How to Close a Bank Account When Someone Dies

Closing bank accounts is a necessary task when settling a deceased person’s estate. This guide provides clear, practical information on managing and closing bank accounts following a death, aiming to simplify the process during a difficult time.

Determining Who Can Act

The authority to access and close a deceased person’s bank account depends on its structure. Different account types dictate who is legally empowered to manage funds and interact with the financial institution. Understanding these distinctions is a first step before initiating any actions.

For accounts held jointly with rights of survivorship, the surviving account holder retains full access and ownership. The remaining owner can close it by presenting a certified death certificate. If an account had a Payable-on-Death (POD) designation, the named beneficiary can claim the funds directly by providing proof of identity and a certified death certificate. This mechanism bypasses the probate process, allowing for immediate asset transfer.

When an account is solely owned by the deceased and no POD beneficiary was named, authority falls to a court-appointed representative. If the deceased left a will, the executor named obtains authority through Letters Testamentary. This document, issued by a probate court, grants the executor power to manage the deceased’s estate, including bank accounts.

If a person dies without a valid will (intestacy), a probate court appoints an administrator who receives authority through Letters of Administration. Both Letters Testamentary and Letters of Administration are official court orders confirming the individual’s legal right to manage the deceased’s financial holdings. Trustees for accounts held in a formal trust derive their authority from the trust agreement and administer assets according to its terms, often requiring a copy of the trust document.

Required Documentation

Financial institutions require specific documentation to verify an account holder’s death and confirm the authority of the individual closing the account. Gathering these documents in advance can help streamline the process.

A certified copy of the death certificate is a universal requirement, serving as official proof of death. Obtain multiple certified copies, as banks keep a copy for their records. The person acting on behalf of the deceased’s estate must also present valid photo identification, such as a driver’s license or passport.

Proof of authority takes various forms depending on the account structure and estate details. For executors named in a will, Letters Testamentary, issued by a probate court, grant the power to act. If there is no will, Letters of Administration, also a court order, confirm the administrator’s legal right to manage the estate’s finances. These court documents empower the designated individual to access and control the deceased’s accounts.

For smaller estates, a Small Estate Affidavit may avoid the full probate process. This document allows heirs to claim property if the estate’s value falls below a state-specific threshold, which varies widely by state. For accounts held in a trust, a copy of the trust agreement is necessary to demonstrate the successor trustee’s authority. Banks may also request the deceased’s Social Security number and account number.

Steps to Take with the Bank

Once authority is established and documentation assembled, the next step involves direct interaction with the financial institution to close the account. This process begins with notifying the bank and presenting the prepared documents for their review.

Contact the bank directly, by phone or by visiting a branch, to explain the situation and inquire about their procedures for deceased accounts. Some banks may have dedicated bereavement departments or require appointments. Upon notification, banks often freeze solely owned accounts, while joint accounts remain accessible to the surviving owner. The bank will then review the certified death certificate, identification, and proof of authority, such as Letters Testamentary, Letters of Administration, a Small Estate Affidavit, or the trust agreement.

After validating the authority and documentation, the bank will handle the account balance. Funds may be transferred to an estate account, directly to a named beneficiary, or to a surviving joint owner, depending on the account type and legal documentation provided. The bank can issue a cashier’s check for the remaining balance or arrange for a direct deposit into an authorized account. Discuss how outstanding checks, direct deposits, or automatic payments will be managed; banks generally stop automated transactions upon notification of death and may return incoming payments.

Any outstanding debts owed to the bank by the deceased, such as overdrafts or personal loans, may be addressed during this process. The bank will apply any available funds from the deceased’s accounts to cover these obligations before distributing the remaining balance. After all funds are disbursed and any outstanding matters are resolved, the account will be formally closed. Request written confirmation of the account closure for personal records.