What Do You Need to Close a Deceased Bank Account?

When an individual passes away, managing their financial affairs becomes a necessary responsibility. Closing a deceased person’s bank account involves navigating various legal and administrative steps to ensure proper handling of assets. This guide provides clarity on the requirements and actions involved in settling an estate.

Identifying the Necessary Authority

Successfully closing a deceased individual’s bank account requires establishing legal authority to act on behalf of the estate. The specific role and documentation needed depend on whether the deceased had a will and how the account was structured.

If the deceased had a valid will, an executor is named to manage the estate according to its provisions. This authority is formally granted by the probate court through “Letters Testamentary,” proving the executor’s legal right to administer assets and close accounts.

If no will exists, an administrator is appointed by the probate court to oversee estate distribution following intestacy laws. The court issues “Letters of Administration.” Both Letters Testamentary and Letters of Administration confirm an individual’s power to act on behalf of the estate.

For accounts held jointly, the surviving joint account holder retains full ownership and can close the account without probate. This is due to survivorship rights, which automatically transfer ownership.

Accounts designated as Payable on Death (POD) or Transfer on Death (TOD) allow named beneficiaries to claim funds directly. With a certified death certificate, the bank releases funds to the designated individual, bypassing probate.

Some jurisdictions offer a simplified probate process for smaller estates, using a small estate affidavit. This allows a designated individual to collect and distribute assets without full probate if the estate’s total value falls below a certain threshold, varying by jurisdiction. The executed affidavit grants authority to handle bank accounts.

Gathering Required Documentation

Before contacting the bank, assemble all necessary documentation to facilitate the account closure process.

A certified copy of the death certificate is required by all financial institutions as proof of passing. Obtain this official document from the funeral home or vital records office. Banks require a certified copy, not a photocopy, for authenticity.

Present valid government-issued photo identification, such as a driver’s license or passport. The bank uses this to verify your identity for closure.

Proof of authority includes legal documents like Letters Testamentary, Letters of Administration, or a small estate affidavit. For joint or POD/TOD accounts, the original account agreement or designation form may be requested to confirm survivorship or beneficiary designation.

Have the deceased’s bank account information accessible to help the bank locate the correct account. This includes the account number from statements or checks, or the deceased’s debit card.

Notifying the Bank and Initiating Closure

Once authority and documentation are ready, engage with the financial institution. Notifying the bank and initiating account closure follows a structured approach for compliance and proper fund handling.

Initial contact with the bank is often best in person at a local branch, allowing direct presentation of original documents. Some banks offer dedicated phone lines for estate services. Confirm their specific procedures before visiting.

During the visit, present the certified death certificate, personal identification, and proof of authority (e.g., Letters Testamentary, Letters of Administration, or a small estate affidavit). Bank personnel will review these documents to confirm your legal standing. This verification may involve internal checks taking several business days.

The bank will require you to complete specific internal forms for account closure. These forms document the request, confirm identity, and specify how the remaining balance should be disbursed.

Upon successful verification and completion of paperwork, obtain written confirmation of the account closure. This confirmation should detail the date of closure and how the balance was handled (e.g., disbursed by check, transferred to an estate account, or paid directly to a beneficiary).

Handling Account Balances and Other Financial Matters

After initiating account closure, understand how the remaining balance will be handled and address other financial obligations. Fund distribution and management of associated financial activities are important steps in settling the deceased’s affairs.

Fund distribution from a closed account depends on its nature and presented authority. If solely in the deceased’s name and part of the probate estate, the balance is issued as a check payable to the estate or transferred to an estate bank account. For joint or POD/TOD accounts, funds are disbursed directly to the surviving owner or named beneficiary.

Bank accounts are classified as probate or non-probate assets, impacting fund distribution. Individual accounts without beneficiaries fall under probate, subject to court oversight and distribution by will or intestacy laws. Joint and POD/TOD accounts are non-probate assets, allowing direct fund transfer outside of formal court process.

Stop automatic transactions linked to the deceased’s account to prevent unauthorized debits or credits. This includes direct deposits like Social Security or pension payments, which must be halted to avoid overpayments. Cancel recurring automatic payments for utilities, subscriptions, or loan payments to prevent charges.

Manage outstanding checks or pending automatic debits carefully. Banks honor checks presented within a certain timeframe, typically ten days after the date of death, if funds are sufficient. However, once notified of death, the bank may place a hold on the account, preventing further transactions.

If the account has a negative balance or is overdrawn at closure, the bank may seek to recover funds from the estate. Estate assets would cover the deficit, potentially impacting beneficiary amounts. Maintain detailed records of all communications, documents, and transactions for a clear audit trail.