Bank accounts

26 Jun 2025 · 1 min

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In this brief instructional video, the speaker explains what happens to a bank account after the owner’s death under four common ownership structures. If the account is in the owner’s sole name with no designated beneficiary, it typically goes through probate and the bank may freeze the funds. If a beneficiary is named, the beneficiary receives the money directly, bypassing probate. However, if the named beneficiary predeceases the account holder and the designation does not include contingent heirs, the account reverts to probate. Finally, when the account is owned by a trust, the successor trustee steps in after death and distributes the assets to the trust’s beneficiaries according to the trust terms.

Chapters

What is going to happen to your bank account when you exit the planet? Let's say you own it in your own name with no beneficiary. That account is most likely going to have to go through probate and more than likely the bank will freeze it. Next, let's say it's an account in your name alone and you have a beneficiary on it. They will get the money, no probate. What if that beneficiary that you named on the account is not alive? Unless that designation was set up to include their descendants, that account is back in probate court. Your account is held in the name of your trust, your successor trustee comes in and distributes that money to your beneficiaries.