How to Close a Deceased Person’s Bank Account

When a loved one passes away, managing their financial affairs can be a challenging responsibility. Addressing bank accounts is a necessary step in settling an estate. Understanding the correct procedures and who has the authority to act can help streamline this process, ensuring a smooth transition of assets.

Identifying Who Can Close the Account

The authority to close a deceased person’s bank account rests with specific individuals or entities, determined by legal documentation and account structure. An executor, named in a valid will, is the primary individual granted this power. Their authority is formally recognized through Letters Testamentary, a court document confirming their appointment and legal standing to manage the deceased’s estate assets.

If a person dies without a will, a court will appoint an administrator for the estate. This individual receives their authority through Letters of Administration, a legal document similar to Letters Testamentary. Both Letters Testamentary and Letters of Administration are issued by a probate court and demonstrate legal authority to the bank.

Joint account holders also possess inherent authority to manage and close a shared bank account upon the death of one of the account owners. Most joint accounts are structured with “rights of survivorship,” meaning the surviving owner automatically becomes the sole owner of the funds. This arrangement bypasses the probate process for that specific account, allowing the survivor to continue using or close the account by presenting a death certificate to the bank.

Certain accounts may also designate a “Payable On Death” (POD) beneficiary. A POD designation allows the account funds to pass directly to the named beneficiary upon the account holder’s death, without going through probate. The beneficiary can claim the funds and close the account by presenting their identification, the deceased’s death certificate, and completing specific bank forms related to the POD designation.

Assembling Required Documentation

Before approaching a financial institution to close a deceased person’s bank account, gather several specific documents. A certified copy of the death certificate is universally required by banks to confirm the account holder’s passing. This official document is obtained from the state or county vital records office where the death occurred.

The deceased’s Social Security number is another piece of information banks will request for identification and tax reporting purposes. Having the number readily available will assist the bank in verifying the account holder’s identity and processing the closure accurately. Knowledge of the deceased’s bank account number(s) is also necessary to identify the specific accounts to be closed. This information can be found on bank statements, checks, or the deceased’s financial records.

The individual closing the account must also present their own valid government-issued identification, such as a driver’s license or passport, to verify their identity. An executor or administrator will need to present original or certified copies of Letters Testamentary or Letters of Administration, issued by the probate court, to demonstrate their legal right to access and manage the estate’s assets.

For smaller estates that may qualify for a simplified probate process, a Small Estate Affidavit might be accepted by the bank. This document allows for the transfer of assets without full probate proceedings if the estate value falls below a certain threshold. In cases where a trust holds the bank account, a copy of the Trust Agreement will be necessary to identify the successor trustee and outline their authority over the trust’s assets. Banks may also have their own specific forms, such as an affidavit of domicile or beneficiary claim forms, which will need to be completed.

Steps for Closing the Account

Once all necessary documentation has been assembled, the next step involves initiating contact with the financial institution. This can be done in person by visiting a local branch, or some banks may accommodate requests via certified mail.

When submitting the prepared documents, ensure all certified copies of the death certificate, original Letters Testamentary or Letters of Administration, and your personal identification are presented. The bank will review these items to verify your authority and the details of the deceased’s account. Confirm with the bank representative how they prefer to receive and verify these official documents.

A crucial aspect of closing the account involves handling any outstanding transactions. This includes identifying and resolving pending checks, direct deposits, and automatic payments that may still be linked to the account. You may need to provide instructions to redirect future direct deposits, such as Social Security benefits, or to stop them entirely. Automatic bill payments should be re-established with new payment methods to avoid missed payments.

After addressing outstanding transactions, you will need to provide instructions for the transfer or distribution of the remaining funds. This involves transferring the balance to a new estate account, issuing a cashier’s check to the estate or named beneficiary, or arranging a wire transfer. The bank will process these instructions according to their internal procedures and the legal documentation provided.

Upon completion of the transfer, obtain confirmation of the account closure from the bank. This might be a formal letter, a statement showing a zero balance, or a specific confirmation number. This documentation serves as proof that the account has been successfully closed and that the bank’s records have been updated. The closure process takes several business days to a few weeks.