How to Pass a Bank Account to an Heir When Someone Passes Away

When a loved one passes away, one of the first practical concerns that often arises is: What happens to their bank account? Whether you're planning your own estate or handling the affairs of a deceased family member, understanding how bank accounts transfer after death is key to avoiding legal delays, family conflict, and unnecessary probate costs.

This guide walks through the common methods for passing a bank account to an heir and how to plan ahead to make the process as smooth as possible.

What Happens to a Bank Account After Death?

When someone dies, their bank accounts are typically frozen until the legal right to access them is established. This means no one—not even close family—can withdraw funds unless they’re a co-owner or legally appointed representative.

How the money is passed on depends largely on how the account was set up and whether there are any estate planning documents in place.

Ways to Pass a Bank Account to an Heir

There are several legal methods to transfer a bank account upon death, and the best option depends on your personal situation.

A. Payable-on-Death (POD) Designation

A Payable-on-Death (POD) account allows you to name a beneficiary who will automatically receive the funds when you pass away—without going through probate.

• You retain full control of the account during your lifetime.
• After death, the beneficiary only needs to provide a death certificate and ID to claim the funds.
• Set up at your bank with a simple form.

Best for: Quick and easy transfers to a specific individual.

B. Joint Bank Account with Right of Survivorship

If the bank account is jointly owned (e.g., with a spouse or adult child) and includes right of survivorship, the account automatically transfers to the surviving owner.

• No probate needed.
• Immediate access for the co-owner.
• Not recommended if you don’t want the co-owner to access the account during your lifetime.

Caution: Adding someone as a joint owner gives them equal access to your money while you’re alive.

C. Living Trust

A revocable living trust can hold bank accounts and distribute them according to your wishes.

• You can name a trustee to manage the account during your lifetime or if you're incapacitated.
• At your death, the funds pass to your named beneficiaries without probate.
• More privacy and control than a will.

Best for: More complex estate planning or multiple heirs.

D. Last Will and Testament

If there is no POD designation or trust, the bank account will typically go through probate as part of the estate.

• A will names who should receive the funds.
• Probate can take months, and access to funds is delayed.
• If no will exists, state law determines who inherits the account.

What Documents Are Needed to Claim a Deceased Person’s Bank Account?

To access a deceased person’s bank account, the heir or executor will usually need:

• Death certificate
• Valid ID
• Proof of beneficiary status (e.g., named POD beneficiary)
• Letters testamentary (if handling the estate through probate)
• Copy of the will (if applicable)

Each bank has its own procedures, so contacting the bank directly is essential.

How to Plan Ahead to Avoid Probate Delays

If you want to make sure your bank account passes smoothly to your chosen heir:

• Add a POD beneficiary to each bank account.
• Consider using a trust if you want more control.
• Avoid adding a co-owner unless you fully trust them.
• Keep your estate documents up to date and easy to find.
• Make sure your executor or family knows where your account information is stored.

Final Thoughts: Make Bank Account Transfers Easy for Your Heirs

Passing on a bank account doesn’t have to be complicated—but it does require forethought. Taking a few steps now can save your loved ones time, stress, and legal headaches down the road. Whether you use a POD designation, joint account, or trust, the goal is the same: to ensure your money goes to the right people as efficiently as possible.

Ready to make a plan? Give us a call.