Remarriage means that one of the spouses has to make various decisions including those concerning joint banking accounts and other assets after the death of the spouse. This can involve bank accounts where both partners contributed but which were opened under a joint marriage license. The surviving spouse may ask himself/herself whether he/she should do something to request the removal of the deceased spouse from that list. The following are some essential aspects that one has to consider when coming up with this decision.
It also means that joint accounts become sole accounts where the beneficiary has an exclusive right to receive and dispose of the money.
It is common to find that the majority of married couples have what can be referred to as a ‘joint’ account, where both partners have equal rights to the account. This means they are both able to withdraw the money or deposit it into the account whichever is the case. However, when one of the account holders in a joint account passes on, the account becomes an individual account held in the name of the surviving spouse.
Banks often describe it as a right of survivorship. As soon as they obtain a copy of the death certificate, they grant full control and possession of the account to the remaining account holder. This transfers the ownership of the account automatically to the surviving spouse without the latter having to go through the normal processes of acquiring ownership through the agreement that was made initially.
While you might continue to receive statements, checks, or any other paperwork with your deceased spouse’s name on it for some time, please remember that the account as well as all the monies contained within it are entirely under your purview. In terms of legal representation, it is like the account was just yours from the very beginning.
Figure: Account Access and Transition Period
As mentioned above, you may still find letters addressed to you and your spouse, as well as your spouse’s name on any account-related documents for a certain period before records are changed. This can take a few weeks or even a couple of months depending on the bank in question.
It is important to note that during this time you retain full control of it and can utilize checks or debit cards linked to the account. Nevertheless, if there are complications such as frozen accounts or declined transactions, one should contact the bank to notify them of the situation and check the possibility of accessing the account.
Banks that have been mentioned earlier pointed out that they will process any changes once the bank has a copy of the death certificate. Thus, it can be helpful to make documents available to the employees in advance, which will facilitate the change.
To accomplish the task of removing the name from the account, the following steps need to be followed:
In the case of joint accounts, the account reverts to a tenancy in common where one of the account holders dies and this can be requested by the surviving spouse where they want the account holder’s name to be completely removed from the account. This may help to prevent ambiguity because it confirms that only one individual owns and is solely in control of the account.
It can be relatively easy to remove a name from a bank’s card database, in some cases, one only needs to complete the change of ownership form. On some banks, you can do this through online banking investment, or else you have to go to the branch. Besides the form, they are likely to be asked for a certified copy of the death certificate as proof before they can have the name removed.
This is to mean that any checkbooks, cards, or account statements that may have both individuals as account holders will be replaced with the name of the survivor only. They also work towards achieving the same goal as the one above through the process of withdrawing and getting a new individual account.
What are the Benefits and Risks
While spouses often share bank accounts, there are times when removing the deceased’s name makes practical sense: While spouses often share bank accounts, there are times when removing the deceased’s name makes practical sense:
Pros:
- Helps to prevent confusion where, for example, the checks or statements continue to display both names
- Proclaims that there is only one remaining owner
- Can be useful in avoiding problems in getting funds
- Cons:
- If you have a joint account that has been active in the past years, closing it also affects your credit files.
- Unfortunately, obtaining a new individual account means documenting oneself.
- On the other hand, reasons you may choose to leave the account as-is: On the other hand, reasons you may choose to leave the account as-is:
- Pros:
- Enables the user to maintain a record of the existing age/history of that particular account.
- Allows you to endorse the current check along with both names for a limited amount of time.
- What the user can avoid is the need to produce application forms to open an account.
- Cons:
- While dealing with constant paperwork, it may be discomforting if the name of the deceased is still present.
- Possible legal conflicts that might arise from the accounts by the heirs of the deceased (especially not so common for spousal accounts).
Therefore, whether the deceased’s name remains on a joint account or not is of no great importance in practical life. It is now exclusively owned by and accessible to the living spouse as the other spouse cannot be alive for an indefinite period. However, as to the point of changing the account names, it comes down to personal preference as to whether or not it gives them comfort or is simply a nuisance.
Consult Professionals as Needed
The task of maintaining different financial accounts and paying for various liabilities after the death of a partner can be challenging indeed. It is always advisable to seek the services of individuals such as a banker, a certified financial planner, an accountant, or a lawyer if there is a need to deal with assets, debts, taxes, estates, and many other related matters upon the death of an individual. They can assist in making sure that something is done right and in its proper place when things are already stressful enough.
Although paying with your deceased spouse’s credit card or taking their name off of such an account does not usually affect legal ownership, it is still a good idea to know all your choices. Ensure that you make the right decisions that will help you in choosing the shared accounts that are closer to your heart as well as those that will guarantee your safety.
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