Don’t Let Your Bank Accounts Get Stuck in Probate Court 

Many Florida families focus on their homes or vehicles when thinking about estate planning—but bank accounts are often overlooked. Without the proper planning, even a modest checking or savings account can become trapped in probate, delaying access to funds and creating unnecessary legal fees. 

At Lumsden Law, we’ve helped countless Florida residents simplify their estate plans by designating their bank accounts properly. In this guide, we’ll show you how to avoid probate court, protect your loved ones, and take full advantage of Florida’s beneficiary designation options—without unnecessary complexity. 

What Happens to Bank Accounts When You Die? 

Unless you’ve named a beneficiary or used a trust, most individual bank accounts become part of your probate estate when you pass away. 

That means: 

• Your loved ones can’t immediately access the funds. 

• The account is frozen until the probate process is complete. 

• The funds may be used to pay off creditors before being distributed to heirs. 

• Court fees, delays, and disputes may arise if there’s no clear plan. 

Fortunately, there are simple tools you can use to avoid this outcome. 

Use Beneficiary Designations to Skip Probate 

Payable-on-Death (POD) Accounts 

A POD designation allows you to name one or more beneficiaries who will automatically receive the funds in your account upon your death—no court involvement needed. 

• You retain full control of the account during your lifetime. 

• After your death, the bank transfers the balance to your named beneficiaries. 

• You can change the beneficiaries at any time by completing a form with your bank. 

POD designations can be used on: 

• Checking accounts 

• Savings accounts 

• Money market accounts 

• Certificates of deposit (CDs) 

Transfer-on-Death (TOD) Designations 

While TOD designations are more commonly used for investment and brokerage accounts, they serve a similar purpose. Your named beneficiaries inherit the account outside of probate. 

• Easy to set up through your financial institution 

• Can include contingent beneficiaries 

• Helps protect privacy and prevent family disputes 

Joint Ownership vs. POD: Which Is Better? 

Many people use joint ownership (such as a joint checking account with a child or spouse) to avoid probate—but it’s not always the best approach. 

Pros of Joint Accounts: 

• Surviving owner automatically inherits the funds 

• Immediate access to the account 

• No court delay 

Cons of Joint Accounts: 

• Shared access means the other party can withdraw money anytime 

• May expose the account to creditors or legal judgments of the joint owner 

• Can create family conflict if other heirs feel excluded 

Recommendation: For most Florida families, a POD designation provides more control and privacy than joint ownership—without the legal risks. 

Should You Use a Trust for Bank Accounts? 

In some cases, especially if you have a larger estate or complex wishes, placing your bank accounts into a revocable living trust may be the best option. 

Benefits of using a trust for bank accounts: 

• Avoids probate 

• Allows you to name alternate beneficiaries 

• Ensures funds are distributed according to your trust instructions 

• Offers protection in case of incapacity 

At Lumsden Law, we often help clients decide whether a simple POD designation is sufficient or whether a trust-based plan offers better protection. 

Florida Rules on Bank Accounts and Probate 

In Florida, bank accounts without a beneficiary or co-owner usually become part of the deceased’s probate estate. 

Important legal points: 

• The personal representative named in your will (or appointed by the court) is responsible for gathering and managing the funds. 

• If there is no will, Florida intestate laws determine who receives the funds. 

• Even small accounts can be frozen—leaving surviving family members unable to access money for bills, funeral costs, or daily expenses. 

That’s why proactive planning is so important. 

Common Mistakes to Avoid 

Here are a few pitfalls we see far too often—and how you can avoid them: 

❌ No Beneficiaries Listed 

If your account doesn’t list a POD or TOD beneficiary, it may automatically be subject to probate—even if you have a will. 

❌ Outdated Beneficiary Forms 

A divorced spouse or deceased relative may still be listed on your bank forms. Be sure to review and update your designations regularly. 

❌ Conflicts Between Will and Beneficiary Designations 

Your beneficiary designations override your will. If your will says one thing and your bank forms say another, the bank form wins. 

❌ Only Listing One Heir 

It’s a good idea to list alternate or contingent beneficiaries, in case your primary beneficiary is unable to inherit. 

What About Business Accounts? 

If you own a small business in Florida, make sure your business checking accounts are part of your estate plan. Options include: 

• POD designations 

• Business succession planning 

• Trust ownership 

Lumsden Law helps business owners protect their assets and ensure smooth transitions—both for financial accounts and the business as a whole—by using tools like Payable-on-Death designations, trusts, and Rights of Survivorship where appropriate.
Call to Action 

Don’t let your hard-earned savings get trapped in the court system. With just a few simple steps, you can make sure your loved ones have immediate access to your bank accounts—without court delays or legal headaches. 

🏦 Secure your accounts. Protect your family. Avoid probate. 
📞 Call Lumsden Law today to review your estate plan. 
🌐 Visit lumsdenlawfirm.com to schedule your consultation. 

We proudly serve clients in Orlando, Winter Park, and throughout Central Florida. 

FAQs:

1. What happens to my bank account if I die without a beneficiary in Florida?
If no beneficiary is named, your bank account will likely go through probate. This can freeze access to funds and delay distribution to your heirs, even for small accounts.

2. How can I avoid probate for my bank accounts in Florida?
You can avoid probate by setting up a Payable-on-Death (POD) or Transfer-on-Death (TOD) designation. These allow your funds to pass directly to named beneficiaries without court involvement.

3. Is it better to use joint ownership or POD to avoid probate?
While joint ownership offers immediate access, it also gives the co-owner legal rights during your lifetime. A POD provides more control and avoids exposing your account to the joint owner’s debts or liabilities.

4. Should I put my bank accounts in a trust instead of using a POD?
A revocable living trust may be better if you have a large estate, multiple beneficiaries, or want added protection in case of incapacity. It also avoids probate and allows more detailed instructions than a simple POD.