Does my Joint Bank Account Go Through Florida Probate?

The easiest way to tell if an asset must go through the Florida probate process after a loved one has passed away is to determine whether the asset was held in your loved one’s name only. Generally, any property that was under the sole ownership of a person who has passed away will have to go through the probate process. However, there are a few exceptions that could allow bank accounts to pass outside of probate.

The time immediately after a loved one’s passing can be chaotic, confusing, and fraught with emotion. Carefully planning and executing an estate plan well in advance can save your loved ones from unnecessary stress and confusion. If you have questions on any probate issue, or wish to discuss your own wills or probate situation, contact an esteemed wills & probate attorney at Suncoast Civil Law.

Bank Accounts During Florida Probate

The Florida probate process is used to gather, record, and retitle assets that had been owned by a deceased person. This is done so that the estate can be settled and any remaining assets can legally be passed on to their new owners. Probate assets generally include assets that are in the decedent’s own name, with no beneficiary designation. However, some assets, including bank accounts, can allow another person to inherit directly if the principal owner dies without putting the account through probate.

Bank accounts that could potentially avoid going through Florida probate include:

• Accounts with a named beneficiary. When opening a bank account you can add a payable on death (POD) designation to your account. The effect is that when the principal owner passes away, the asset is distributed to the designated beneficiary upon the owner’s death. This transfer avoids the need for probate.
• Shared accounts between spouses. Florida probate laws allow married couples the “right of survivorship” on jointly-held assets. This means that any property that is held in both spouses’ names will automatically pass to the surviving spouse without the need for probate.
• Joint accounts. A bank account that is held between “joint tenants with rights of survivorship” allows for the surviving co-owner to receive a deceased co-owner’s share, without the account going through probate.
• Accounts naming a trust as beneficiary. If done correctly, it is possible to set up a trust and name that trust as a beneficiary on a bank account. If the owner of the account passes away, the beneficiary designation could put the trust into the position to take control of the account as the successor trustee.

Should All Accounts Have Joint Owners?

Confer with a trusted wills & probate attorney in order to make sure your assets end up in the right place upon your death. While specific circumstances might arise that make it advisable to have all assets held jointly, it is usually not the best solution. There are many strategies to avoid unnecessarily lengthy or involved probate processes. It is wise to discuss what your best options might be with your own trusted legal counsel.

Contact Suncoast Civil Law

Individuals can prevent unnecessary legal complications in Florida’s probate process by proactively structuring financial accounts, and building an estate plan that suits their needs. For expert legal advice tailored to your own unique circumstances and estate, contact an experienced Sarasota wills & probate attorney at Suncoast Civil Law.

Sources:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0732/Sections/0732.101.html

floridabar.org/public/consumer/pamphlet026/