The Short Answer

Usually, a payable-on-death (POD) bank account passes directly to the named beneficiary and is not part of the probate estate—so the personal representative generally cannot simply “use” it to pay estate creditors. However, depending on the account setup and who received the funds, there are situations where POD funds may end up in the estate (or the recipient may face liability), which is why you should get Florida probate counsel involved early.

What Florida Law Says

In Florida, a POD designation is designed to transfer the account balance at death to the named beneficiary outside of probate. That means the money typically does not flow into the estate checking account that the personal representative uses to pay creditors. If there is no surviving POD beneficiary, the funds generally belong to the decedent’s estate.

The Statute

The primary law governing this issue is Fla. Stat. § 655.82.

This statute establishes that, when the last account owner dies, the sums on deposit generally belong to the surviving POD beneficiary (and are not part of the estate), but if no beneficiary survives, the sums on deposit belong to the estate.

If you’re dealing with beneficiary-designated assets more broadly (like transfer-on-death securities), Florida law also recognizes these as non-testamentary transfers and notes that creditor rights may still exist under other laws. See Fla. Stat. § 711.509.

Related reading: If you’re trying to understand how beneficiary designations interact with probate planning, see Do I Need POD/TOD Beneficiary Designations in Florida If My Will Leaves Everything to My Daughter?.

Why You Should Speak with an Attorney

Even though POD accounts are meant to avoid probate, creditor problems often arise when the probate estate is insolvent (not enough probate assets to pay valid claims). Whether POD funds can or should be used can turn on details that create real legal risk for the personal representative and the beneficiary.

• Strict Deadlines: Florida creditor claim deadlines can be unforgiving; missing an objection deadline or paying the wrong party at the wrong time can create personal liability or litigation exposure.
• Burden of Proof: If someone challenges the account’s ownership, beneficiary designation, or alleges improper transfers, the evidence (account agreements, signature cards, bank records, capacity/undue influence facts) matters.
• Exceptions and Liability Issues: Even when an asset is nonprobate, disputes can arise about whether funds should be pulled back into the estate, whether a beneficiary must contribute, or whether the estate can access the account because no beneficiary survived under Fla. Stat. § 655.82.

When creditors are pressing and the estate is short on cash, the “right” move is often strategic (and fact-specific). A Florida probate attorney can evaluate whether the POD account is truly outside the estate, whether it can be accessed by the personal representative, and how to reduce the risk of later lawsuits by creditors or beneficiaries.

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Disclaimer: This article provides general information under Florida 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.