The bank will not close the account on its own—you have to tell them
When someone dies, their bank account does not automatically close. The bank will freeze it once they learn of the death, but you or the estate representative must formally request closure. The process varies slightly by bank and by whether the account is joint, has a named beneficiary, or goes through probate, but the basic steps are the same: notify the bank, provide a death certificate, and settle any remaining balance.
Start by calling the bank's main customer service line or visiting a branch in person. Have the account number ready. Tell them the account holder has died and ask what documents they need to close the account. Most banks will ask for an official death certificate—not a photocopy of a photocopy, but a certified copy issued by the county vital records office or the funeral home.
The bank may also ask who you are and why you are requesting closure. If you are the surviving spouse, joint account holder, or named executor of the estate, say so. If you are a family member with no legal claim to the account, the bank will likely require court documentation (like letters testamentary from probate court) before they will release funds or close the account.
Key Takeaways
- Contact the bank directly by phone or in person to notify them of the death and request closure—do not wait for them to find out.
- You will need a certified copy of the death certificate, which you can obtain from the county vital records office or funeral home.
- Joint account holders and named beneficiaries can often close or access the account faster than those who must go through probate.
- The bank will freeze the account once notified of the death, so no one can withdraw funds until closure is complete.
- Any remaining balance will be paid out according to the account type: to the surviving joint holder, to a named beneficiary, or to the estate if neither exists.
What happens to the money in the account
Where the money goes depends on how the account was set up. If the account is joint with survivorship rights (the most common setup for spouses), the surviving account holder owns the money outright and can keep it, withdraw it, or close the account themselves. The bank will remove the deceased person's name and the account continues under the survivor's name alone.
If the account has a named beneficiary (sometimes called "payable on death" or POD), the bank will pay that person directly once they show a death certificate and proof of identity. This bypasses probate entirely. The beneficiary does not need court permission and the process is usually faster—often two to four weeks.
If the account is in the deceased person's name alone with no beneficiary, the money becomes part of the estate and must go through probate court. The court will appoint an executor or administrator, who then has the legal authority to close the account and distribute the funds according to the will or state law. This can take months.
Some banks have a small-estate exception: if the account balance is below a certain threshold (often $5,000 to $15,000, depending on the state), a family member may be able to close it without going to probate court. Ask the bank whether this applies.
Documents the bank will ask for
Every bank requires a certified death certificate. This is not the same as a photocopy or a document printed from an online vital records website. A certified copy has an official seal and is issued by the county vital records office, the state health department, or the funeral home. Order several copies (usually $15 to $30 each) because you will need them for the bank, the IRS, insurance companies, and other institutions.
If you are the surviving joint account holder or named beneficiary, bring a government-issued photo ID. If you are the executor or administrator, bring the death certificate plus a certified copy of the court order appointing you (called letters testamentary or letters of administration). Some banks will also ask for a copy of the will, though this is less common.
A few banks may ask for a tax ID number for the estate or proof that the estate has filed a final tax return. This is more likely if the account held a large balance or if there are multiple heirs. Ask the bank upfront what they need so you do not make multiple trips.
How long it takes to close the account
If the account is joint or has a named beneficiary, closure usually takes one to three weeks once you provide the death certificate. The bank processes the paperwork, removes the deceased person's name or pays out the beneficiary, and closes the account.
If the account must go through probate, closure can take several months. The executor first has to be appointed by the court (which can take four to eight weeks), then notify the bank, then wait for the bank to process the closure. Some banks will not release funds until the probate case is fully closed, which can add more time.
Joint accounts with survivorship are the fastest: the surviving account holder can often walk into a branch, show the death certificate and their ID, and have the account updated the same day or within a few days. Named beneficiary accounts are next. Probate accounts are slowest.
What to do if the account has a negative balance or outstanding checks
If the deceased person wrote checks that have not cleared, or if there are pending charges, the account may go negative. The bank will not close the account until the balance is zero or positive. If you are the executor, you may need to pay the shortfall from estate funds. If you are a joint account holder, you may be responsible for the debt depending on your state's laws.
Ask the bank to put a stop on any outstanding checks and to freeze the account so no new charges can post. This prevents the balance from getting worse while you sort out what is owed. Once you have settled any debts, the bank can close the account.
If there are automatic payments set up on the account (utilities, subscriptions, insurance), contact those companies directly and give them a new payment method or cancel the service. Do not rely on the account closure to stop the payments—some companies will pursue the estate for unpaid bills.
Notifying other institutions and stopping automatic payments
Before or after the bank closes the account, notify any companies that were drawing money from it. This includes utilities, insurance, subscriptions, loan payments, and payroll direct deposits. Call or write to each one and ask them to stop withdrawals and update their records with the death date.
If the deceased person was receiving Social Security, a pension, or other government payments, notify the Social Security Administration or the relevant agency. They will stop payments and may ask for repayment of any funds received after the death date. The bank account closure is separate from this process, but it helps to do both at the same time.
Check the account statements for the past few months to find all automatic payments. Some may be small and easy to miss. The bank can also print a list of recurring transactions if you ask.
If the account is held at a credit union or online bank
Credit unions follow the same basic process as traditional banks, but they may require you to visit a branch in person or send documents by mail. Call the credit union's main number and ask whether you can handle closure by phone or whether you must come in. Some credit unions are stricter about requiring original documents rather than copies.
Online banks (those with no physical branches) typically handle closure entirely by mail or through a secure online portal. You will upload the death certificate and other documents, and the bank will process closure within one to three weeks. Keep copies of everything you send and note the date and confirmation number.
If the online bank is out of business or has been acquired by another bank, contact the new institution or check the FDIC website for information on how to recover funds. The FDIC insures deposits up to $250,000 per account type, so your money is protected even if the bank fails.
Frequently Asked Questions
Can I withdraw money from the account before it is officially closed?
If you are a joint account holder or named beneficiary, yes—you can withdraw funds or transfer them to your own account. If you are the executor but not a joint holder, you will need court authorization. If you are a family member with no legal claim, the bank will not let you withdraw anything until probate is complete and the court authorizes it.
What if I cannot find the death certificate?
Contact the county vital records office in the county where the person died, or call the funeral home—they often have copies on file. You can also order one online through the state health department website. It usually takes one to two weeks by mail. Some banks will accept a temporary or preliminary death certificate while you wait for the official one.
Do I have to close the account or can I just leave it frozen?
You should close it to avoid confusion and to ensure the funds are distributed correctly. A frozen account can sit indefinitely, and the bank may charge maintenance fees. If there is a named beneficiary, closing it ensures they receive the money. If it goes to probate, closing it is part of settling the estate.
What if there are multiple heirs and they disagree about what to do with the money?
If the account goes through probate, the court decides how to distribute the money according to the will or state law. The executor must follow that order. If the account has a named beneficiary, that person receives the money regardless of what other heirs want. If you are a joint account holder, the money is yours. Disagreements between heirs are a legal matter, not a banking one.
Will I have to pay taxes on the money in the account?
The money itself is not taxable income to you or the estate. However, if the account earned interest after the person died, that interest may be taxable to the estate. The executor files a final tax return for the deceased person and a separate return for the estate if needed. Ask a tax professional or the IRS for guidance on your specific situation.