What happens to a joint account if one of the holders dies?

If each holder could withdraw money on their own (an either-to-sign account), the bank lets the other holder carry on doing so. If both signatures were needed (a both-to-sign account), the signatures of the other holder and of all the heirs are now needed. In both cases, the deceased's money belongs to their heirs, because being named as a holder does not make anyone the owner of the money.

Alburquerque Abogados

José Manuel Alburquerque
Inheritance and succession

Either-to-sign account (“indistinta” or “solidaria”)

  • The bank lets the other holder carry on withdrawing money. It only freezes the account if the contract provides for this or if the heirs object.
  • But only what the other holder paid in is theirs. The deceased's share belongs to his or her heirs. If the other holder keeps it, the heirs can claim it from them.
  • If it cannot be shown who paid the money in, it is presumed to belong to the holders in equal shares.

Both-to-sign account (“conjunta” or “mancomunada”)

  • The other holder cannot carry out any transaction, not even withdraw their own money, without the signature of all the heirs.
  • The bank does not release the deceased's share until the heirs prove that they are heirs and that they have paid the “impuesto de sucesiones”, the Spanish inheritance tax.

The child named on a parent's account

Many parents add one of their children as an account holder so that the child can help them with payments. That does not make the child the owner of the money, unless he or she proves that it was a gift. That money forms part of the estate and is divided among all the heirs. If the child keeps it, the other heirs can claim their share from him or her.

For inheritance tax, what is declared is what belonged to the deceased, which need not be half. If all the money belonged to the deceased, as in the case of the child, all of it is declared.

This answer is provided for educational purposes and offers initial guidance on the question raised. Every matter has its own circumstances and nuances that require individual assessment. For that reason, before taking decisions with significant consequences, it is advisable to consult a professional and not to rely solely on this information. Personalised advice makes it possible to apply these explanations to the specific case and to assess the options available with greater certainty.