One of the most common questions Brooklyn families ask after losing a loved one is surprisingly simple on the surface: does the bank account have to go through probate? The answer depends on a few specific factors — and understanding them can save your family months of court delays and thousands of dollars in fees.
Here's what New York law actually says.
When a bank account does go through probate
If a person dies with a bank account held solely in their name — no joint owner, no named beneficiary — that account becomes part of their probate estate. Before anyone can access or withdraw those funds, the family must open either a probate proceeding (if there's a will) or an administration proceeding (if there isn't one) in Surrogate's Court. The court then issues Letters Testamentary or Letters of Administration, which authorize someone to act on behalf of the estate.
This process can take anywhere from several months to over a year, and according to AARP, probate costs can run between 3% and 20% of the estate's total value. On an estate worth $500,000, that's potentially $15,000 to $100,000 gone before your family sees a cent.
Three ways a bank account avoids probate in NY
1. Payable-on-death (POD) designation
A payable-on-death designation is the simplest tool available. You fill out a short form at your bank, name a beneficiary, and that's it — when you die, your beneficiary presents a certified death certificate and their ID, and the bank releases the funds directly to them. No court. No waiting. No attorney required just to access the money.
POD accounts are sometimes called "Totten Trusts" in New York, a term that dates back to a 1904 New York Court of Appeals case. The account holder retains complete control over the money during their lifetime — you can change the beneficiary, spend the money, or close the account entirely. The beneficiary has no rights whatsoever until death occurs.
One thing worth knowing: if you name a minor as your POD beneficiary in New York, a custodian will typically need to be appointed to manage those funds until the child reaches age 21.
2. Joint ownership with right of survivorship
Accounts held jointly automatically pass to the surviving owner when one account holder dies. This is true for checking accounts, savings accounts, and money market accounts with joint ownership. The surviving owner simply provides the bank with a death certificate, and the account is theirs.
Joint ownership does have trade-offs, though. When you add someone as a joint owner, they have equal access to those funds right now — not just after you're gone. That can create complications if the relationship changes or if the joint owner has creditor problems.
3. Revocable living trust
If you transfer your bank accounts into a revocable living trust, those accounts bypass probate entirely. The trustee you name (often yourself during your lifetime, then a successor trustee after death) distributes the funds according to the trust terms — no Surrogate's Court involved. This approach offers more control and privacy than a POD designation, especially when you have multiple beneficiaries or specific wishes about how and when assets should be distributed.
At Alatsas Law Firm, we often recommend combining a revocable trust with updated beneficiary designations as part of a broader estate plan for Brooklyn families — because no single tool covers every asset the same way.
The small estate exception
New York offers one more path worth knowing. If the total personal property left by the deceased (not counting real estate) is $50,000 or less, the estate may qualify for Voluntary Administration — a simplified process through Surrogate's Court that costs just $1 to file. This doesn't eliminate court involvement, but it's far faster and cheaper than full probate.
This threshold has been in place since November 2019, when New York raised it from $30,000 to $50,000 under Section 1301 of the Surrogate's Court Procedure Act.
What about creditors?
POD accounts and joint accounts avoid probate, but they don't automatically shield funds from your estate's debts. Under New York law, if your estate lacks enough assets to cover outstanding debts and expenses, creditors may be able to reach funds that passed outside of probate — including POD accounts. This is an area where getting actual legal advice matters, since the rules depend on the specifics of the estate.
Why a will alone isn't enough
Many people assume that having a will automatically protects their bank accounts. A will only controls assets that go through probate — it has no effect on POD accounts, joint accounts, or trust-held accounts. If your will says "I leave everything to my daughter," but your checking account has no beneficiary and is in your name alone, that account will go through probate regardless. Conversely, if you named someone else as the POD beneficiary years ago and never updated it, that person gets the money — even if your will says otherwise.
This mismatch is one of the most common estate planning mistakes families in Brooklyn, Queens, and Staten Island encounter. As outlined in our guide on what's exempt from probate in New York, keeping beneficiary designations current is just as important as having a valid will.
Getting your accounts in order
The good news is that most of this is fixable with straightforward planning steps:
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Call your bank and ask whether each account has a POD designation on file
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Review joint ownership on all accounts and confirm it still reflects your wishes
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Check that beneficiary designations align with your current will and family situation
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Consider whether a revocable trust makes sense for accounts with larger balances
These aren't dramatic legal maneuvers — they're routine updates that take 30 minutes at a bank branch or a single conversation with an attorney. The alternative is leaving your family to navigate Surrogate's Court during an already difficult time.
If you're unsure where your accounts stand or want to build a plan that keeps as much as possible out of probate, the team at Alatsas Law Firm has been helping Brooklyn families with exactly this kind of practical estate planning for nearly 30 years. A conversation now can prevent a lot of confusion later.
