How To Make Sure Your Bank Accounts Don’t Get Frozen After You Die
Written by
Chris Adam
Edited by
Zuri Anderson
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As you plan for the future, there are many considerations for what happens after you die. After all, you’ve likely worked hard to accumulate some money and valuables, so you want to make sure there’s a plan in place for what happens to them after you leave this world.
One thing to consider is your bank accounts. You may have heard about such accounts being frozen upon the holder’s death. In general, as reported by U.S. News & World Report, “A deceased person’s bank account is inaccessible unless you’re a joint owner, a beneficiary of the account or the estate executor.”
To make sure you’re prepared for what happens to your bank accounts after you die, GOBankingRates talked to some personal finance experts for their advice. Also find out what happens to your bills when you pass away.
Add Payable-on-Death (POD) Beneficiaries
According to Marguerita Cheng, a certified financial planner (CFP) and CEO of Blue Ocean Global Wealth, one key step to take to make sure your bank accounts don’t get frozen after you die is to designate payable-on-death beneficiaries for the accounts.
You can complete a simple form with your bank, without the need for a lawyer. By taking this action, the funds will transfer directly without going through probate. Your loved ones can then access the cash quickly.
Create a Revocable Living Trust
If you hold significant assets or multiple accounts, placing them in a revocable living trust ensures seamless access for your trustee upon your death, per Christopher Stroup, founder and president of Silicon Beach Financial.
Unlike wills, trusts avoid probate and minimize disruptions, especially important for entrepreneurs whose families rely on uninterrupted access to business capital or household cash flow.
Keep Your Estate Plan and Account Titles Synced
Even with a will or trust, if your account titles or beneficiary designations aren’t updated, your wishes might not hold.
“Coordinate your financial plan across accounts, legal documents and your tax strategy to make sure nothing gets frozen or contested after you’re gone,” Stroup said. “Consistency is protection.”
Communicate Access Without Compromising Security
“Make sure someone you trust knows where to find key documents, such as your estate plan, account list, login instructions and your financial advisor’s contact info,” per Stroup. “Too often, families lose time and money because no one knows what accounts exist or how to access them.”
Work With a Fiduciary Who Sees the Full Picture
According to Stroup, “DIY planning can leave critical gaps. A fiduciary financial advisor who understands both the tax and estate sides of your financial life can help you proactively design a plan that ensures continuity, not chaos.”
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