What Happens to Joint Accounts When a Spouse Passes Away? 

Most married couples share at least one financial or investment account. You may be wondering: What happens to shared accounts when one spouse passes away? Is there anything we can do legally so we know what will happen to one spouse’s interest in those accounts when the other passes away? An estate planning attorney will be able to help. Making arrangements regarding joint accounts is a part of the estate planning process, and it is something every married couple should plan for. 

What Happens to Jointly Owned Finances When One Spouse Passes Away?

Usually, joint bank accounts and investment accounts pass automatically to the surviving spouse. Jointly held financial accounts often come with what is called the “right of survivorship.” This means that when one of the account holders passes away, the survivor is presumed to own the entire account. This is true for most financial accounts, such as bank accounts, mortgages, and credit accounts. In most cases, all you will need to do is go to the bank or other financial institution with a copy of your spouse’s death certificate and fill out some paperwork. However, this process still has the potential to become complicated or difficult, and you may still want a lawyer to guide you. 

Even if one spouse makes a will that says someone other than their spouse should receive money or investment interests out of a jointly held account, the surviving spouse is still entitled to the entire account. If you would like to leave any money that is in a joint account to someone other than your spouse, your estate planning attorney will advise you to open a separate account, possibly one that is jointly owned with the intended recipient. 

What Happens to Other Jointly Owned Property When One Spouse Passes Away?

This can be a little more complicated. Most of the time, jointly owned personal property, such as cars, and jointly owned real property, like houses, also automatically becomes the sole property of the surviving spouse. It is strongly advisable to let a qualified estate planning attorney examine the deed to any real estate you and your spouse own together while both of you are still alive to be sure.

What if an Account or Property is Only in My Spouse’s Name? 

If the account is only in your spouse’s name, their estate planning documents or intestacy laws will govern what happens to that account. In Illinois, an account owner has the option of putting a “payable on death” note on a bank account, or a “transfer on death” note on some types of personal property. Doing so allows some property to pass without going through probate, but always consult an attorney. 

As far as credit card debt goes, only the person whose name is on the credit account is liable for it, so you will not “inherit” your spouse’s debt. Many creditors will still try to recover the debt, so it is a good idea to involve an attorney if you have any concerns. 

Call a Chicago Area Estate Planning Attorney Today

If you and your spouse are concerned about what will happen to your joint or separate financial accounts or property, the Gierach Law Firm is here to help. The best time to start the estate planning process is now. Contact a Naperville estate planning attorney to learn more. Call 630-228-9413 to schedule a confidential consultation today. 

Source: 

Illinois Joint Tenancy Act