FamiliaLista › Guides › Who gets your accounts: beneficiaries, POD and joint accounts in Texas

By Frank Flores, founder of FamiliaLista · Updated November 3, 2026

Who gets your accounts: beneficiaries, POD and joint accounts in Texas

Many accounts never go through your will. Life insurance, 401(k)s, IRAs and payable-on-death (POD) bank accounts go straight to the person named on the account's form. That makes the form more important than the will for those accounts, so check who's named and keep it current.

What passes outside the will?

Accounts with a named beneficiary: life insurance, retirement accounts like 401(k)s and IRAs, and POD bank accounts.
Joint accounts with a signed survivorship agreement. More on this below.
Transfer on death deeds for a house or land. See how to find a property deed in Texas.
A vehicle with a beneficiary designation. See vehicle titles after a death.
Property in a living trust. See living trust or will.

These go to the beneficiary by contract or deed, without a court's approval. The bank or insurer usually asks for a claim form, a copy of the death certificate and proof of identity. Source: Texas State Law Library, nonprobate property.

Does a joint account go to the other owner?

Only if the account has a written survivorship agreement signed by the person who died. Texas law says a survivorship right can't be assumed just because an account is joint or marked "JT TEN." An agreement is enough if it says something close to: "On the death of one party to a joint account, all sums in the account on the date of the death vest in and belong to the surviving party as his or her separate property and estate." Ask your bank to show you the signed agreement. Source: Tex. Estates Code ch. 113.

How does a POD account work?

With a signed POD agreement, the money in the account belongs to the POD payee when the owner dies, if that payee is still living. If you name two or more and they both survive you, they don't get each other's share unless the account terms say so. FDIC insurance on these accounts is $250,000 per owner for each different beneficiary, up to $1,250,000 per owner. Sources: Tex. Estates Code ch. 113, FDIC, deposit insurance at a glance.

What happens after a divorce?

In Texas, a divorce generally cancels an ex-spouse as beneficiary on POD and survivorship accounts, life insurance, IRAs and many financial plans. It doesn't if the divorce decree names the ex-spouse, you named them again after the divorce, or they receive the money for the benefit of a child. When the designation is canceled, the money goes to the backup beneficiary you named, so always name one. Sources: Tex. Estates Code ch. 123, Tex. Family Code ch. 9.

The big exception is employer plans covered by the federal ERISA law, like many pensions, 401(k)s and life insurance through work. Federal law overrides the Texas rule, so those plans pay whoever is on the form, even an ex-spouse. The Texas rule for retirement plans doesn't cover public retirement systems either. After a divorce, fill out a new form for each plan. Sources: Texas State Law Library, nonprobate property, U.S. Supreme Court, Egelhoff v. Egelhoff (2001), Tex. Family Code ch. 9.

How do you check and change who's named?

Bank: ask for the account agreement and whether it has a POD payee or a survivorship agreement.
401(k) or pension: check the plan's website or ask HR for the beneficiary form. Some plans require specific beneficiaries, such as a spouse.
IRA: the bank or brokerage that holds it has its own form.
Life insurance: call the insurer or the HR benefits office and ask for a change of beneficiary form.
When to update: after a marriage, divorce, birth or adoption, or the death of someone you named.

Sources: IRS, retirement topics: beneficiary, Texas State Law Library, nonprobate property.

What does someone who inherits an IRA or 401(k) need to know?

A spouse can roll the account into their own IRA or keep it as an inherited account.
Most other beneficiaries must empty the account by the end of the 10th year after the death.
Some beneficiaries can stretch payments over their lifetime: a spouse, the owner's minor child, someone disabled or chronically ill, or someone not more than 10 years younger than the owner.
Taxes: taxable withdrawals count as income, but the 10% early-withdrawal tax doesn't apply after the owner's death.

Sources: IRS, retirement topics: beneficiary, IRS, exceptions to the tax on early distributions, IRS Publication 590-B.

Who can open a safe deposit box after a death?

Without a court order, the bank may let the spouse, a parent, an adult child 18 or older, or the executor named in a copy of the will look inside, with a bank officer present. They can take out only three things: the will (it goes to the county clerk or the named executor), a burial plot deed or burial instructions, and a life insurance policy (it goes to the beneficiary). Everything else stays in the box until the law allows it out. Tell your family which bank holds the box, and keep copies of these papers somewhere else. Source: Tex. Estates Code ch. 151.

Checklist

[ ] A list of every bank account, with who's named on each one.
[ ] The survivorship agreement for each joint account.
[ ] Beneficiary forms for each 401(k), pension and IRA, with a backup named.
[ ] Beneficiary on each life insurance policy, including through work.
[ ] New forms after any marriage, divorce, birth or death.
[ ] Where the safe deposit box is, and who has the key.

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Frequently asked questions

Does a joint bank account automatically go to the other owner in Texas?

Only if the person who died signed a written survivorship agreement. Being joint, or marked JT TEN, is not enough on its own.

Does my will override the beneficiary on my life insurance or 401(k)?

No. Accounts with a named beneficiary pass by the account form, outside the will.

Does divorce remove my ex-spouse as beneficiary?

In Texas it generally does for POD accounts, life insurance and IRAs. Employer plans under ERISA pay whoever is on the form, so file a new form after a divorce.

Is this legal or financial advice?

No. It is general information from Texas law and official sources. A lawyer can help with your situation.

Sources

General information, not legal or financial advice. Rules change; check the official sources above or talk to a licensed professional about your situation.