Does a Will Override a Joint Bank Account? A Florida Perspective

When it comes to estate planning, one of the most common questions people have is whether a will overrides a joint bank account. Understanding how joint accounts work and the impact a will has on them is essential for ensuring that your estate plan works as intended. This blog will dive deep into the topic, exploring how joint bank accounts are treated under Florida law, the role of a will, and how to structure your assets for smooth transitions after death.

Understanding Joint Bank Accounts in Florida

A joint bank account is a type of financial account owned by two or more individuals. In most cases, joint bank accounts are established with the “right of survivorship,” which means that when one account holder passes away, the surviving holder automatically becomes the sole owner of the account. This is a crucial factor when considering whether a will can override a joint bank account.

In Florida, joint accounts typically include:

• Joint Tenancy with Right of Survivorship (JTWROS): Both account holders share ownership, and the surviving owner inherits the funds in the account upon the other owner’s death.
• Tenancy by the Entirety (TBE): This form of ownership is only available to married couples and provides similar survivorship rights. Upon the death of one spouse, the surviving spouse automatically inherits the entire account.

Does a Will Override a Joint Bank Account?

The short answer is no—in most cases, a will does not override a joint bank account in Florida. When a joint account is established with the right of survivorship, the terms of the account take precedence over the terms of a will. This means that upon the death of one account holder, the funds in the joint account pass directly to the surviving account holder, bypassing probate entirely.

However, there are some exceptions and nuances to this rule, which we will explore further.

Why a Will Usually Doesn’t Control Joint Accounts

Under Florida law, the assets held in a joint bank account with right of survivorship are considered non-probate assets. This means they are not subject to the probate process and are not controlled by the deceased’s will. Florida courts generally uphold the terms of joint accounts as they are written, recognizing the surviving account holder as the new sole owner upon the death of the other holder.

Even if your will includes specific instructions regarding the division of assets, joint accounts are typically excluded from these directives. The joint account passes outside of your estate because it’s legally considered a separate arrangement with its own rules of inheritance.

For example:

• If John and Mary own a joint bank account, and John passes away, the account automatically becomes Mary’s. Even if John’s will specifies that the account should be divided among his children, that instruction is not enforceable in this case.

Exceptions to the Rule: Situations Where a Will May Affect Joint Accounts

While a will does not typically override a joint bank account, there are special circumstances where a will may come into play:

1. If the Account Was Established for Convenience: Sometimes, a person may add another individual (often a child or caregiver) to a joint bank account solely for convenience. In these cases, the surviving joint account holder might argue that the funds were never meant to be inherited but were simply held in trust for the benefit of the deceased’s estate. These situations often result in litigation, and Florida courts will examine the intent behind creating the account.
2. In Cases of Fraud or Undue Influence: If there’s evidence that the deceased was coerced or manipulated into adding someone as a joint account holder, the will may be used to challenge the legitimacy of the joint account arrangement. Florida law takes accusations of undue influence seriously, particularly in elder law and estate disputes.
3. Co-Owners Without Survivorship Rights: If a joint bank account is set up without survivorship rights—meaning both parties own a portion of the account but the assets are not intended to pass automatically to the other upon death—then the deceased’s share could be controlled by their will and subject to probate.

How to Structure Joint Accounts and Wills Properly

When setting up a joint bank account, it’s critical to ensure that the account terms match your estate planning goals. If you want the funds in a joint account to go to the surviving account holder, make sure the account is set up with the appropriate survivorship provisions. If not, consider alternative estate planning tools.

To ensure clarity between your will and joint bank accounts:

1. Explicitly Designate Beneficiaries for Non-Probate Assets: Use payable-on-death (POD) or transfer-on-death (TOD) designations for bank accounts if you want to bypass probate but don’t wish to create a joint account with survivorship rights.
2. Consider a Revocable Living Trust: Placing assets in a trust can avoid probate while allowing for more specific distribution instructions than a joint account. A trust ensures that your wishes are followed, without the limitations imposed by joint accounts or the probate process.
3. Communicate Your Intentions Clearly: Discuss your plans with your attorney, financial institutions, and loved ones to avoid confusion or conflicts after your passing. Ensuring that everyone understands your wishes regarding joint accounts can prevent disputes and reduce the likelihood of probate litigation.

Joint Accounts and Florida’s Probate Laws

Florida probate law recognizes joint accounts with right of survivorship as outside the estate, which means that probate laws don’t apply to these assets. However, understanding how probate law affects other assets is crucial for comprehensive estate planning.

If you have other assets—such as real estate, retirement accounts, or personal property—that are not held in joint ownership, these assets may be subject to probate. In such cases, a will is essential for directing how these assets will be distributed.

Benefits of Joint Bank Accounts in Estate Planning

Joint bank accounts can offer several advantages in estate planning, particularly for those seeking simplicity:

1. Avoids Probate: As noted earlier, funds in a joint account with survivorship rights pass directly to the surviving account holder, bypassing the probate process entirely.
2. Immediate Access to Funds: The surviving account holder can access the funds immediately, without waiting for court approval. This can be especially helpful in covering immediate expenses after the death of a loved one.
3. Ease of Management: Joint accounts can simplify day-to-day financial management, particularly for spouses or family members who share household expenses or need to manage finances collaboratively.

Disadvantages of Joint Bank Accounts

While joint accounts offer some benefits, there are disadvantages as well:

1. Loss of Control: Once you add someone as a joint account holder, they typically have full access to the account. This means they can withdraw funds without your permission.
2. Potential for Disputes: If the intent behind creating the joint account is unclear, it could lead to disputes among beneficiaries after death, particularly if the terms of the will conflict with the account’s ownership structure.
3. Creditor Exposure: Joint accounts can expose your funds to the other account holder’s creditors. If the surviving joint owner has debts, the funds in the account may be used to satisfy those obligations.

Conclusion: Does a Will Override a Joint Bank Account?

In most cases, a will does not override a joint bank account with right of survivorship in Florida. The joint account passes directly to the surviving account holder, bypassing probate and overriding any instructions in a will. However, exceptions exist, especially if there’s evidence of undue influence or if the account was created for convenience only.

For Floridians, understanding the relationship between joint accounts and estate planning tools like wills is essential for creating a comprehensive plan that aligns with your wishes. Whether you are drafting a will, setting up joint accounts, or considering alternatives like trusts, it’s crucial to work with an experienced estate planning attorney to ensure that your plan is legally sound and effectively manages your assets after death.

If you need help navigating these complex issues, contact Eannarino Law today to discuss your estate planning needs and ensure your assets are protected.