Estate Planning in Florida: Best Practices for Managing Bank Accounts

Estate planning is more complicated than a lot of people realize. It is easy for seemingly small details to get overlooked. As part of your estate plan, you should develop a strategy for managing all of your bank accounts. At Fisher & Wilsey, P.A., we are focused on helping people and families achieve their goals. Within this article, our St. Petersburg estate planning attorneys discuss the best practices for managing your bank accounts.

You Should Start By Confirming How Each Bank Account is Titled

In Florida, how a bank account is titled controls what happens to it at death. An individual account, a joint account, and a payable-on-death account follow different legal paths. Notably, Florida Statutes section 655.79 governs ownership and survivorship rights in multiple-party accounts. If an account is jointly titled with rights of survivorship, it passes outside probate to the surviving owner. That result may conflict with the terms of a will or trust. Understanding how a bank account is titled is a must for proper estate planning in Florida.

You Should Coordinate Payable-on-Death Designations With Your Estate Plan 

Florida allows bank accounts to name a payable-on-death beneficiary. This can be a useful probate-avoidance tool, but it carries risk if used without coordination. A payable-on-death designation overrides a will. If beneficiaries change, relationships shift, or a minor is named, the designation can create unintended consequences. Best practice requires reviewing each payable-on-death designation in light of the broader plan. An experienced St. Petersburg estate planning attorney can help you put the right coordination strategy in place.

Estate Planning Includes Incapacity, Not Just Death

A common misconception is that the only bank account-related thing to worry about as part of your estate plan is death. That is false. Incapacity planning is important as well. Managing bank accounts during incapacity is often more urgent than planning for death. Without proper authority, even a spouse may be blocked from accessing funds. Florida banks require strict compliance with power of attorney statutes and internal policies. An outdated or poorly drafted power of attorney may be rejected. Best practice includes executing a Florida-compliant durable power of attorney and confirming that financial institutions will honor it. It prevents frozen accounts, missed bills, and the need for going to court. A proactive approach is the best approach.

Tip: Many people, especially couples, use joint accounts. There is certainly nothing wrong with joint bank accounts. With that being said, they should not be thought of as a full replacement for estate planning. 

We are Leaders in Estate Planning in Pinellas County, Florida

At Fisher & Wilsey, P.A., our St. Petersburg estate planning lawyer is committed to helping clients find solutions. Proactive estate planning should provide peace and security. If you have any questions about how to handle bank accounts, please do not hesitate to contact us today for a fully confidential consultation. We provide estate planning representation to people and families in St. Petersburg, Pinellas County, and throughout the broader region.