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. The law permits any party to alter the account terms. You do this 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 tenancy with right of survivorship to a single-party account. You can add or remove a pay-on-death beneficiary. You can also 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 surviving spouse listed as a joint owner will automatically inherit the account regardless of what the will says.
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 applies equally to real property and personal property held in certain account forms.
For families with community property with right of survivorship arrangements, these rules carry extra weight. If a surviving spouse is listed on the account, they inherit the property automatically. Reviewing account titles and beneficiary designations is just as important as updating your will or trust.
Many people assume their estate plan covers all their assets. In reality, the way each account is titled can override their wishes. Taking time to review every account with your financial institution helps make sure your real estate, personal property, and financial accounts all pass the way you intend.