The death of a spouse immediately raises practical questions about money. In the Philippines, one of the most common concerns is what happens to joint bank accounts. The rules are a mixture of banking practice, the Family Code, the Civil Code, BSP regulations, the National Internal Revenue Code, and established Supreme Court jurisprudence. This article explains everything the surviving spouse (and the heirs) need to know as of December 2025.

1. Types of Joint Bank Accounts in the Philippines

Philippine banks offer three main forms of joint accounts:

AND account – Both depositors must sign for every withdrawal or transaction.
OR account – Either depositor may withdraw the entire balance alone.
AND/OR account – The most common form for married couples. Either may transact alone (“OR”), but both may also sign together (“AND”).

When a joint account is opened, the bank requires the depositors to sign a Joint Account Agreement. In almost all banks (BPI, BDO, Metrobank, Security Bank, PNB, UnionBank, etc.), the standard form contains a survivorship clause that reads substantially as follows:

“In case of death of any of us, the balance shall belong to the survivor/s and the Bank is hereby authorized to allow withdrawal by the survivor/s without need of further authority.”

If the box for survivorship is ticked (it almost always is for spouses), the clause is activated.

2. Immediate Effect of Death on the Joint Account

The surviving spouse may withdraw or take full control of the entire balance immediately, even the same day the death certificate is presented.

Philippine banks do not freeze a joint AND/OR account with survivorship upon the death of one depositor. This is the exact opposite of what happens to the deceased’s sole accounts, which are frozen until BIR estate tax clearance is obtained.

Standard bank requirements for release of the entire joint account to the survivor (2025 practice):

Original or certified true copy of the Death Certificate (PSA-issued)
Marriage Certificate (PSA-issued)
At least two valid government IDs of the surviving spouse
Original passbook or ATM card (if any)
Accomplished bank forms (Claim Form, Affidavit of Survivorship, Letter of Instruction)
Sometimes a notarized Special Power of Attorney if the survivor cannot personally appear

Once these are submitted, the bank will either:

Transfer the account to the sole name of the surviving spouse, or
Allow full withdrawal, or
Issue manager’s checks/cashier’s checks in the survivor’s name.

Processing time is usually 1–7 banking days.

3. Legal Basis Why Banks Release the Entire Amount to the Survivor

The survivorship clause is a contractual stipulation pour autrui (a stipulation in favor of a third person — the survivor) that is valid and binding under Articles 1311 and 1308 of the Civil Code.

The Supreme Court has repeatedly upheld these clauses:

Rivera v. People’s Bank and Trust Co. (G.R. No. L-16346, March 31, 1962)
Santos v. Court of Appeals (G.R. No. 90205, August 21, 1990)
Vitug v. Court of Appeals (G.R. No. 82027, March 29, 1990)
Heirs of Cupido v. Macandog (G.R. No. 217069, February 9, 2022 – most recent reiteration)

The Court has consistently ruled that the survivorship agreement is valid and the amount passes to the survivor by virtue of the contract with the bank, not by succession. The bank is bound to deliver the money to the survivor and cannot be compelled by the heirs or the estate administrator to deliver any portion to them.

4. Estate Tax Treatment (BIR Position vs. Banking Reality)

This is where the confusion usually arises.

BIR position (Revenue Regulations No. 2-2003, as amended by RR 12-2018 – TRAIN Law):

Deposits in the name of spouses in joint accounts are presumed conjugal/community property.
Only 50% of the balance as of date of death is included in the gross estate of the deceased spouse.
The surviving spouse must still file an Estate Tax Return (BIR Form 1801) if the total gross estate (including the 50%) exceeds ₱5,000,000 (₱10 million family home allowance is separate).
Estate tax rate is 6% on the net taxable estate (after deductions and exemptions).

Important: The BIR does not require estate tax clearance (eCAR) before the bank releases the joint account funds to the surviving spouse. Banks release the money even if estate tax has not yet been paid.

In practice, therefore, the surviving spouse gets 100% immediately from the bank, but must declare 50% in the estate tax return and pay 6% on the deceased spouse’s net share.

5. Can the Children or Other Heirs Claim Part of the Money Later?

Yes, in theory — but it is extremely difficult in practice.

Because the funds are presumed conjugal, the children (compulsory heirs) are entitled to their legitime on the deceased parent’s 50% share.

However:

The bank has already validly paid the entire amount to the surviving spouse pursuant to the survivorship agreement.
The children’s remedy is to file a case against the surviving parent (not the bank) for recovery of their legitime or for collation if the amount is considered an advance inheritance.
Most children do not sue their surviving parent.
If they do sue, the surviving spouse can raise the defense that the money was used for family living expenses, medical bills, funeral expenses, etc., which are deductible or chargeable against the estate anyway.

In short: the survivorship clause effectively allows the surviving spouse to keep the entire amount in almost all real-world cases.

6. Special Cases

a. No survivorship clause was signed or the box was not ticked
The account is treated as ordinary co-ownership. The survivor is entitled only to 50% immediately. The other 50% forms part of the estate and requires extrajudicial settlement or judicial probate before release.

b. The account is a foreign currency deposit (FCDU)
Bank secrecy under R.A. 6426 is stricter, but the survivorship rule still applies. Banks still release the entire amount to the survivor upon submission of the usual documents.

c. One spouse funded the account exclusively with paraphernal/separate funds
The presumption of conjugality can be rebutted with clear evidence (e.g., the money came from inheritance or sale of exclusive property). If proven, 100% may be treated as exclusive property of the survivor or of the deceased (depending on who owned it). This is rarely litigated successfully.

d. Safe deposit box jointly rented
Different rules. The box is sealed upon death, and inventory in the presence of BIR, heirs, and bank is required before the survivor can access the contents (BSP Circular 839, series of 2014).

7. Practical Steps for the Surviving Spouse (Checklist)

Obtain multiple PSA death certificates (at least 10 originals).
Go to the bank branch where the account was opened as soon as possible with the documents listed in Section 2.
Decide whether to keep the account open in your sole name or close it.
Within one year from death, file the Estate Tax Return (BIR Form 1801) and pay the 6% tax on the deceased’s 50% share (plus other assets).
Keep records in case children later question the disposition.

8. How to Make It Absolutely Clear That the Money Goes 100% to the Survivor (Estate Planning Tips)

Open the joint account with explicit survivorship clause (most banks already do this).
Execute a Deed of Donation Mortis Causa of the funds (notarized, but still subject to donor’s tax if revoked).
Convert part of the funds to a Revocable Living Trust or place in UITFs with named beneficiary.
Some banks now offer Payable-on-Death (POD) or In-Trust-For (ITF) accounts — use these if available.
Buy life insurance or PRULife UK / Sun Life VUL policies with the spouse as irrevocable beneficiary — proceeds are 100% exempt from estate tax.

Conclusion

In Philippine practice as of 2025, a properly opened joint AND/OR account with survivorship gives the surviving spouse immediate, full, and practically irrevocable access to the entire balance. The bank will not freeze the account and will release the money upon presentation of the death certificate and marriage contract. While the BIR technically includes only 50% in the gross estate, the survivorship clause has been upheld by the Supreme Court for decades and effectively allows the survivor to retain 100% in the overwhelming majority of cases.

This mechanism remains the simplest and most effective way for Filipino couples to ensure that the surviving spouse has immediate liquidity upon the death of the other.