Yes — it’s possible to legally avoid probate on bank accounts, especially with the right estate planning strategies.
For expats and high-net-worth individuals, failing to plan properly can lead to frozen accounts, delays in accessing funds, and expensive court procedures.
This article answers key questions and explores practical options, addressing:
- When someone dies what happens to bank account?
- Does money in a joint bank account go through probate?
- Can you access a bank account without probate?
- What documents are needed to close a bank account without probate?
These insights can help you streamline your estate plan and ensure quick, hassle-free access to liquid assets and avoid probate.
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What Happens to Bank Accounts When Someone Dies?
When a person dies, their bank accounts are generally frozen until the rightful heirs or executors present the necessary legal documentation to access the funds.
This process ensures the money is properly distributed according to the will or intestacy laws if no will exists.
If a beneficiary is named, the bank can typically release the funds directly to that individual without requiring probate. This is one way to avoid probate.
However, when no beneficiary is named, the account becomes part of the deceased’s estate.
In this case, the bank will usually require a grant of probate (or letters of administration if there’s no will) before releasing the funds.
This can delay access, especially if the estate is complex or contested.
How to Avoid Probate on Bank Accounts
Designate a Beneficiary to Avoid Probate
One of the most straightforward ways to avoid probate on bank accounts is to designate a beneficiary through a Payable-on-Death (POD) or Transfer-on-Death (TOD) arrangement if your jurisdiction permits it.
With a POD or TOD designation, the account holder names a beneficiary who will automatically receive the funds upon their death.
This transfer happens outside the probate process, saving time and legal costs.
These designations are commonly used in the US, but availability varies by country and even by bank.
For expats and high-net-worth individuals with multi-jurisdictional banking, it’s important to check whether this option is allowed in your country of residence or the country where the bank account is held.
Open a Joint Account with Right of Survivorship
In this setup, ownership automatically passes to the surviving account holder upon death, bypassing probate entirely.
Does money in a joint bank account go through probate?
In many cases, money in a joint bank account does not go through probate, especially when the account includes a right of survivorship clause.
This setup allows the surviving account holder to automatically inherit the funds without court involvement.
Joint accounts with rights of survivorship are commonly used as an estate planning tool because they allow for seamless access to funds after one account holder dies.
The surviving owner simply provides a death certificate to the bank, and the account continues in their name.
However, not all joint accounts are structured this way.
If the joint owner is not a spouse or has no real financial contribution to the account, it may trigger inheritance tax issues or legal disputes.
Always confirm the account type and ensure the intended survivorship rights are clearly documented to avoid delays or complications.
Use a Trust to Hold Bank Accounts
When a bank account is retitled in the name of a trust, it no longer forms part of your probate estate.
Instead, upon your death, the designated successor trustee can access and distribute the funds according to the terms of the trust without court involvement.
This makes the process faster, more private, and often more tax-efficient. Trusts also offer flexibility.
You maintain full control of the account while alive and mentally capable, and you can amend or revoke the trust as your circumstances change.
Unlike joint accounts or simple beneficiary designations, trusts can accommodate multiple heirs, staggered distributions, or complex family arrangement, ideal for high-net-worth individuals or expats with assets in different jurisdictions.
Can Banks Release Funds Without Probate?
In certain cases, banks can release funds without probate, but it largely depends on the value of the account and the institution’s internal policies.
Some jurisdictions allow access to funds through a small estate affidavit—a simplified legal document that authorizes the release of assets without going through formal probate.
This option is typically available when the estate falls below a specified threshold, which varies by country and even by bank.
For example, a bank might waive probate requirements if the account holds less than £5,000 or another local equivalent.
To improve the chances of a smooth release without probate, it helps to notify the bank early, provide a death certificate, and inquire directly about their small estate or expedited release process.
How Much Do Banks Charge for Probate?
When probate is required, costs can vary widely depending on whether the process is handled by a bank, the court, or an independent legal advisor.
Bank-administered probate typically comes with higher fees.
Many banks offer probate or estate administration services, especially if they were named as executor in the will.
Their fees are often calculated as a percentage of the estate, commonly around 4%, depending on complexity and jurisdiction.
This may include tasks like identifying assets, settling debts, paying taxes, and distributing funds.
By contrast, court probate fees are usually more transparent and set by government regulation.
These might include filing fees, valuation charges, and legal costs; generally much lower than bank-managed probate, but they often require you to appoint a solicitor or manage the paperwork yourself.
Executor fees (whether the executor is an individual or institution) can also apply.
In many jurisdictions, private executors can claim reasonable compensation, but banks may charge fixed or percentage-based rates, especially for international estates or those involving real estate, trusts, or complex tax issues.
Before naming a bank as your executor, review their fee schedule.
In many cases, appointing a trusted professional or family member and providing legal support when needed can be more cost-effective.
Can an Executor Withdraw Money From a Deceased Bank Account?
Once probate is granted, or the equivalent legal authority in the relevant jurisdiction, the executor or administrator gains the legal right to access and manage the deceased person’s bank accounts.
What an executor can do:
- Withdraw funds from the deceased’s account to settle debts, taxes, and final expenses.
- Transfer funds into an estate account for distribution to beneficiaries.
- Pay for funeral and administrative costs, as long as these are clearly recorded and justified.
What an executor can’t do:
- Use estate funds for personal benefit.
- Make early distributions before all liabilities are resolved.
- Operate the account as if it were their own prior to receiving legal authority.
It’s also worth noting that banks will freeze personal accounts upon notification of death, and they will only release funds to an executor after reviewing official probate or estate documents.
In some cases, limited access may be allowed before probate for funeral expenses, but this varies by jurisdiction and bank policy.
How Do I Close a Bank Account Without Probate?
Closing a deceased person’s bank account without going through probate is possible under specific conditions, especially when the estate is small or when proactive planning was in place.
Steps if the estate qualifies as small or is exempt:
- Check the bank’s probate threshold, which varies by institution and jurisdiction. Many banks allow access to accounts below a certain value without probate.
- Provide a small estate affidavit, if applicable in your location.
- Submit supporting documentation, such as a death certificate, ID, and proof of relationship.
Check if the account was structured to bypass probate through joint accounts with rights of survivorship, POD or TOD designations, or trust-held accounts.
In order to avoid probate on bank accounts, it comes down to smart planning by using tools like joint accounts, beneficiary designations, or trusts.
The earlier you act, the easier it is to protect your heirs from delays, legal hurdles, and unnecessary costs.
For best results, review your accounts regularly and seek legal guidance based on your country of residence.
Pained by financial indecision?
Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.
