How do bank beneficiary designations and CDs get handled when there is a will? - Pennsylvania
The Short Answer
In Pennsylvania, most bank accounts and CDs with a valid beneficiary (POD/TOD) designation or survivorship feature generally pass outside the will and outside the probate estate. A will typically controls only assets that are titled in the decedent’s name alone with no beneficiary/survivorship feature.
What Pennsylvania Law Says
Pennsylvania treats many bank-account-at-death transfers as nontestamentary—meaning they transfer by contract/ownership form rather than by the will. That’s why a bank may be able to confirm and pay a named beneficiary on an account even if the executor has not opened probate yet. CDs are handled the same way as other deposit accounts: what matters is the account title and the deposit agreement (for example, POD beneficiary, joint with right of survivorship, or “in trust for”/Totten trust), not what the will says.
The Statute
The primary law governing this issue is 20 Pa.C.S. § 6304 (Multiple-Party Accounts).
This statute establishes that survivorship rights and beneficiary designations on qualifying accounts generally control at death—and importantly, they cannot be changed by will. See 20 Pa.C.S. § 6304(d).
Relatedly, Pennsylvania law also states that these transfers are not treated as “testamentary” (not governed by the wills/intestacy rules) when they occur by survivorship/beneficiary designation. See 20 Pa.C.S. § 6306.
If your concern includes a spouse’s “allowance” or exemption claim, Pennsylvania provides a statutory family exemption that can affect what property is available for other heirs/beneficiaries. See 20 Pa.C.S. § 3121.
For additional background, you may also find helpful: Do beneficiary designations override a will in Pennsylvania? and How are bank accounts and CDs distributed under a will vs. a year’s allowance in Pennsylvania?.
Why You Should Speak with an Attorney
Even though the general rule is “beneficiary designations control,” disputes often arise when there are multiple accounts/CDs, unclear titling, or allegations of post-death changes and undue influence. Legal outcomes often depend on:
- Strict Rules on What the Will Can (and Cannot) Change: Pennsylvania law expressly provides that survivorship rights and beneficiary designations on covered accounts cannot be changed by will. See 20 Pa.C.S. § 6304(d). That makes it critical to classify each account correctly.
- Burden of Proof and Account Classification: Whether an account is truly a survivorship account, a POD/trust account, or something that falls into the estate can turn on bank records and the deposit agreement. Some situations fall into “other cases” where the decedent’s rights become part of the estate. See 20 Pa.C.S. § 6304(c).
- Exceptions, Challenges, and Fiduciary Issues: If there are credible concerns about capacity, undue influence, or improper changes after death (including title changes to a house), those issues can trigger Orphans’ Court litigation and fiduciary/accounting problems that are easy to mishandle without counsel.
When an executor has not opened probate, when a spouse is asserting statutory claims, and when there are allegations of improper transfers, it is especially important to get advice early—because the “right” answer may differ account-by-account, and mistakes can be hard to unwind.
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Disclaimer: This article provides general information under Pennsylvania law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.