What Happens To Your Bank Account After You Pass Away?

Right after you pass away, a number of things can, and likely will, happen to your bank account. By going over these things, and speaking with a lawyer, you can ensure that your estate planning wishes are granted. 

What Happens To Your Bank Account After You Pass Away? 

A variety of different things can happen to your bank account after you pass away. And, with this fact in mind, some of the most notable things that can, and may, occur to your bank account are as follows:

• Your bank account will go to the beneficiary you have named in your will, trust, or any other, related, estate planning arrangement.
• Your bank account will be distributed, as per the laws, and regulations, that govern estates and asset transfers, in the state of Florida.
• Your bank account will sit there, untouched, unless, or until, someone informs the bank of your passing and works to obtain/distribute the assets within the account.

Many other things can occur to your bank account, in the event of your passing. But, the above are some of the most likely and the first, in particular, is the most desirable.

How Can You Give Your Bank Account To Your Chosen Beneficiary? 

The best way to give your bank account to your chosen beneficiary is to develop an estate plan that includes it.

Just as an example, you can develop a living trust. Right within your living trust, you can clarify that you would like your bank account to go to your daughter.

If you do the above, and you do so in the proper manner, then your bank account will go to your daughter.

But, if the above is done improperly, then it is likely that your estate will be considered invalid. This can, and will, make it a lot more difficult for your daughter to get the bank account you wish to give her in a timely manner.

Will Your Beneficiaries Have To Pay Taxes On Your Bank Account? 

The answer to this question is “Maybe.” But, in the end, it is unlikely that your beneficiaries will need to pay taxes on your bank account, for one simple reason: Florida does not have an inheritance tax.

If your beneficiaries receive anything from you, then they will not need to pay any taxes on the assets that you receive from them.

On the other hand, though, if your bank account is worth more than $13.61 million then, as per Federal law, some of that money will need to go into paying taxes.

None of the taxes that your beneficiaries will need to pay will go to the state of Florida; they will only go to the Federal government and, even then, this will only occur if your bank account is worth more than $13.61 million.

Speak With A Florida Estate Planning Lawyer Today 

If you would like to give your bank account to a specific person, then you can, and should, obtain the legal assistance that will allow you to do so.

Speak with a Florida estate planning lawyer at Millhorn Elder Law Planning Group today and we will help you create an estate plan that includes your bank account, as well as anything else you wish to give.

Sources: 

law.cornell.edu/wex/estate_planning

irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2024