What Happens to Your Bank Account When You Die?

What Happens to Your Bank Account When You Die?

Nicole Spector   Thu, January 27, 2022

What happens after we die? Science and religion have long debated this question on a metaphysical level, while accountants and other finance professionals deal with the issue in an administrative and legal sense. They — possibly along with estate attorneys, judges and even debt collectors — swoop in to sort out the aftermath of your monetary life. This includes dealing with your bank account and figuring out exactly where the remaining funds go.

The specifics of what happens to your bank account when you die depends on how you left your financial affairs and the nature of the type of account you held.

“First, it is important to note that what happens to your bank account when you die will depend on a host of factors,” said Mariah Street, CEO and managing attorney at Legacy Street Law. “In other words, what happens to one person’s bank account may not be the same thing that happens to another person’s bank account.

There will never be a ‘this is exactly what is going to happen to every person’s account no matter what’ process; however, the process of determining what happens to that account is always the same.”

Step 1: Determining Who Holds Title To Your Account

“The first thing that will be examined in determining what happens to your bank account when you die is who or what holds title to that account,” Street said. “Basically, we’ll need to see whose name is on the account. Did you and your spouse have a joint account, which means that both of you are joint owners?

If so, then that account will likely go directly to the surviving spouse. Did you have a trust in place that is the owner of that account? If so, then the funds from that account will be distributed according to the terms of the trust.”

Step 2: Locating Who Is ‘Payable On Death’

“If you did not have a joint owner of the account when you died or a trust wasn’t the owner of the account, the next thing that will be asked is: Did you have some sort of ‘payable on death’ directive in place for that bank account?” Street said.

To continue reading, please go to the original article here:

https://news.yahoo.com/happens-bank-account-die-120026231.html