Losing a loved one is already one of the hardest experiences a family can face. When you also find yourself suddenly responsible for handling their finances, the questions can feel overwhelming — especially when it comes to something as fundamental as their bank accounts.
What happens to those accounts? Who can access them? Do they have to go through probate? Can the bank just freeze everything?
These are questions Houston families ask us all the time at Strickland Law Firm. The answers depend on a few key factors — and understanding them can save your family significant time, money, and stress.
The First Question: Is There a Beneficiary Designation?
The single most important factor in determining what happens to a Texas bank account after death is whether the account has a designated beneficiary — specifically, a Payable on Death (POD) or Transfer on Death (TOD) designation.
If the account has a POD or TOD beneficiary named:
- The account passes directly to that person upon the owner’s death
- It does not go through probate
- The beneficiary typically just needs to present a death certificate and their ID at the bank
- The process can often be completed in days rather than months
This is one of the most effective tools available for keeping bank assets out of the probate process entirely. If your loved one had the foresight to set up POD designations, that account may be simpler to handle than you expect.
However, if no beneficiary was named — or if the named beneficiary predeceased the account owner — things become more complicated.
When There Is No Beneficiary: What Happens Next
If a Texas bank account has no POD or TOD beneficiary, the funds become part of the deceased person’s estate. That means they’ll likely need to pass through the probate process before anyone can legally access them.
How complicated that process is depends on whether the person died with a valid will or without one.
If There Was a Will
When someone dies with a valid will in Texas, the executor named in that document has the legal authority to gather estate assets — including bank accounts — pay any outstanding debts, and distribute what remains to the beneficiaries. To do this, the executor must first have the will admitted to probate through the appropriate county court.
In Harris County, this is handled through the Harris County Probate Courts. Once the court formally appoints the executor and issues Letters Testamentary, the bank will recognize their authority to access and manage the account.
Texas law generally allows a four-year window from the date of death to probate a will in Houston. Waiting too long can create serious complications, including losing the right to use the most streamlined probate procedures.
If There Was No Will
When someone dies without a will in Texas — a situation called dying “intestate” — the estate is distributed according to Texas intestate succession laws. The state essentially writes a default will for you, which may or may not reflect what the deceased person actually wanted.
To access the bank account, a family member will typically need to go through one of several legal processes, such as a Determination of Heirship or probate without a will. These proceedings establish who the legal heirs are and give them the authority to act on behalf of the estate.
What About Joint Bank Accounts?
Joint bank accounts — accounts with two or more owners — typically have a right of survivorship built in. This means that when one owner dies, the surviving owner automatically becomes the sole owner of the account without going through probate.
This is a common setup for married couples or aging parents who add an adult child to their account for convenience. In most cases, the surviving joint owner just needs to notify the bank and present a death certificate.
Important caveat: Not all joint accounts in Texas work this way. The specific language in the account agreement matters. If you’re unsure how a particular account is structured, it’s worth reviewing the paperwork or speaking with the bank directly — and potentially consulting an attorney.
Small Estates: Is There a Simpler Option?
If the total value of all assets subject to probate is $75,000 or less, Texas law may allow a simplified process called a Small Estate Affidavit.
This is a sworn document signed by the heirs that can sometimes be used to claim bank account funds without opening a full probate case. The bank must agree to accept it, and there are specific legal requirements that must be met.
A small estate affidavit isn’t appropriate in every situation, but when it qualifies, it can be a much faster and less expensive option for Houston families dealing with modest estates.
Can the Bank Freeze the Account?
This is one of the most common fears families have — and it’s understandable. The short answer is: it depends.
Banks are not automatically notified when a customer dies. If the account has a surviving joint owner or a POD beneficiary who acts quickly, there may be little disruption. However, once a bank is notified of an account holder’s death, they will typically restrict access to the account until proper legal authority is established.
This is why it’s important not to delay. Attempting to access an account without proper legal authority — even with good intentions — can create legal problems for family members. The right process protects everyone.
What If the Account Is Part of a Trust?
If your loved one had a Revocable Living Trust and the bank account was properly titled in the name of the trust, the account generally does not go through probate at all. The successor trustee named in the trust document has authority to manage and distribute trust assets according to the trust’s terms.
This is one of the key advantages of trust-based estate planning — accounts and other assets can transfer quickly and privately without court involvement.
Houston Families: Here’s What We Recommend
Whether you’re dealing with a bank account right now after a loved one’s death, or you’re trying to plan ahead to make things easier for your family, a few things are clear:
- POD/TOD designations on bank accounts are one of the simplest tools available to avoid probate
- Acting promptly after a death helps avoid complications with bank access and probate deadlines
- The right legal process depends on your specific situation — there is no one-size-fits-all answer
At Strickland Law Firm, we work with families throughout Houston and Harris County to navigate exactly these situations. Whether that means probating a will, handling a determination of heirship, or simply answering your questions during a free consultation, we’re here to help. We offer flat-fee probate services because we believe cost transparency matters — especially when families are already under stress.
Ready to get clarity on your situation? Contact Strickland Law Firm today or call (832) 583-6551 to schedule a free consultation. We serve families throughout Houston, Harris County, Fort Bend County, Montgomery County, Brazoria County, Galveston County, and surrounding areas.
This blog post is for informational purposes only and does not constitute legal advice. Every estate situation is unique. Consult with a qualified Texas probate attorney to understand your specific rights and options.
