How is a joint bank account inherited?

The death of a loved one always requires a succession of administrative steps, many of which are relatively straightforward. However, things get a little more complicated when the decedent shares ownership of the bank account with another individual. Whether you are the co-owner of the account or one of the decedent's heirs, there are a few steps you need to take to get everything straightened out and a civil attorney will be the best person to tell you what to do.

The most important thing to keep in mind is that being a co-owner of a bank account does not imply ownership of the funds in the account.

How will the estate be administered with the bank if one of the owners dies?

Changes in the ownership of the bank account due to death must be handled differently depending on the circumstances. In fact, to open the inheritance after death, the following procedures must be followed:

• Determine whether the deceased is a joint owner or only authorized. In the first case, the management of the account is part of his inheritance, whether or not he has a will.
• Contact the Bank: The successor or co-owner must inform the bank of the death, after which, if he/she is a co-owner, the bank will immobilize the part corresponding to the deceased person in the bank account.
• Providing documents: To accredit the death, the bank will require the following documents such as the death certificate the copy of the will or, failing that, copy of the judicial resolution declaring heir and documents identifying the heir.
• Inheritance tax: The money in the account cannot be used until the bank has verified that this tax has been paid.

After completing the above procedures, the bank will authorize the heir to use the funds in the account. It is important to note that, of course, joint owners may or may not be heirs to the account, so the above steps may also apply depending on their circumstances.

What happens to the inheritance and the bank account of the two owners?

The above instructions apply to any type of bank account, including bank accounts whose sole owner is the deceased. If an account has two owners, there are two possibilities:

• Ambiguous Account: In this type of account, all owners can manage their proportional share of funds without the authorization of the other party. Therefore, in this case, the co-owners can withdraw funds from the deceased person's bank account up to the corresponding limit (50% in the case of two persons). The rest will be managed by the succession process.
• Joint account: In the case of a joint account, the other holders will need the consent of all the heirs of the deceased to dispose of the funds.

In any case, the communication of the death to the bank is essential, and the succession process is always addressed to the party corresponding to the deceased.

What happens if one of the co-owners withdraws funds from the bank account after the deceased person dies?

Co-owners withdrawing or transferring funds from a joint account without being the owners of the funds may constitute a crime of misappropriation under Article 253 of the Penal Code.

Can a bank freeze an account?

Banks can do this until they know who is eligible to inherit. It is not a complete block, as it will allow direct debit payments and deposits so there will be no overdrafts or refunded receipts. To unblock it, you must prove that the inheritance has been accepted and assigned. In other words, it is not enough to show a will or a letter. On the other hand, the bank can claim from the heirs the cause of payment of inheritance tax (or its exemption), thus saving itself from its subsidiary liability. In this case, the bank will only be able to keep the amount necessary to meet the treasury.

What rights do the co-owners of the decedent's bank account have?

Since he is a co-owner, he can use 50% of the deposit. He also does not have to pay ISyD. The remaining 50% is distributed to the legal heirs in accordance with the provisions of the will or declaration of inheritance. It is important to distinguish between account holders and account authorizers. The difference between the two is the rights acquired by each person. In the case of authorization, the corresponding account administration license application will not apply to the death and loss of eligibility status of the account holder.

Why is it so important to leave a will?

While having one account with two owners can be useful in many situations, the procedure for disposing of funds can be complicated when there are several heirs or when the co-owner is not one of them. This is especially true in the absence of a will, since it is necessary to wait for a judicial decision on the inheritance to determine which part corresponds to the deceased. Therefore, it is always advisable to choose the bank account that best suits our needs and those of our family. For these reasons, it is advisable to put our wishes in writing in a will to prevent mishaps to our successors.