Do Joint Bank Accounts Have Right of Survivorship?

A joint bank account is a type of bank account that is owned by two or more people. Joint bank accounts can be a convenient way to manage money with a spouse, family member, or friend. However, it is important to understand the legal implications of joint bank accounts, including the right of survivorship.

Right of Survivorship

The right of survivorship is a legal principle that states that when one joint owner of a property dies, the other joint owners automatically become the sole owners of the property. This means that the deceased joint owner’s share of the property does not pass through probate, which can save time and money.

Joint Bank Accounts and Right of Survivorship

In most states, joint bank accounts have a right of survivorship. This means that if one joint owner dies, the other joint owner(s) will automatically become the sole owner(s) of the account. This is true even if the deceased joint owner had a will that stated otherwise.

However, there are some exceptions to this rule. For example, in some states, if a joint bank account is created between a husband and wife, the surviving spouse may not have a right of survivorship if the deceased spouse had children from a previous marriage.

Benefits of Joint Bank Accounts

There are several benefits to having a joint bank account, including:

• Convenience: Joint bank accounts can make it easy to manage money with a spouse, family member, or friend. Both joint owners can deposit and withdraw money from the account, and either joint owner can write checks on the account.
• Avoidance of probate: As mentioned above, the right of survivorship can help to avoid probate. This can save time and money, and it can also help to ensure that your wishes are carried out.
• Protection from creditors: In some cases, joint bank accounts can help to protect assets from creditors. For example, if one joint owner has a debt, the creditors cannot seize the other joint owner’s share of the account.

Drawbacks of Joint Bank Accounts

There are also some drawbacks to having a joint bank account, including:

• Lack of control: Both joint owners have equal access to the account, which means that either joint owner can withdraw money or write checks without the other joint owner’s consent.
• Potential for disputes: Joint bank accounts can lead to disputes between the joint owners. For example, one joint owner may withdraw all of the money from the account without the other joint owner’s knowledge or consent.
• Estate planning complications: Joint bank accounts can make estate planning more complicated. If one joint owner dies, the other joint owner may not be able to access the account without going through probate.

Conclusion

Joint bank accounts can be a convenient way to manage money with a spouse, family member, or friend. However, it is important to understand the legal implications of joint bank accounts, including the right of survivorship. If you are considering opening a joint bank account, it is important to discuss your options with an attorney.

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