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Under Alabama probate laws, many assets must undergo probate following a person’s death. This means the state must account for the distribution of any real estate, vehicles, jewelry, artwork, furniture, and other belongings of the deceased to surviving family members.
But you may be wondering: Do joint bank accounts go to probate? This is a question your family might face when you’re working through the probate process after losing a loved one.
The answer to this question isn’t always as straightforward as you might like. Below, find out when joint bank accounts do and don’t have to go to probate.
When Joint Bank Accounts Do Not Go to Probate
Generally speaking, the answer to the question, “Do joint bank accounts go to probate?” is “no.” The majority of families won’t have to worry about joint bank accounts going through the probate process when a loved one dies.
Even if a loved one made no specific arrangements for a joint bank account during estate and financial planning, it shouldn’t have to go to probate. The other party listed on the bank account will have a right of survivorship.
This legal principle ensures that a joint bank account automatically transfers to the surviving owner when the other owner dies. It’s a quick and easy way to manage a loved one’s joint bank account without going through the probate process.
When Joint Bank Accounts Do Go to Probate
More often than not, you won’t even have to consider the question, “Do joint bank accounts go to probate?” The bulk of these joint bank accounts will not have to go through the probate process thanks to the concept of right of survivorship.
However, there are rare instances in which joint bank accounts will need to go to probate. Here is one such example:
- Several parties are all listed as the owners of a bank account.
- These parties all retain individual ownership of a bank account, but none have a right of survivorship.
- The bank account in question is regarded as having “tenants in common.”
In this case, a loved one’s portion of a bank account won’t automatically transfer to anyone since there isn’t a specific beneficiary designation. Instead, like other assets, it must go through the probate process.
It typically ends up reaching a person’s beneficiaries. But first, it may be subjected to creditor claims, which could decrease its value or even wipe it out altogether.
What To Do When Joint Bank Accounts Go to Probate
When the answer to the question, “Do joint bank accounts go to probate?” is “yes,” your family should ensure it properly puts a joint bank account through probate. This may be a time-consuming process, but it can prevent further complications with a joint bank account partially owned by your loved one.
Take the following steps to put a joint bank account and other assets through probate:
- Begin by filing a probate petition and including important information, such as a copy of a loved one’s will and other key estate planning documents.
- Appoint an executor for a loved one’s will and notify heirs and creditors about their death.
- Take an accurate inventory of a loved one’s assets and have them all appraised to calculate their total value.
- Use a loved one’s assets to cover the costs associated with any outstanding debts or taxes.
- Distribute a loved one’s assets based on their final wishes as listed in their will or follow intestate succession laws to distribute them to the appropriate heirs and beneficiaries.
- Close a loved one’s estate once all their assets have been distributed, and nothing remains in it.
You may skip this process when the answer to the question, ”Do joint bank accounts go to probate?” is “yes.” Otherwise, you’ll have no choice but to patiently work through it.
How To Access Probate Loans When Joint Bank Accounts Go to Probate
Did you discover that the answer to the question, ”Do joint bank accounts go to probate?” is “yes” for your loved one? You might worry about what you’ll do while waiting for the funds from a loved one’s joint bank account to be distributed.
Thankfully, you can navigate around this issue by gaining access to probate loans through a company like Rockpoint Probate Funding. They’ll enable you to acquire an inheritance you’re set to receive from a loved one’s estate following the probate process.
Probate funding is an excellent option for those who would prefer (or were expecting) to quickly secure inheritances from loved ones. Rockpoint Probate Funding understands that unforeseen complications can arise and makes it simple for you and your family to apply for a probate loan and have it deposited directly into your bank account.
Contact Us If You Could Benefit From Applying for a Probate Loan
Hopefully, you’ll hear the answer you’re looking for when you wonder, “Do joint bank accounts go to probate?” Many of these bank accounts aren’t subject to the probate process, saving families a lot of time and allowing them to access money quickly.
If, however, your family needs to put a loved one’s joint bank account through probate, Rockpoint Probate Funding will be here to help. We can set you up with the probate loan you need now, so you aren’t required to wait for months or even years for funds to arrive.
Reach out to us at (888) 263-8588 and provide us with probate court documents to see if you qualify for a probate loan.
