To close a bank account when someone dies, start by identifying how the account was titled, because ownership type decides who has legal authority to act and whether probate is involved at all. A sole account in the decedent’s name requires court-issued letters and a certified death certificate. A joint account with survivorship passes to the surviving owner on presentation of the death certificate. A pay-on-death account goes directly to the named beneficiary. In every case, notifying the bank quickly protects the balance, stops recurring charges, and prevents problems with federal benefit payments that may have to be returned.
Start With How the Account Is Titled
The title on the account controls everything else.
Sole accounts held only in the decedent’s name are probate assets. The court-appointed executor or administrator handles the closure using letters testamentary (if there was a will) or letters of administration (if there wasn’t), plus a certified death certificate. No one else has authority to touch the funds until a court grants it.
Joint accounts with right of survivorship work differently. When one owner dies, the surviving owner automatically gains full control. The survivor brings a certified death certificate to the bank, the decedent’s name is removed, and the account continues under the survivor’s sole ownership. No court involvement is needed.
Pay-on-death accounts (sometimes called Totten trusts) name specific beneficiaries who have no claim while the owner is alive but gain immediate rights once the owner dies. The beneficiary shows a death certificate and valid ID to claim the balance. These accounts skip probate because the bank’s contract with the depositor controls the transfer.
If the decedent lived in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin), accounts opened during the marriage may be treated as community property regardless of whose name is on the account. A surviving spouse with a right-of-survivorship designation automatically inherits. Without that designation, the decedent’s half of the community property may still need to pass through probate, though several of these states offer simplified procedures for surviving spouses.
Documents the Bank Will Ask For
Every bank will want a certified death certificate. These come from the state or local vital records office, and fees typically fall between $5 and $34 per copy depending on the state. Order several certified copies. You’ll need them for the bank, the probate court, insurance companies, and any other financial institution the decedent used. Photocopies are not accepted.
For a sole account going through probate, you’ll also need letters testamentary or letters of administration. The probate court issues these after reviewing the will and confirming the executor, or after appointing an administrator when there is no will. They are the document that proves you can legally act on behalf of the estate.
When the estate is small, many states let you skip full probate and use a small estate affidavit instead. Qualifying thresholds range widely by state, from as low as $15,000 to as high as $200,000. Some banks have their own version of the affidavit and will insist you use their form. Whichever form applies, you sign under penalty of perjury that you have the legal right to the funds and that no one else has a superior claim. In most states, every heir’s signature has to be notarized.
Also bring the decedent’s full legal name, Social Security number, and account numbers, along with your own government-issued photo ID. A named beneficiary on a pay-on-death account may be asked for additional documentation of the relationship.
How to Notify the Bank
There is no single federal deadline for notifying the bank, but delay causes real problems. Automated bills keep drafting, monthly fees accrue, and federal benefit payments that arrive after the date of death will have to be returned.
Most large banks have an estate services department that handles closures after a death. You can usually call a centralized number, visit a branch in person, or mail documentation to a specialized processing address. An in-person visit is often fastest because the banker can scan and forward everything to the legal department on the spot.
Once the bank has your documents, expect a review period while compliance verifies the court-issued letters and confirms your identity. The bank freezes the account during this time, rejecting new debits and credits to preserve the closing balance, and cancels standing instructions like automatic transfers, autopay, and recurring transactions.
Before that freeze goes on, look through recent statements and note anything recurring. Subscriptions, insurance premiums, utility bills, and loan payments tied to the account will not stop on their own just because the account holder died. Contact those billers directly to cancel or redirect the payments rather than letting them bounce repeatedly against a frozen account.
Federal Benefit Payments Will Be Clawed Back
This is where families often get caught off guard. If the decedent received Social Security, VA benefits, or other federal payments by direct deposit, any payment for the month after death (and sometimes the month of death itself) has to be returned. The U.S. Treasury initiates a reclamation that pulls the money directly back from the bank.
Under federal regulations, once the bank learns of the death, it must return any federal benefit payments received after that date. The bank is liable to the federal government for the full amount of post-death payments. The issuing agency has 120 days from learning of the death to start the reclamation, and the bank generally has 30 days after receiving the notice to return the funds or respond.
The practical effect: if a Social Security payment lands in the account after the date of death, the bank will hold those funds and return them to the government before releasing anything to you. Do not spend money sitting in the decedent’s account until the reclamation review is complete. The bank can and will claw it back.
When You Need an Estate Account and EIN
If the account was a sole account going through probate, the bank will issue the final balance as a check payable to “the estate of [decedent’s name].” That check cannot go into your personal account. You need a separate account in the estate’s name, and to open one, you need an Employer Identification Number from the IRS.
The EIN is essentially a Social Security number for the estate. You apply for it on IRS Form SS-4. The fastest route is the IRS online application, which is available most hours during the week and issues the number immediately. You’ll need the decedent’s Social Security number and your own identifying information as the responsible party. The IRS limits you to one EIN application per responsible party per day, so get this done before your bank visit.
With the EIN, bring your letters testamentary or letters of administration, the death certificate, and your ID to a bank of your choice. The estate account is where the decedent’s assets get consolidated before you pay debts, taxes, and distributions to beneficiaries. Any estate with gross income of $600 or more during administration has to file Form 1041, the estate income tax return, using this EIN.
Watch FDIC Coverage After Six Months
FDIC insurance rules shift after an account holder dies, and the change can leave money uninsured if the balance is large. The FDIC maintains the deceased owner’s coverage as if they were still alive for six months after death. During that grace period, insurance limits do not change.
After six months, coverage restructures based on actual ownership. If a surviving spouse inherits multiple accounts at the same bank through survivorship or beneficiary designations, those balances stack up under the spouse’s ownership. A couple that had $500,000 spread across individually owned accounts at one bank, each insured up to $250,000, could end up with the surviving spouse holding $500,000 in a single ownership category, leaving $250,000 uninsured. If large balances sit at one institution, use the six-month window to restructure or move funds to stay within FDIC limits.
Interest Reporting and Bank Setoff
Once compliance review is done and any federal reclamation is satisfied, the bank closes the account and releases the remaining balance. For probate accounts, the check goes to the estate. For pay-on-death accounts, the check goes to the named beneficiary. Joint account funds remain in the account under the surviving owner.
The bank has to report interest earned on the account to the IRS on Form 1099-INT. What many executors don’t realize is that the bank should issue two separate 1099s: one for interest earned from January 1 through the date of death (reported on the decedent’s final personal return), and another for interest earned from the date of death through account closure (reported on the estate’s Form 1041 if the estate has $600 or more in gross income). If the bank sends a single 1099 lumping everything together, request a corrected form that splits the amounts.
One last thing worth checking. Banks generally have a common-law right of setoff, meaning they can apply the decedent’s account balance against any matured debt the decedent owed to the same bank. An overdue credit card or loan at the same institution may be deducted from the account before funds are released to the estate. The setoff only reaches debts owed to that specific bank, not to outside creditors, and it cannot touch funds that weren’t legally the decedent’s, such as a surviving co-owner’s share of a joint account.