What Happens to Joint Bank Accounts and Joint Property When Someone Dies Without a Will (Intestate) under New Jersey Law

Short answer: In New Jersey, how assets pass after someone dies without a will depends on how each asset is titled. Assets titled as joint tenants with right of survivorship or tenants by the entirety usually pass automatically to the surviving co-owner. Assets without a survivorship title go through intestate succession under state law and may require probate. Banks and other institutions often pay surviving co-owners, but creditors and disputes can complicate matters. This is general information, not legal advice.

Detailed Answer

1. Ownership and titles matter more than a will

When someone dies intestate (without a will) in New Jersey, the ownership form controls what happens to each asset:

• Joint tenancy with right of survivorship (JTWROS): If real or personal property (including bank accounts) is held as joint tenants with right of survivorship, the surviving joint owner typically takes the decedent’s share automatically. The asset usually bypasses probate.
• Tenancy by the entirety: For married couples, many states — including New Jersey — recognize tenancy by the entirety for ownership of real property and sometimes for bank accounts. That ownership includes survivorship and often shields the property from the decedent-spouse’s individual creditors. On death, the surviving spouse becomes sole owner automatically.
• Tenants in common: If co-owners hold property as tenants in common, each owns a divisible share. The decedent’s share does not pass automatically to the co-owner(s); it becomes part of the decedent’s estate and passes under intestacy rules or by will.
• Payable-on-death (POD) or Transfer-on-death (TOD) designations: Accounts or securities with a valid POD/TOD beneficiary generally pass directly to the named beneficiary and avoid probate (subject to challenges by creditors).
• Assets titled only in the decedent’s name: These assets are part of the probate estate and will pass according to New Jersey’s intestacy statutes if there is no valid will.

2. What banks typically do

When presented with a death certificate, banks generally follow the account title:

• If an account is titled jointly with rights of survivorship, banks usually transfer or pay the surviving owner(s) on proof of death.
• If the account is single-name and there is no beneficiary designation, the bank will freeze the account and require probate or a small-estate process to release funds.
• If the bank suspects the joint account was created solely to defeat creditors or avoid estate claims, it may refuse immediate payment and require a court determination.

3. Intestate succession in New Jersey

When assets are part of the probate estate (not owned jointly with survivorship and without beneficiary designations), New Jersey’s intestacy laws determine who inherits. The rules depend on surviving relatives (spouse, children, parents, siblings, etc.). For an overview of New Jersey probate and intestacy, see the New Jersey Courts resource on wills and probate: https://www.njcourts.gov/selfhelp/willsandprobate.html. For statutory text and to research the exact statutory sections, visit the New Jersey Legislature: https://www.njleg.state.nj.us/.

4. Creditors, liens, and dispute risks

Even when property passes automatically to a surviving joint owner, creditors of the deceased person may still have claims against the decedent’s estate. Whether creditors can reach jointly-held assets depends on how the asset was titled, whether the funds were solely the decedent’s, and applicable law. Tenancy by the entirety often protects the property from creditors of only one spouse. If a joint account was funded mostly by the decedent, other heirs or creditors may contest transfers.

5. Real property specifics

Real property ownership varies by the deed language. A deed that creates a right of survivorship (joint tenancy or tenancy by the entirety for spouses) typically passes outside probate to the survivor. If the deed creates tenants in common, the deceased owner’s share becomes part of the probate estate and passes according to intestacy rules unless there is a valid will.

6. Small estate procedures and probate

New Jersey has procedures to simplify collection and distribution of small estates or personal property. These procedures can allow relatives or beneficiaries to collect funds or personal property without formal probate, but eligibility rules and dollar limits apply. The New Jersey Courts self-help pages describe summary procedures and required forms: https://www.njcourts.gov/selfhelp/willsandprobate.html.

7. Practical immediate steps after a death

1. Get several certified copies of the death certificate from the funeral home or the vital records office.
2. Locate bank statements and account titles. Note whether accounts are joint, POD, or single-name.
3. Contact banks and financial institutions to report the death and ask about their requirements for releasing funds.
4. Search for a will and contact the county surrogate or probate court if one is found.
5. If accounts are frozen or ownership is unclear, consider consulting a probate attorney experienced with New Jersey intestacy and joint ownership.

Helpful Hints

• Do not withdraw or transfer funds from a deceased person’s account until you understand how the account is titled and whether you have legal authority. Unauthorized transfers can cause disputes and potential liability.
• Look closely at deed wording for real property. Words like “with right of survivorship,” “as joint tenants,” or “as tenants by the entirety” are significant.
• If you are jointly listed on an account but the balance came primarily from the deceased’s separate funds, keep records showing who contributed what. This can matter in disputes.
• Be aware of creditor claims. Even assets that pass outside probate may be subject to claims depending on how they were titled and funded.
• Use the New Jersey Courts self-help pages for forms and plain-language explanations: https://www.njcourts.gov/selfhelp/willsandprobate.html.
• When in doubt, consult a New Jersey probate or estate attorney to avoid mistakes that may be costly or irreversible.

Disclaimer: This article provides general information about New Jersey law and is not legal advice. It does not create an attorney-client relationship. For advice about a specific situation, consult a licensed New Jersey attorney.