How to Avoid Probate for Your Bank Account in Michigan
What Happens to Your Bank Account When You Pass Away? Here’s How to Protect Your Family from Probate Delays
When you pass away, your bank accounts don’t automatically go to your loved ones—unless you've planned ahead.
Without proper planning, those accounts could be frozen and tied up in probate, delaying access to funds when your family may need them most. The good news? There are simple, effective ways to avoid this and make life easier for your beneficiaries.
In this post, we’ll explain how probate works for bank accounts, what happens with joint accounts, and how Pay-on-Death (POD) and Transfer-on-Death (TOD) designations can help you bypass probate entirely.
The Probate Process for Bank Accounts Without a Beneficiary
If you haven’t named a beneficiary on your bank account, here’s what could happen after your death:
🔒 Accounts Are Frozen
Banks typically freeze individual accounts until the court appoints a personal representative or executor to handle the estate.
⏳ Probate Takes Time
The probate process in Michigan can take months—or even longer, especially if the estate is complex or disputed.
💸 Legal & Court Fees
Probate can reduce the estate’s value through court costs, legal fees, and administrative expenses.
💔 Stress for Loved Ones
Without access to your funds, your family may struggle to cover immediate expenses like funeral costs, medical bills, or daily living needs.
What If You Have a Joint Bank Account?
Joint accounts are often seen as a shortcut to avoid probate, and they can help—but they come with important caveats:
✅ Surviving Owner Gets Immediate Access
In most cases, the surviving co-owner of the account gains full access without probate.
⚠️ Potential Risks
Creditors of the joint owner may claim funds.
Misuse of funds or withdrawals by the co-owner can happen.
It may unintentionally disinherit other heirs.
Joint accounts are not a substitute for a full estate plan, especially if you want more control over who inherits your assets.
How POD and TOD Designations Help You Avoid Probate
One of the simplest and most effective tools in your estate planning toolbox? Pay-on-Death (POD) and Transfer-on-Death (TOD) designations.
✅ What Are They?
These designations allow you to name one or more beneficiaries who will automatically receive the funds in your account upon your death—no probate necessary.
✅ Key Benefits:
Avoid Court Delays: Funds transfer directly to your beneficiaries.
Fast Access: Loved ones can access the funds quickly after providing a death certificate.
No Legal Fees: Probate costs are avoided, saving money and stress.
You Stay in Control: You can update or revoke the designation at any time.
Easy Steps to Set Up POD or TOD Accounts
Here’s how to make sure your accounts don’t become probate headaches:
Check with Your Bank
Most banks offer POD or TOD designations. Ask what forms or documentation are needed.Name Your Beneficiaries
Provide full legal names and, if possible, Social Security numbers to reduce confusion or delays.Keep Records Updated
Life changes—so should your estate plan. Revisit designations after marriage, divorce, births, or deaths.Include in Your Estate Plan
POD and TOD designations should work alongside your will or trust—not replace them. A well-rounded plan ensures everything works together.
Plan Now to Protect Your Family Later
Don't leave your loved ones facing frozen bank accounts and court delays. A few simple steps today can save them significant time, money, and stress down the road.
At our offices in Detroit, Dearborn, and Royal Oak, we help families across Southeast Michigan create clear, legally sound estate plans that include POD and TOD strategies to avoid probate and ensure smooth asset transfers.
📞 Ready to Secure Your Finances for the Future?
Whether you’re reviewing your existing estate plan or starting from scratch, we’ll guide you every step of the way.
Contact us today to schedule your consultation.
We Make the Process Simple and Convenient
Start by booking a free 15-minute Estate Plan Chat. We’ll discuss your general goals and see if we might be a good fit to work together.
Not ready for a chat but still want to learn more? Click here to download our free Estate Planning Checklist.