What Happens to Your Bank Accounts When You Die

What happens to your bank account when you die in Maryland depends almost entirely on how the account is titled. This is one of those details that feels boring until it suddenly matters a lot.

If the account is jointly owned with rights of survivorship, the surviving owner usually becomes the sole owner right away. The bank will typically ask for a death certificate before taking the deceased owner off of the account, but the funds themselves do not go through probate. And this is true even if your will says something different. Account titling controls. That said, please be careful here. Adding someone as a joint owner just to avoid probate can create serious problems, including tax issues, creditor exposure, and unintended gifts. This is definitely an area where a quick conversation with a professional can save you from a big mess later.

If the account is in your name alone, it generally becomes a probate asset. That means a personal representative has to open an estate and receive authority from the Register of Wills before the funds can be accessed. Once access is granted, the money is used to pay valid debts and expenses first, and only then is the remaining balance distributed to beneficiaries. This process often takes longer than families expect, especially when they are counting on those funds to cover immediate expenses.

Accounts owned by a revocable living trust work differently. When the trust owns the account, the successor trustee can usually step in and access the funds without going through probate once their authority is established. This can make things smoother for the people left behind, which is one reason trusts are sometimes used. They are not the right tool for every family, but in the right situation they can provide continuity when it matters most.

The big takeaway is this: your will does not control your bank account unless the account is actually part of your probate estate. A solid estate plan is not just about the documents you sign. It is about making sure everything is properly titled and coordinated so your plan works the way you expect when it is needed.

If you are not sure how your accounts are titled, it may be worth taking a closer look. Small details can have a big impact. If you would like help making sure everything is lined up, you can schedule a quick chat here.