How to Change Account Rights During Your Lifetime
If you want to change how a bank account transfers at death, you need to act while you are alive. Arizona law permits any party to an account to alter its terms by delivering written notice to the financial institution. That notice must be signed and received by the institution during the party's lifetime.
The type of account may be altered by written notice given by a party to the financial institution to change the type of account or to stop or vary payment under the terms of the account. The notice shall be signed by a party and received by the financial institution during the party's lifetime.
A.R.S. § 14-6213(A)This means you can convert a joint account to a single-party account, add or remove a pay-on-death beneficiary, or change the survivorship terms. The key is doing it through the financial institution directly, not through a separate legal document.
Why a Will Cannot Override Account Survivorship
One of the most common misunderstandings in estate planning is the belief that a will controls everything. It does not. Account survivorship rights and pay-on-death designations operate outside the will entirely.
A right of survivorship arising from the express terms of the account, section 14-6212 or a pay on death designation may not be altered by will.
A.R.S. § 14-6213(B)If your will says your savings account goes to your daughter, but the account lists your son as a joint owner with survivorship, your son receives the money. The will has no authority over that transfer. This is why reviewing account titles and beneficiary designations is just as important as updating your will or trust.
