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Will Banks Release Money Without Probate in Florida?

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Tampa Probate Lawyer / Blog / Uncategorized / Will Banks Release Money Without Probate in Florida?

Will Banks Release Money Without Probate in Florida?

Avoiding Probate for Bank Accounts in Florida: Understanding the Exceptions and Considerations

In the State of Florida, the probate process is generally required for assets, including bank accounts, above a certain value, irrespective of whether the deceased left behind a will. However, there are exceptions to this rule, which can help bank accounts avoid probate. This article explores the circumstances under which bank accounts may bypass probate and highlights the advantages and disadvantages of using a Payable on Death (POD) account. It also emphasizes the importance of consulting a probate attorney to make informed decisions about estate planning.

Exceptions for Bank Accounts to Avoid Probate: 

Named Beneficiary: Bank accounts with named beneficiaries can skip the probate process. If the account owner designated a beneficiary when opening the account, the assets will be directly transferred to the named beneficiary upon the owner’s passing, bypassing probate.

Jointly Held Bank Accounts: Spousal joint accounts come with a “right of survivorship” feature. When one spouse passes away, the surviving spouse gains immediate access to all assets in the joint account, including bank funds, without the need for probate.

Trust Beneficiaries: Bank accounts can be designated as trust assets with a primary beneficiary (the account owner) and a secondary beneficiary. Upon the account owner’s death, ownership of the account transfers immediately to the secondary beneficiary, who can access the funds without going through probate.

Payable on Death (POD) Accounts:

POD accounts are set up by the account owner during their lifetime, allowing them to designate a beneficiary to receive the account’s assets directly upon their death. POD accounts effectively avoid probate proceedings. However, if unpaid creditors have legitimate financial claims, they may still make claims on the POD account.

Disadvantages of POD Accounts:

While POD accounts offer the advantage of quick access to funds for beneficiaries, there are potential drawbacks to consider:

Beneficiary Control: The designated beneficiary may refuse to distribute the inheritance to other intended beneficiaries, leading to family conflicts.

Outliving Beneficiary: If the account owner outlives the designated beneficiary, the POD account will be subject to probate, defeating its purpose.

Seek Professional Advice: 

The decision to set up a POD account or explore other probate-avoidance options requires careful consideration. Consulting a probate attorney is essential to understand the nuances and consequences of each option thoroughly. An experienced attorney can offer personalized advice tailored to individual circumstances and help strike a balance between quick access to funds and preserving the estate’s integrity.

In Florida, certain exceptions allow bank accounts to avoid probate, providing beneficiaries with quicker access to funds after the account owner’s passing. POD accounts are a popular choice, but they come with potential pitfalls that warrant careful consideration. To navigate the complexities of estate planning and probate avoidance successfully, seeking guidance from a probate attorney is crucial. By doing so, individuals can make well-informed decisions that align with their wishes and protect their loved ones’ interests.

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