A Comprehensive Legal Overview

I. Introduction

The death of a spouse is emotionally and administratively overwhelming. One of the first practical issues that often arises is: “Can I access our joint bank accounts?”

In the Philippines, the answer is not as simple as “yes, because my name is also on the account.” What happens to joint deposits is shaped by:

The type of joint account (“and” vs “or/and/or”),
The marital property regime (absolute community, conjugal partnership, separation of property),
The law on succession and compulsory heirs,
Bank internal policies, and
Tax rules on estates, especially estate tax and BIR clearances.

This article explains, in a Philippine context, how joint bank accounts are treated when one spouse dies, both in law and in practice.

Important: This is general legal information, not a substitute for advice from a Philippine lawyer who has reviewed your specific documents and facts.

II. Legal Framework

Several bodies of law intersect in this situation:

Civil Code & Family Code
- Rules on property regimes between spouses (absolute community of property, conjugal partnership of gains, separation of property).
- Rules on co-ownership (when two or more persons own property together).
- Rules on succession – who inherits, how much, and how the estate is settled.
Banking Laws and Regulations
- Rules governing bank deposits and relationships between bank and depositor.
- Banks’ obligations to act prudently, to avoid disputes among heirs, and to comply with tax and anti-money laundering laws.
Tax Law (Estate Tax)
- The estate tax system under the National Internal Revenue Code (NIRC), as amended (e.g., by TRAIN Law).
- Requirements for estate tax returns, payment, and issuance of eCAR (electronic Certificate Authorizing Registration) or similar BIR clearances before banks can release certain deposits of a deceased person.
Procedural Rules
- Extrajudicial settlement of estate (if allowed, when there is no will and no dispute, and all heirs are of age or represented).
- Judicial settlement (testate or intestate proceedings in court).

III. Nature of Joint Bank Accounts Under Philippine Law

A. What is a Joint Bank Account?

A joint bank account is an account in the name of two or more persons. Common forms:

“A and B” – requires the joint action/signature of both depositors to withdraw or transact.
“A or B” / “A and/or B” – either depositor, acting alone, can generally withdraw or transact.

Spouses often open accounts as:

“Mr. Juan Dela Cruz and/or Mrs. Maria Dela Cruz”

This is convenient for everyday transactions, but it does not automatically override inheritance rules.

B. Co-ownership and Presumption of Shares

As a default, the law tends to treat joint accounts as a form of co-ownership:

Presumption of equal shares (50–50) unless there is proof that deposits came from one party only or in different proportions.
This presumption can be rebutted by evidence (e.g., payslips, contracts, remittance records) showing who actually funded the account.

However, that co-ownership analysis interacts with the marital property regime, discussed below.

C. Account Label vs. Succession Law

Even if a joint account is labeled with a “right of survivorship” (e.g., “whoever survives may withdraw all”), Philippine law and jurisprudence have generally held:

Succession rules and legitimes of compulsory heirs cannot simply be defeated by a bank account label.
A “survivorship clause” may be treated as a donation mortis causa or as a contractual stipulation, which must comply with strict formalities to be valid; if it does not, the portion belonging to the deceased still forms part of the estate.

Thus, the surviving spouse cannot automatically claim 100% of the joint account just because of a survivorship label, especially if there are other heirs (children, parents, etc.) entitled by law.

IV. Effect of the Marital Property Regime on the Joint Account

Before determining what happens upon death, you must first know what kind of property regime applied to the marriage.

A. Absolute Community of Property (ACP)

This is the default regime for most marriages celebrated without a valid prenuptial agreement, especially after the Family Code took effect.

General rule: All property owned by either spouse at the time of marriage and acquired thereafter becomes part of the absolute community, with limited exceptions (e.g., certain personal or exclusive properties such as those acquired by gratuitous title with express stipulation).

Implications for joint accounts:

Source of funds matters
- If deposits came from income earned during the marriage (salary, business, etc.), those funds are ACP property, regardless of whose name appears on the account.
- A joint account may simply be one manifestation of ACP property.
Upon death of one spouse:
- The ACP is dissolved.
- First, identify and liquidate the community property (including bank accounts).
- Generally, ½ of the community belongs to the surviving spouse, and the other ½ forms the estate of the deceased, to be distributed to heirs.
If the joint account was only one of several assets, you cannot just assume “half of that account is mine and half is estate” in isolation; you must see the overall community pool. But for practical treatment, many banks and parties use that 50–50 starting assumption, subject to formal settlement.

