How to Close a Bank Account After Someone Dies

Walking into a bank after someone dies and not knowing what you need is one of the most frustrating experiences families describe. You are grieving, you are overwhelmed, and the person behind the counter is asking for documents you have never heard of.

Here is what you actually need to know before you make that trip.

What the Bank Needs From You

Every bank has slightly different requirements but most will ask for the same core documents. You will need a certified copy of the death certificate, not a photocopy. You will need proof of your authority to act on behalf of the estate which is usually a document called Letters Testamentary issued by the probate court. You will also need your own government issued photo ID.

If the account had a joint owner or a named beneficiary the process is simpler. Joint owners typically just need to present the death certificate and their own ID. Named beneficiaries on accounts set up as payable on death can claim the funds directly without going through probate at all.

What Happens to the Money

If the account goes through the estate the funds become part of the estate assets. They need to be accounted for, used to settle valid debts, and then distributed to beneficiaries according to the will or state law if there is no will.

Do not withdraw or distribute funds from the account before debts are settled. This is one of the most common executor mistakes and it can create personal liability.

What About Direct Deposits Coming In

If the deceased was receiving Social Security, pension payments, or any other automatic deposits you need to notify those agencies as quickly as possible to stop future payments. Any payments received after the date of death typically need to be returned.

One Step at a Time

Dealing with banks, government agencies, and financial institutions while managing grief is a lot. The key is knowing what you need before you show up so you are not making multiple trips or getting turned away because a document is missing.

The Document Organizer inside the Complete Estate Administration Suite at mynextstepsupport.com helps you track exactly what you have and what you still need before you start making those calls and visits.

Visit mynextstepsupport.com to learn more.