Ater the funeral of a loved one, the house can feel empty, and responsibilities continue to fall. You’ve got bills to pay, family members to inform, and, of course, the bank account that can’t just be ignored. When dealing with an estate, it can be easy to get overwhelmed with paperwork when you are already in the midst of a loss.
Fortunately, you can make the process easier when you know what the bank requires and what to do first. Begin with the correct documents, establish authority, review the account, and deal with pending transactions.
The following five steps outline the path from paperwork to closure.
1. Start by gathering the documents the bank needs
Collect any documents that verify the account holder is deceased and that you have the right to act on the account before you contact the bank. Each bank has its own requirements; check with the bank for their checklist.
You may need:
- A certified death certificate
- Government-issued identification
- The account number of the person who died or a recent statement from that account.
- A will or trust document (if applicable)
- Probate or court documents showing your authority
If you are still working things out, the information on how to close a bank account after death might be helpful. Store multiple certified copies, as other entities may require them when administering an estate.
2. Confirm who can legally close the account
With all of your paperwork in hand, the next step is to make sure there’s a legal person to be responsible for the account. Being a spouse, a child or another relative does not automatically mean that you have control over an individual account.
You must be an executor, administrator, trustee, beneficiary, or surviving joint owner to get that access. The process, however, varies depending on the account’s title and whether a beneficiary has been named.
That ownership also applies to the balance that is left over. In the case of a joint account with rights of survivorship, the funds typically pass to the surviving owner, and with other account types, the funds may have to pass through the estate.
Before transferring funds or asking for the account to be closed, verify the ownership of the account and what paperwork the bank needs. This can help avoid incorrect paperwork, delays, and complications.
3. Notify the bank and review the account
Once you’ve established your right, call the bank and notify them that the account holder passed away. Ask for its deceased customer or estate department. Send the documents requested and inquire about the next steps.
Then carefully review the account.
Look for:
- Direct deposits
- Automatic payments
- Outstanding checks
- Recurring subscriptions
- Recent deposits or withdrawals
This is important as transactions may still be moving through the account. After someone passes away, it is important to contact banks and other financial institutions and to close or transfer accounts as necessary, according to USAGov.
Thus, don’t consider the current balance as money that can be spent automatically. Inquire with the bank about which transactions must be cleared, stopped, or returned.