Do Bank Accounts With Beneficiaries Have to Go Through Probate?

When a loved one passes away, one of the first financial concerns for their family is gaining access to their bank accounts. The question many people ask is: "If the bank account has a named beneficiary, does it still have to go through probate?"

In most cases, bank accounts with named beneficiaries can avoid probate entirely—but there are important exceptions and conditions to understand.

What Is a Beneficiary Designation on a Bank Account

A beneficiary designation (also called a Payable-on-Death (POD) arrangement) allows the account holder to name a specific pecount?rson to receive the account’s funds after death. When the account holder passes away, the money goes directly to the named beneficiary without going through probate.

These designations can typically be added to:

• Checking and savings accounts

• Money market accounts

• Certificates of deposit (CDs)

• Credit union accounts

Probate Is NOT Required If…

Probate is usually not necessary if:

• The bank account has a valid POD beneficiary on file,

• The beneficiary is alive at the time of the account holder’s death,

• The bank’s records are up to date and the beneficiary claim is properly submitted.

How the Beneficiary Claims the Account:

• Submit a certified copy of the death certificate to the bank,

• Provide valid ID,

• Complete any required claim or release forms.

Once verified, the bank will typically release the funds directly to the beneficiary, bypassing the probate court.

Probate May Be Required If…

Even with a beneficiary designation, probate could still be required in these cases:

1. The beneficiary predeceased the account holderIf no alternate or contingent beneficiary is named, the account may default back to the estate.

2. No beneficiary was named or the designation is invalidIf the designation was never made or the form is outdated, the account becomes part of the probate estate.

3. There are disputes among heirs or potential fraud allegationsIf other heirs contest the POD designation or raise concerns of undue influence, the court may intervene.

4. The account holder named their “estate” as the beneficiaryThis automatically triggers probate because the funds are routed to the estate rather than an individual.

What Happens If There Is a Will?

Even if a will mentions a beneficiary for the account, the POD designation overrides the will. Bank accounts with valid PODs do not follow the will’s instructions—they pass directly to the named beneficiary.

Pro Tip: Keep Beneficiary Designations Up to Date

It’s essential for account holders to regularly review and update their POD designations, especially after major life changes like:

• Divorce

• Remarriage

• Death of a prior beneficiary

Outdated designations can lead to confusion—or even court battles.

Final Thoughts

In California and most other states, bank accounts with named beneficiaries (POD accounts) do not go through probate. This makes them a simple and efficient estate planning tool for passing on financial assets.

However, if no beneficiary is named—or if the named beneficiary is deceased—those funds may become part of the probate estate. To avoid this outcome, ensure your beneficiary designations are clear, current, and legally valid.

If you’re navigating a loved one’s estate or setting up your own, consult a California estate planning or probate attorney for guidance tailored to your situation.

Contact the top-rated California trust and probate attorneys Moravec, Varga & Mooney today to schedule a telephonic consultation. Have questions? call (626) 460-1763 or email LV@MoravecsLaw.com.

Southern California Probate Lawyer Serving all counties in California, including Los Angeles, Riverside, San Bernardino, Sacramento, Santa Cruz & Beyond.