My partner passed away. Can I keep our joint bank account?

Introduction:

In this article, we will discuss the topic of joint accounts after the death of a spouse. We will provide you with information about the legality of keeping the joint account as your main account and what you should consider before making your final decision.

Legal Rights of the Joint Account:

Generally speaking, if the joint account has a “right of survivorship” (which is the case in many joint accounts), all funds will transfer to you as the survivor of the other account holder, according to the Consumer Financial Protection Bureau (CFPB). In this case, the funds and the account become your property, and you can do whatever you wish with them. If you want to use this account as your primary account, there is nothing wrong with that.

Different State Laws:

However, it should be noted that it is not always that simple. There are different laws in each state. For example, in New York, joint bank accounts must designate a specific person to receive the funds before the money goes to the intended recipient. You should also consider whether your spouse had a will, or if there are children or other family members who may have inheritance rights. Additionally, you should take into account any debts that may need to be settled from your spouse’s estate. When you have a joint bank account, you share all obligations with the other account holder, which means that even if the funds in the account are yours, others (or organizations) may have claims on the funds.

Consulting an Estate Attorney:

I recommend consulting with an estate attorney before you decide to make this account your primary account, not only to protect yourself (and your money) from future claims but also to ensure that your partner’s heirs are not deprived of the money left to them. You asked if it would be “wrong” to make this account your primary account, which makes me wonder if you are facing an ethical dilemma about keeping the money from people whom your late partner might have wanted to give it to. Assuming you receive approval from an estate attorney and that no one else claims the money in the account, I see no reason to prevent you from using this account as your primary account.

Good luck and our condolences.

– Kristen

If you have questions about money, Kristen is here to help. Submit an anonymous question, and she might answer it in a future article.

Sources:

• Consumer Financial Protection Bureau. “I have a joint account with someone who passed away. What happens now?”
• New York State Senate. “Legislation: Article 13-E Joint Deposits and Shares.”

Source: https://www.thebalancemoney.com/what-to-do-with-joint-bank-account-when-partner-dies-5215863