According to Florida law, when someone dies without a will in Florida, the disposition of their bank account depends on the type of account (i.e. Joint Account, Convenience Account, POD account, or a one owner account with no named beneficiary) and the designations made by the decedent before death:
1. Joint Accounts with Right of Survivorship: If the bank account is a joint account with a right of survivorship, the funds in the account automatically pass under the terms of the agreement to the surviving account holder(s) upon the death of the decedent. Note: Deposits and accounts in two or more names are presumed to vest on death to the surviving party:
(1) Unless otherwise expressly provided in a contract, agreement, or signature card executed in connection with the opening or maintenance of an account, including a certificate of deposit, a deposit account in the names of two or more persons shall be presumed to have been intended by such persons to provide that, upon the death of any one of them, all rights, title, interest, and claim in, to, and in respect of such deposit account, less all proper setoffs and charges in favor of the institution, vest in the surviving person or persons. Any deposit or account made in the name of two persons who are husband and wife shall be considered a tenancy by the entirety unless otherwise specified in writing.
2. Convenience Accounts: If the account is determined to be a convenience account, the funds in the account become part of the decedent’s estate and are subject to probate:
(1) A convenience account is a deposit account, other than a certificate of deposit, in the name of one individual (principal), in which one or more other individuals have been designated as agents with the right to make deposits to and to withdraw funds from or draw checks on such account. The designation of agents, the substitution or removal of agents, or any other change in the contractual terms or provisions governing a convenience account may be made only by the principal. Except as otherwise provided in this section, the agency relationship created under this account is not affected by the subsequent death or incompetence of the principal.
(2) All rights, interests, and claims in, to, and in respect of, such deposits and convenience account and the additions thereto shall be those of the principal only.
(3) Any balance standing to the credit of a convenience account shall be paid to the guardian of the property of the principal, to any person designated in a court order entered pursuant to s. 735.206, to any person designated by letter or other writing as authorized by s. 735.301, or to the personal representative of the deceased principal’s estate, upon presentation of effective written notice and, if applicable, proof of judicial appointment of such guardian or personal representative by a court of competent jurisdiction.
3. Pay on Death (POD) Accounts: For POD accounts, the bank funds are payable to the named beneficiary upon the death of the account holder. According to Florida Statute 655.82, upon the death of the sole owner or the last survivor of two or more owners, the money on deposit belongs to the surviving beneficiary or beneficiaries. Note: Transfer on Death (TOD) Accounts relate to investment accounts. The distribution of assets after death in these accounts works like a POD account. However, the distribution of assets after death, including cash, are governed by Florida Statutes 711.50 – 711.512, which is known as Florida’s Uniform Transfer-On-Death Security Registration Act.
4. One Owner Accounts with No Named Beneficiary: If the account does not fall into any of the above categories and is titled solely in the name of the decedent, the funds in the account will be subject to a Florida intestate probate under the related statutory code and rules. This means the funds will be distributed according to the Florida legislature’s scheme of who inherits a person’s property based on their family situation at the time of their death, which generally prioritize the decedent’s spouse and children.
Related:
- What assets must go through probate in Florida?
- Who Has Preference as a Personal Representative in Florida
- Transfer of Florida Real Estate after Death
- What is the purpose of a petition to determine homestead?
- Formal Probate Administrations
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