One of the most common questions we hear after someone passes away is, “Do we have to go through probate just to access a bank account?” It’s a fair concern. Families often need immediate access to funds for funeral expenses, mortgage payments, or other pressing financial matters. The answer depends on how the account was set up and whether any legal designations were made before the person’s death.
If you’re dealing with this situation in Texas, here’s what you need to know.
Accounts That Don’t Require Probate
Not every bank account has to go through the probate process. In fact, several types of accounts can transfer directly to another person without court involvement, as long as specific steps are taken in advance.
These include:
- Payable-on-Death (POD) Accounts:
If the deceased named a beneficiary on the account, that person can usually claim the funds with just a death certificate and a valid ID. The money doesn’t go through probate at all. - Joint Accounts with Right of Survivorship:
If the account was held jointly and included a right of survivorship, the surviving co-owner becomes the full owner of the account immediately upon death. - Trust-Owned Accounts:
If the account was titled in the name of a revocable living trust, it passes according to the terms of that trust, not through probate.
In these cases, the bank handles the transfer directly, and court filings aren’t necessary. However, the bank will require documentation, and each institution may have its own internal policies about processing timelines.
When Probate Is Required
If the account was only in the deceased person’s name and did not have a beneficiary designation, it will likely be considered a probate asset. That means:
- The account will be frozen,
- Access won’t be granted until someone is legally appointed as the executor or administrator, and
- Funds can only be distributed under court supervision.
This situation is common when no estate planning was done in advance. While not ideal, it’s something our team handles regularly, and there are ways to keep the process as smooth and efficient as possible.
What About Small Balances?
In Texas, if the value of the entire estate (excluding homestead and exempt property) is under $75,000, the family may qualify for a Small Estate Affidavit. This shortcut allows eligible heirs to claim bank accounts and other assets without a full probate proceeding.
However, it only applies in limited situations, and not all banks accept it without question. That’s where having the right legal guidance can make a real difference.
Avoiding Probate Headaches in the Future
If you’re planning, the simplest way to ensure your loved ones can access your bank account quickly is to add a POD designation or include the account in a living trust. These are straightforward tools that can spare your family time, cost, and frustration later on.
If you’re currently managing a loved one’s affairs and are unsure how the bank account is set up or you’re running into red tape, don’t guess your way through it.
Need Help Accessing a Bank Account After a Loved One’s Death?
Our team at Forbes & Forbes Law Office has helped countless families across Texas handle probate with confidence. If you’re trying to figure out whether you need probate or how to move forward, contact us today to schedule a consultation. We’ll walk you through your options and help you take the next step with clarity.
