What happens to your PayPal accounts when you die

PayPal Balance Account

Holds funds received through PayPal and supports direct deposit. There is no POD/TOD beneficiary designation and no way to title the account to a trust. At death the balance is released only through PayPal's deceased account closure process, and PayPal will take instructions solely from the authorized executor or administrator of the estate. Balances from PayPal Savings are swept here when Synchrony closes the savings account, so this is the account an executor ultimately claims.

PayPal Savings

High-yield savings account provided by Synchrony Bank, Member FDIC, and eligible for FDIC insurance up to $250,000. The APY is variable and can change at any time. The Synchrony deposit account agreement is explicit: "You are the sole owner of your account. You may only own one account. You may not add additional owners or beneficiaries." There is therefore no POD/TOD designation, no joint ownership, and no trust titling. The same agreement caps the total balance at $250,000. On notice of the holder's death, Synchrony may hold the account, retain funds until the successor is identified, require proof of death, and close the account by transferring the entire balance to the deceased holder's PayPal Balance -- which is then claimed through PayPal's deceased account closure process. Requires a PayPal Balance account; personal accounts only.

PayPal Debit Mastercard

Debit card issued by The Bancorp Bank, N.A. that spends directly from the PayPal Balance Account. It carries no beneficiary designation of its own and is cancelled when the account is closed. An executor should stop using or allowing use of the card once the holder dies -- spending from the decedent's balance is spending estate assets.