.
As an expert in estate planning and probate matters, I have a deep understanding of the intricacies involved in managing a deceased person's assets, particularly in scenarios concerning bank accounts and beneficiary designations. My expertise spans various aspects, including estate planning strategies, probate procedures, asset distribution laws, and the implications of intestacy.
Regarding the article on bank account funds after a person's passing, it delves into several critical concepts:
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Ownership of the Bank Account: The ownership structure of the bank account plays a pivotal role. If the deceased person was the sole owner, the account's fate is determined differently than if it was jointly owned or had a designated beneficiary.
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Beneficiary Designations: Accounts with named beneficiaries or held jointly are typically transferred directly to the named individual or joint owner, bypassing the probate process. This design allows for a seamless transfer of assets outside of the legal complexities of probate.
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Probate Process: Bank accounts without joint ownership or designated beneficiaries often undergo the probate process. During probate, the assets are distributed following the terms of the will or, in the absence of a will, according to the state's intestacy laws.
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Intestacy Laws: When a person passes away without a will, intestacy laws govern asset distribution. In North Carolina, this might involve assets passing to surviving spouses, children, or other next of kin, following a specific hierarchy laid out by the state.
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Estate Planning Importance: The article emphasizes the importance of estate planning to control asset distribution. It highlights the significance of having a will and working with an estate planning attorney to ensure one's wishes are carried out efficiently and to explore additional strategies for comprehensive estate planning.
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Legal Assistance: The article concludes by advising individuals to seek guidance from experienced estate planning lawyers, like those at King Law, who specialize in wills, trusts, and estate administration. This reinforces the need for professional legal counsel in navigating estate planning complexities.
Understanding these concepts is crucial for anyone involved in estate planning or dealing with the aftermath of a loved one's passing to ensure proper asset distribution in accordance with the deceased person's wishes or applicable laws.
Should you require further clarification or guidance on estate planning matters, I'm here to assist.
