How can one close an estate bank account and obtain the required closing statement? – MD

Detailed Answer

Short answer: In Maryland, closing an estate bank account generally requires (1) authority to act as the personal representative (letters testamentary or letters of administration issued by the Register of Wills or other proof of authority), (2) completing the estate’s financial duties (collecting assets, paying valid debts and expenses, filing required tax returns), (3) preparing and keeping a final accounting or closing statement, and (4) getting the bank’s written confirmation that the estate account is closed and the balance is zero. For court‑supervised estates you will also file a formal final account with the Register of Wills and obtain discharge before complete distribution.

Who can lawfully close an estate account?

Only the estate’s fiduciary — usually the personal representative (executor or administrator) — can legally close an estate bank account. The bank will ask for proof of the fiduciary’s authority. Typical proof includes Letters Testamentary or Letters of Administration issued by the Register of Wills, or a court order. If the estate is informal/small and no letters were issued, banks may accept a certified copy of the will plus a clerk’s certificate or other written proof; policies vary by bank and county.

Step-by-step: How to close the estate account correctly

Confirm your authority. Present the bank with letters from the Register of Wills or a court order that names you as personal representative. If you have questions, contact the Register of Wills in the decedent’s county or the bank’s fiduciary/estate department.
Collect and reconcile all estate funds. Gather all estate deposits, outstanding checks, income (pensions, payables), and any pending deposits. Reconcile the estate ledger so you know the precise bank balance before distribution.
Pay valid debts, expenses, and taxes. Before closing, pay creditor claims and necessary administrative expenses (funeral, probate fees, attorney and accounting fees) and file the decedent’s final income tax return and any required estate income returns (if applicable). Maryland law and local practice dictate notice to creditors and timeframes; consult the Register of Wills page for county procedures (see resources below).
Prepare final accounting or closing report. Create a final accounting that shows each receipt, disbursement, and the remaining balance that will be distributed. For supervised estates you will file this accounting with the Register of Wills and seek court approval; for unsupervised estates you should still prepare and keep the accounting and provide it to beneficiaries on request.
Get beneficiary concurrence (if required or practical). If beneficiaries agree on final distributions, obtain written releases or waivers when appropriate. This reduces the risk of later disputes and may be required prior to distribution in some cases.
Distribute remaining funds per the will or law. Make distributions after you are satisfied there are no outstanding creditor claims and after any required delay periods. Use checks or transfers that leave a clear audit trail and keep copies.
Ask the bank for a closing statement and written confirmation. When the account balance reaches zero, request the bank produce: (a) a final account statement showing the zero balance, (b) a written confirmation that the estate account has been closed, and (c) any bank form they use to release the fiduciary’s liability. Keep signed originals in the estate file.
File the final account with the Register of Wills or seek discharge (when required). If the estate is supervised, file the final accounting and petition for discharge with the Register of Wills or court and obtain an official order or discharge document before considering your duties complete. For unsupervised estates you may be able to close the bank account after making distributions but retain records and provide beneficiaries the accounting if they request it.
Retain records. Keep the estate file (ledgers, canceled checks, invoices, receipts, closing statement, bank confirmation) for several years. Records protect you against later creditor or beneficiary claims.

What documents will the bank require?

Letters Testamentary or Letters of Administration issued by the Register of Wills (or equivalent court order).
Valid government ID for the fiduciary.
Corporate or fiduciary resolution if the fiduciary is a corporate entity or bank trust department.
A recent account statement and the requested distribution instructions.
Sometimes an EIN for the estate (if the estate used one for tax filing).

Closing statement vs. final accounting — what’s the difference?

The bank’s closing statement is a financial document from the bank showing the account activity and final zero balance. The personal representative’s final accounting is a broader fiduciary document that lists all estate assets, receipts, expenses, distributions, and the ending cash balance. For supervised estates the court-approved final accounting is the official record used to discharge the fiduciary; the bank’s statement is supporting evidence.

County and court variations in Maryland

Procedures vary among Maryland counties. Some counties routinely supervise accounts; others allow unsupervised administration when the estate is straightforward. Always check the Register of Wills in the county where probate was opened for local rules, required forms, and whether you must file a final account for court approval.

When to get legal or professional help

Consider consulting a Maryland probate attorney or an experienced estate settlement professional if the estate has contested creditor claims, complex assets (business interests, real estate, retirement accounts), disputes among beneficiaries, or tax issues. An attorney can help prepare the formal accounting, file required petitions, and obtain a court discharge when needed.

Key Maryland resources

Maryland Courts — Probate & Estate Administration overview and resources: https://www.mdcourts.gov/probate
Maryland Courts — Duties of Personal Representatives (guidance and county Register of Wills links): https://www.mdcourts.gov/probate/personalrepresentatives
Maryland Courts — Probate forms and instructions (final accounting forms and petitions vary by county): https://www.mdcourts.gov/probate/forms
Maryland General Assembly (state statutes and where to look up Maryland Code, Estates & Trusts): https://mgaleg.maryland.gov/mgawebsite/

Helpful Hints

Always request the bank’s specific checklist for closing an estate account. Banks often have tidy checklists for fiduciaries.
Keep an estate ledger from day one. Clear, dated entries make preparing the final accounting far easier.
Do not distribute funds until you are confident creditor claims are resolved or the statutory notice period has passed.
Get written beneficiary waivers or receipts for distributions when possible to reduce future disputes.
Obtain and keep the bank’s final statement and written confirmation of account closure; store these with your estate records indefinitely.
If the estate is small and informal, check whether a small‑estate collection procedure applies in Maryland to avoid formal administration.
When in doubt, contact the Register of Wills in the county where the estate is being probated for county‑specific rules and required filings.

Disclaimer: This article explains general Maryland probate practices and is for informational purposes only. It is not legal advice. Laws and procedures vary by county and by case facts. For guidance tailored to your situation, consult a licensed Maryland attorney or the Register of Wills.

FastCounsel