B. Conjugal Partnership of Gains (CPG)

For some older marriages or specific cases, CPG may apply.

Each spouse retains exclusive ownership of properties brought into the marriage,
But “gains” or benefits acquired during the marriage (income from work or property, etc.) are conjugal.

For a joint account:

If it consists of gains/conjugal funds, it’s conjugal property, even if only one spouse’s name is on the account (and more so if both names are there).
Upon death, the conjugal partnership is liquidated: generally, each spouse is entitled to ½ of the net conjugal property, and the deceased’s half goes to the estate.

C. Separation of Property

If there is a valid marriage settlement (prenup) establishing complete separation of property, each spouse owns their exclusive assets and earnings, unless they deliberately co-own something.

In that case:

A joint account is normally treated as co-owned by the spouses per their actual contributions or presumed equal if contributions are unclear.
The deceased’s share enters the estate; the surviving spouse keeps their own share.

D. Key Point

Even with a joint account, you must still ask:

What regime applies?
Were the funds community/conjugal or exclusive?
What are the actual or presumed shares of each spouse?

V. What Happens to a Joint Account When One Spouse Dies?

A. Legal Rights vs. Bank Practice

There are two layers:

Substantive rights under civil, family, and succession laws – who actually owns what.
Operational rules and risk management observed by banks – what they will or will not allow without clearances.

Sometimes, even when the surviving spouse legally owns a share, banks still temporarily restrict access to protect themselves and to avoid releasing estate property without tax compliance or heirs’ consent.

B. Accounts in the Name of “Spouse A and/or Spouse B”

Before death:

Either spouse can usually withdraw or transact independently.

After one spouse’s death, in practice:

Once the bank is notified of the death, it may:
- Freeze the entire account, or
- Allow withdrawals only up to the presumed share of the surviving spouse (e.g., 50%), or
- Require BIR estate tax clearance and estate settlement documents before releasing any amount corresponding to the deceased’s share.

Banks are cautious because:

The deceased’s share is part of the estate, subject to compulsory heirs’ rights and estate tax.
If they release funds to only one person without safeguards, they risk claims from other heirs or tax authorities.

C. “And” Accounts (Both Must Sign)

If the account is “Spouse A and Spouse B”:

During the marriage, both usually must sign to withdraw.
Upon death of one, the account becomes practically unusable without estate settlement, since the deceased can no longer sign.

Banks normally require:

Proof of death
Estate documents (extrajudicial settlement or court order)
BIR estate tax clearance (eCAR, bank-specific BIR certificate)

before allowing withdrawal or closure.

D. Survivorship Clauses

Some joint accounts have a “right of survivorship” clause, stating that the surviving co-depositor becomes the sole owner of the funds upon the death of the other.

Under Philippine law:

Such clauses are not automatically controlling if they conflict with compulsory heirs’ legitimes.
The deceased’s share, especially if it involves common or conjugal funds, may still be subject to estate and legitime rules, and may be treated as a form of donation that must observe formalities and limitations.

Thus, even with a survivorship clause, a bank may still:

Require estate tax clearance and settlement documents, or
Release funds only upon presentation of documents protecting the rights of other heirs.

VI. Estate Tax and BIR Requirements for Bank Deposits

A. Estate Tax Basics (General Principles)

When a person dies, their estate (all properties and rights they leave behind) is subject to estate tax if it exceeds certain thresholds and after allowable deductions.

In general:

An estate tax return must be filed within a specific period (commonly one year from death, subject to extensions).
Estate tax must be paid, if due, based on the net value of the estate.
The BIR then issues an estate tax clearance (e.g., eCAR) for specific properties, including bank deposits.

B. Restrictions on Bank Withdrawals

Philippine tax rules impose specific restrictions on withdrawals from bank deposits when the depositor has died. Generally:

Banks are not allowed to permit withdrawal of the deceased’s deposits beyond certain limited exceptions unless an estate tax clearance or BIR certification is presented.
Sometimes a limited withdrawal (e.g., a percentage or capped amount) may be allowed to cover funeral expenses, medical bills, or administrative expenses of the estate, subject to specific conditions and withholding of a certain percentage for potential estate tax.

