Closing a deceased person's bank account is one of the most important financial tasks executors face. Here's exactly how to do it.
What You'll Need
Before contacting the bank, gather these documents:
- Certified Death Certificate - Banks require an official copy, not a photocopy
- Letters Testamentary - Proof you're authorized to act on behalf of the estate (from probate court)
- Your Government ID - Driver's license or passport
- Account Information - Account numbers, if available
Step-by-Step Process
Step 1: Don't Pay Bills From the Account Yet
Before touching the account, understand that estate debts have a specific payment order. Paying bills out of order could make you personally liable.
Step 2: Contact the Bank
Call or visit the bank with your documents. Ask for their estate or deceased account department. Most major banks have dedicated teams for this.
Step 3: Request Account Information
Ask for:
- Current balance
- Recent transactions (look for auto-pays that need canceling)
- Any linked accounts
- Safe deposit boxes
Step 4: Choose How to Handle the Funds
Options typically include:
- Transfer to estate account - Usually best for larger amounts
- Check payable to "Estate of [Name]" - Good for smaller amounts
- Direct transfer to beneficiary - Only if account has POD (Payable on Death) designation
Step 5: Cancel Automatic Payments
Review recent statements for recurring charges:
- Utilities
- Subscriptions
- Insurance premiums
- Loan payments
Step 6: Get Written Confirmation
Request written confirmation that the account is closed and all funds have been disbursed.
Special Situations
Joint Accounts
If the account was jointly held, the surviving owner typically has immediate access. The deceased person's name should still be removed.
POD (Payable on Death) Accounts
These bypass probate entirely. The named beneficiary can claim funds directly with a death certificate and ID.
Frozen Accounts
Banks may temporarily freeze accounts when notified of a death. This is normal and protects against fraud.
Timeline
- Account closure: 1-4 weeks typically
- Funds disbursement: 2-6 weeks
- Full process: Usually 30-60 days
Common Mistakes to Avoid
- Withdrawing cash before probate - This can create legal problems
- Closing accounts before paying estate debts - Follow proper order
- Forgetting about linked accounts - Check for savings, CDs, and money market accounts
- Not canceling auto-pays - These can overdraft the account
Sample Letter to Bank
Settled provides a pre-written letter template for bank account closure. Here's what it covers:
- Your authority as executor
- Request to close the account
- Instructions for fund disbursement
- List of enclosed documents
- Your contact information
Need Help?
Settled tracks all your estate settlement tasks and provides letter templates for every notification you need to send. Start your free 30-day trial.