How Survivorship Works on Multiple-Party Accounts
Joint bank accounts are one of the most common ways families hold money together. When one account owner dies, the law determines who receives the funds. The outcome depends on the type of account and the relationships involved.
If a surviving spouse is one of the remaining parties, the deceased person's share passes to that spouse. When a joint owner dies and no surviving spouse is on the account, the share is divided equally among the other joint account holders. Ownership of the account shifts automatically, without court involvement.
On the death of a party, sums on deposit in a multiple party account belong to the surviving party or parties. If two or more parties survive and one is the surviving spouse of the decedent, the amount to which the decedent, immediately before death, was beneficially entitled under section 14-6211 belongs to the surviving spouse.
A.R.S. § 14-6212(A)Pay-on-Death Accounts and Accounts Without Survivorship
A pay-on-death (POD) designation adds another layer. While multiple parties are alive, the survivorship rules above apply. When the last surviving party dies, the funds pass to the named POD beneficiaries in equal shares. If no beneficiary survives, the funds become part of the last party's estate.
Accounts set up without survivorship, including those titled as tenancy in common, follow a different path. The deceased person's share transfers through their estate, not to the surviving joint account holders. A POD designation on an account without survivorship has no effect.
Sums on deposit in a single party account without a pay on death designation or in a multiple party account that, by the terms of the account, is without right of survivorship, are not affected by the death of a party.
A.R.S. § 14-6212(C)Understanding how your accounts are titled matters. The account type controls where the money goes when an owner dies, not your will. A power of attorney does not change these survivorship rules either.
Families often discover the importance of account titling only after a death occurs. Presenting a death certificate to the bank is usually the first step to access accounts after the death of a joint owner. Planning ahead helps avoid confusion during an already difficult time.