The exact conditions and amounts depend on the current BIR regulations, but the pattern is:

Identify which deposits belong to the deceased (including shares of joint accounts).
File estate tax return.
Pay estate tax, if any.
Obtain eCAR or appropriate BIR certificate for those deposits.
Present documents to the bank so it can release/transfer the funds to the heirs/surviving spouse.

Even if you are the surviving joint depositor, the portion attributable to the deceased is usually treated as part of the estate and covered by these rules.

VII. Settling the Estate and Accessing the Account: Step-by-Step

Below is a general roadmap when a spouse with joint bank accounts dies.

Step 1: Gather Basic Documents

Death certificate of the deceased spouse.
Marriage certificate.
IDs and proof of identities of surviving spouse and other heirs.
Bank documents: passbook, ATM card, account opening documents (if available).
Any prenuptial agreement or marriage settlement.
Will, if one exists.

Step 2: Determine Property Regime and Estate Composition

Confirm if the marriage was under ACP, CPG, or separation of property.
List all assets and liabilities of the deceased, including:
- Bank deposits (joint and individual accounts),
- Real properties,
- Vehicles,
- Investments, etc.
Identify compulsory heirs:
- Legitimate/illegitimate children and descendants,
- Surviving spouse,
- Legitimate parents/ascendants (if no children), etc.

Step 3: Notify the Bank

Inform the bank of the death. The bank will:

Mark the accounts accordingly.
Explain their internal procedures and document requirements, which may include:
- Death certificate,
- IDs of surviving co-depositor and heirs,
- Estate settlement documents (extrajudicial settlement or court order),
- BIR estate tax clearance.

Expect that:

Some or all of the account may be temporarily frozen until requirements are satisfied.
The bank may allow limited withdrawals if permitted by tax regulations and its policies.

Step 4: Decide on Mode of Estate Settlement

A. Extrajudicial Settlement (Out of Court)

Possible if:

The deceased left no will,
All heirs are of legal age (or minors are represented properly),
There is no serious dispute among heirs.

Process typically involves:

Preparing a Deed of Extrajudicial Settlement of Estate or similar document, identifying:
- The heirs,
- All estate properties (including bank deposits, with details),
- How these properties are to be divided.
Executing the deed before a notary public.
Publishing the extrajudicial settlement in a newspaper of general circulation for three consecutive weeks (as generally required when real estate is involved; many practitioners also observe this for estates with varied assets as a matter of prudence).
Paying estate tax and obtaining BIR clearances for relevant properties, including deposits.

For bank accounts:

The extrajudicial settlement usually states who gets what share of the deposit.
Together with the BIR clearance, this is presented to the bank so it can release funds accordingly.

B. Judicial Settlement (Court Proceedings)

Required or advisable if:

There is a will (testate proceedings),
There are disputes among heirs,
There are complications (contested properties, unknown heirs, etc.).

Court orders will:

Determine the validity of the will (if any).
Identify heirs and their shares.
Approve the project of partition.

Banks will usually require certified copies of the court orders, plus BIR clearance, before releasing estate funds.

Step 5: Filing the Estate Tax Return and Obtaining Clearance

The estate tax return is filed with the BIR, attaching:
- Inventory of properties (including the bank deposits and their values at time of death),
- Supporting documents (titles, bank certifications, etc.),
- Settlement documents (extrajudicial deed or court orders),
- Death certificate, marriage certificate, etc.
After review and payment of assessed estate tax (if applicable), the BIR issues clearances (eCAR or equivalent) specifically covering the deposits.

Step 6: Presenting Documents to the Bank and Releasing the Funds

Once you have:

Death certificate,
Heirs’ IDs,
Settlement document (notarized extrajudicial settlement or court orders), and
BIR clearance for deposits,

you can return to the bank and:

Request closure of the joint account, and
Release or transfer of funds according to the settlement (e.g., transfer to surviving spouse’s individual account, issue checks to heirs, etc.).

The bank may have its own internal forms and additional requirements, but the core legal requirements revolve around estate settlement and tax clearance.

