Nontestamentary Bank Transfers at Death

Account Terms Control, Not the Probate Code

The law draws a clear line between assets that pass through a will and assets that pass by the account agreement. When funds in a joint or payable on death (POD) account transfer to a surviving party under A.R.S. 14-6212, that transfer stands on its own. Both account holders and their families benefit from this distinction.

This single sentence carries real weight. The transfer does not go through probate. It cannot be challenged on the grounds that it should have been executed as a will. It is not governed by the rules that apply to testamentary documents.

What This Means for Your Estate Plan

These transfers happen outside the probate process. They are often faster and simpler for surviving family members. No court involvement is needed. The surviving party typically needs only a death certificate and identification to access the funds.

But this simplicity cuts both ways. If an account is titled incorrectly or a beneficiary designation is outdated, the transfer still happens. It just may not go the way you intended. A properly coordinated estate plan reviews every account title and every beneficiary designation.

For families using a living trust, the question becomes whether each account should be held in the trust or rely on these nontestamentary transfer rules instead. Both approaches avoid probate. A trust provides more control over timing, conditions, and distributions.

This rule also applies to personal property held in joint ownership and payable on death accounts at banks and credit unions. Unlike a beneficiary deed used for real estate, these account transfers require no recording. They happen automatically when the last account holder passes away. Families with a small estate may find these transfers cover most of their assets without any court filing at all.