Can a Joint Bank Account Holder Include Their Share in a Will for a Third Party?

Introduction to Will and Joint Accounts

will and testament, or simply a will, is a legal document through which a person can express their wishes regarding the distribution of their assets following their death. Joint bank accounts are widely used for convenience, allowing two or more people to manage finances together. The relevance of understanding how a will interacts with joint bank accounts is crucial for effective estate planning, especially when a joint account holder wants to leave their share of the assets to a third party.

The Legal Perspective on Wills and Joint Accounts

Under most legal systems, a person has the freedom to specify in their will how their assets are to be distributed upon their death. This includes the assets held in joint bank accounts. The key point to understand is that a will only controls the distribution of an individual's intestate estate, which does not include co-owned or jointly held property.

Bequeathing a Share of a Joint Bank Account

When an individual specifies their share of a joint bank account in their will, they can decide whether to leave it to a joint account holder or a third party. Importantly, the will can specify the distribution of individual shares, and a joint holder’s share would be included in their probate estate. Thus, individuals can still use their will to include their share of joint bank accounts in the distribution to a third party, even if the individual who is distributing the funds is a joint account holder.

Examples and Scenarios

Let's consider some scenarios where a joint account holder's will might be relevant:

Scenario 1: Left to a Non-Joint Holder
Suppose two siblings are joint account holders. If one sibling executes a will deciding to bequeath their share in the shared account to their parents, the parents would receive the deceased sibling's share of the joint account after the account holder's death. Scenario 2: Left to a Partner or Spouse
Consider another scenario where one partner in a joint account also wants to leave their share of the shared account to their spouse. This can be specified in the will, even though the spouse is a joint account holder.

Key Considerations and Legal Framework

Legal Framework: In legal terms, when a joint account holder dies, the deceased's interest in the joint account is part of their estate. This interest is typically probated and distributed according to the terms of the deceased's will, if named in the will.

Revocable vs. Irrevocable Joint Accounts: In some joint accounts, particularly those that are revocable, the account remains under the control of the surviving joint account holder even after the death of one holder. However, in an irrevocable joint account, the account is subject to probate and can be distributed according to the deceased's will.

Essential Steps inestate planning

Including a share of a joint bank account in a will involves several steps:

Review the Terms of the Joint Account: Before making any legal arrangements, it is crucial to understand the terms of the joint account. Check whether the account is revocable or irrevocable. Consult a Legal Professional: It’s advisable to consult with an estate planning attorney to ensure that the will complies with local laws and to make necessary adjustments. Execute the Will: A will must be properly executed in accordance with the relevant legal formalities to be valid. This may include having it witnessed, depending on the jurisdiction. Understand the Probate Process: Probating the will may be required to transfer the assets, which can vary from a simple process to a more complex one, depending on the complexity of the estate.

Conclusion

In summary, a joint bank account holder can indeed include their share in a will and direct it to a third party if they choose. This flexibility underscores the importance of clear and comprehensive estate planning. Understanding the legal implications and consulting experts can help individuals achieve their wishes and ensure the smooth distribution of their assets posthumously.