VIII. Common Special Scenarios

1. Joint Account with Spouse and a Child (or Third Party)

Example: “Spouse A and/or Spouse B and/or Child C”

Issues:

Determine who actually contributed funds.
Part of the deposit may be property of the child/third party, not part of the estate.
For the deceased spouse’s share, succession and estate tax rules still apply.

Banks may:

Require evidence of ownership/contribution or
Treat the account as co-owned equally (⅓ each, for instance), unless otherwise shown.

The surviving co-depositors can usually claim their own share, but the deceased’s share must go through estate settlement.

2. Account in One Spouse’s Name Only, Funded with Conjugal/Community Money

Legally, if the money is conjugal or community property, it is part of the matrimonial property system, even if the account name only reflects one spouse.

Upon that spouse’s death:

The surviving spouse may be entitled to a share (ACP or CPG rules), and
The rest forms part of the estate.

Banks will treat it as a single-holder account, so the surviving spouse usually has no direct authority over it without estate documentation, even if they are legally entitled to a share.

3. Foreign Currency Deposits

Foreign currency accounts (e.g., USD deposits) are generally subject to:

The same ownership and succession rules,
Special rules on forex controls and foreign currency deposit protection.

For estate purposes, they must still be included in the estate tax return, converted to Philippine pesos at the applicable valuation date.

4. Accounts in Foreign Branches or Foreign Banks

If the joint account is held abroad:

Local Philippine estate and succession rules may still apply to the personal law of the decedent and to the estate as a whole,
But the foreign bank will follow the laws and banking regulations of that foreign jurisdiction, plus its own policies.

You may need separate probate or ancillary proceedings abroad, and comply with that country’s inheritance and tax laws in addition to Philippine law.

IX. Bank Secrecy and the Rights of Heirs to Information

Philippine bank secrecy laws protect the confidentiality of deposits. However, in estate situations:

Heirs, legal representatives, or executors usually have the right to request information and certifications regarding the decedent’s deposits, subject to proper proof of their status and compliance with legal formalities.
Banks may require:
- Death certificate,
- Proof of authority (e.g., court appointment, extrajudicial settlement with SPA),
- Valid IDs.

Information from the bank is often crucial for:

Estate inventory,
Estate tax returns, and
Settlement documents.

X. Practical Tips and Risk Management for Couples

Understand Your Property Regime
- Know whether your marriage is under ACP, CPG, or separation of property.
- Keep a copy of your prenup if you have one.
Document Ownership and Contributions
- For joint accounts, especially involving children or other relatives, keep clear records of who contributed what.
- This helps avoid disputes and clarify which parts form part of the estate.
Avoid Using Joint Accounts to Evade Estate Tax
- Simply adding someone as a joint depositor or labeling an account with survivorship rights does not guarantee avoidance of estate tax or succession rules.
- Authorities and courts can look through form to substance.
Consider Proper Estate Planning Tools
- Valid wills,
- Lawful donations inter vivos (if appropriate and properly formalized),
- Life insurance with properly designated beneficiaries,
- Lawful corporate or trust structures (handled with specialized advice).
Maintain Liquidity Outside Heavily Restricted Deposits
- Some couples maintain a small personal emergency fund in the name of the surviving spouse or in a structure that reduces immediate freezing issues, while still complying with tax and succession laws.
Communicate with Heirs in Advance
- Clear communication and documentation can reduce disputes and speed up settlement when death occurs.

XI. Summary

In the Philippines, accessing joint bank accounts after a spouse’s death is rarely as simple as “I’m also on the account, so I can withdraw everything.” Key takeaways:

Joint accounts are generally treated as co-owned, but the precise shares depend on actual contributions and the marital property regime.
When one spouse dies, the deceased’s share becomes part of the estate, subject to succession, compulsory heirs’ rights, and estate tax.
Banks often freeze or restrict withdrawals from joint accounts upon notice of death, to protect against disputes and tax non-compliance.
To access funds properly, the surviving spouse and heirs typically must:
1. Notify the bank and comply with its documentation requirements,
2. Settle the estate (extrajudicially or in court),
3. File the estate tax return, pay estate tax (if due), and obtain BIR clearance,
4. Present these documents so the bank can release the deposits according to the settlement or court order.

Because each case can involve unique facts, multiple heirs, foreign elements, or complex property history, it is wise to consult a Philippine lawyer experienced in estate and banking matters before taking major steps or signing settlement documents.