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Skip the Courtroom – How to Keep Your Bank Accounts Out of Probate

03.11.26 written by

When a loved one passes away, families are often left navigating the probate process, a time-consuming and public legal procedure used to transfer assets after death. Fortunately, in Ohio, there are simple and effective strategies to help avoid probate when it comes to bank accounts. Two of the most commonly used methods are joint accounts with rights of survivorship and payable on death (POD) designations.

  1. Why Avoid Probate?

Probate can take months to complete, involves court oversight, and becomes part of the public record. It may also involve legal fees and administrative costs that reduce the value of the estate. Avoiding probate can:

  • Provide quicker access to funds
  • Reduce legal expenses
  • Keep financial affairs private
  • Simplify estate administration
  1. Joint Accounts with Rights of Survivorship

Ohio law allows for joint bank accounts that include rights of survivorship. This means that when one account holder passes away, the remaining joint owner automatically becomes the sole owner of the account without the need for probate.

Features of Joint Accounts:

  • All joint owners have access to the account. 
  • The surviving joint owner has full access to the funds immediately upon death.
  • This method is most commonly used between spouses.
  1. Payable on Death (POD) Designations

Another effective tool for probate avoidance is the Payable on Death (POD) designation. With a POD designation, you retain full control of the account during your lifetime, and upon your death, the funds are transferred directly to your named beneficiary.

Features of POD Accounts:

  • Simple and cost-free to set up at most banks.
  • Does not give the beneficiary access to the account during your lifetime.
  • Can normally name multiple beneficiaries.

To establish a POD designation, you typically complete a form at your financial institution naming the beneficiary. Upon your death, the beneficiary simply presents a death certificate and identification to claim the funds.

  1. Choosing the Right Method

Both joint ownership and POD designations are valid tools for avoiding probate in Ohio. However, they serve different purposes and carry different advantages and risks:

  1. Common Mistakes to Avoid

While proper planning with bank accounts is a smart and simple way to help your loved ones avoid the probate process, these common mistakes should be avoided:

  • Forgetting to update beneficiaries: Review your POD designations regularly, especially after life events such as divorce, remarriage, or the birth of a child.
  • Relying solely on joint accounts: This can create confusion or conflict, especially among siblings or blended families.

This is a general summary of the law and should not be used to solve individual problems as slight changes in the fact situation may require a material variance in the applicable legal advice.

Written By:
Mark A. Wagner, Esq.
mwagner@kwgd.com
330-497-0700
Canton and New Philadelphia offices

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