Probate & Payable on Death Explained: Who Inherits the Bank Account?

When a family member falls ill, questions about their finances often arise. A common scenario involves a bank account, an unmarried partner (like a girlfriend of 12 years), and a concerned family.

If you are asking, "Does my brother's girlfriend get the money in his account if he passes away?" the answer lies in understanding two critical legal concepts: Payable on Death (POD) and Probate.

What is "Payable on Death" (POD)?

A Payable on Death (POD) recipient is essentially a beneficiary listed specifically on a bank account.

How POD Works

• During Your Lifetime: Listing someone as a POD does not give them ownership rights while you are alive. They cannot access the account, and they cannot withdraw money. You (the owner) must actually give them the money for them to have it.

• After Death: The money in the account goes directly to the POD recipient.

• The Key Benefit: This is a way to avoid probate if you do not have a Trust set up.

POD vs. Joint Account Owner

It is important not to confuse a POD with a Joint Account Owner.

• Joint Owner: Has present ownership rights and access to the money while you are alive.

• POD: Only gets access to the funds after you pass away.

The Verdict for the Girlfriend: Unless the brother explicitly listed his girlfriend as a Joint Owner or a POD/Beneficiary, she has no rights to the money. She cannot access it while he is alive, and she will not inherit it when he dies.

What is Probate? (And Why You Want to Avoid It)

If a person dies without a POD, a beneficiary, or a Trust that owns their assets, their estate generally must go through Probate.

Probate is the legal process required to pass assets to heirs when there is no specific direction left behind (like a beneficiary designation).

The "Cost vs. Value" Problem

One of the biggest risks of ignoring Probate is when the amount of money in the bank account is relatively small (e.g., a few thousand dollars or the $13,000 mentioned in the scenario).

The Warning: Attorneys often see bank accounts that contain roughly the same amount of money that it costs to hire a lawyer to do the probate. If the probate fees cost as much—or more—than what is in the bank account, the money often just sits there. It becomes "not worth it" for the family to pursue legal action to retrieve it. Eventually, after many years, that money may go back to the bank.

The Solution: Adding a POD is a simple step that ensures the money goes to a loved one rather than being eaten up by legal fees or sitting frozen in the bank.

What Happens If There Is No Will? (Intestate Succession)

If a person passes away in Florida without a Will, a Trust, or a designated beneficiary (POD), their property passes "Intestate."

Intestate means the state statutes decide who gets your money. Based on Florida's intestacy statute mentioned in the transcript, the hierarchy for an unmarried person is strictly defined:

1. Children: If the deceased has children, everything goes to them.

2. Parents: If there are no children, assets go up to the parents (if alive).

3. Siblings: If there are no children and no parents, assets go to the siblings.

Where does the girlfriend fit in? She doesn't. Even after 12 years, if she is not married to the deceased and is not listed as a beneficiary, she receives nothing under these statutes.

Summary: Protecting Your Assets

To ensure your funds go where you want them to go—and to avoid the costs of probate—you must take action.

• If you want a partner to have access NOW: They must be a Joint Account Owner.

• If you want a partner to inherit AUTOMATICALLY: They must be listed as a Payable on Death (POD) recipient.

• If you do nothing: The state decides who gets the money (usually blood relatives), and the funds may be consumed by probate fees.

Do you have questions about inheritance, estate planning, or asset protection in Florida?

Contact atCause Law Office — "The non-stuffy attorneys."