Detailed answer: Step-by-step process under North Dakota practice

When someone dies, the estate’s bank accounts often remain open until the personal representative has authority to act, pays debts and expenses, distributes assets, and closes the estate. Below are clear, practical steps commonly followed in North Dakota. Exact steps can vary depending on whether the estate is independently administered (informal) or supervised by the court (formal).

1. Confirm you have authority to act.

   Before the bank will let you access or close estate accounts you typically must present one or more of the following: certified death certificate, letters testamentary or letters of administration issued by the court, or a court order directing distribution. If the estate is small and the bank permits, the bank may handle account closure with other documentation, but most banks require court-issued letters when a probate is open.

2. Inventory assets, pay debts and taxes, and keep careful records.

   Collect all estate bank statements, investment account statements, insurance policies, and records of other assets. Use those records to:

   • Pay funeral expenses and valid creditor claims;
   • File the decedent’s final individual income tax returns and any estate tax returns if required;
   • Pay administrative expenses (attorney, accounting, appraisal fees) and approved creditor claims.

   Keep copies of checks, invoices, and receipts. These records are required for the final accounting and for the closing statement the court or beneficiaries will expect.

3. Prepare a final accounting or closing statement.

   The closing statement (often called the “final accounting” or “final report”) summarizes the estate’s cash activity from the date of death: beginning cash on hand, all income, distributions, payments to creditors, expenses, and the remaining balance paid to beneficiaries or distributed according to the will or law.

   Typical components:

   • Opening balance(s) and dates;
   • Detailed list of receipts (e.g., collected insurance, sale of assets, interest, dividends);
   • List of all payments and disbursements (creditors, taxes, fees, distributions to beneficiaries);
   • Ending balance and proposed distributions;
   • Supporting documentation (bank statements, paid invoices, proofs of claim, tax returns).
4. Get the accounting approved or filed with the court when required.

   If the estate is under supervised administration or a creditor or beneficiary objects, you will need to file the final accounting with the probate court and obtain a court order approving it and discharging the personal representative. If the estate is being handled informally and beneficiaries have agreed, you may be able to distribute assets and close accounts after circulating the final accounting and obtaining releases or written consents from beneficiaries.

   North Dakota courts provide probate procedures and forms on the North Dakota Courts website: https://www.ndcourts.gov/legal-resources/probate.

5. Provide the bank the required documentation to close the account.

   Once you have authority and have distributed or prepared to distribute funds, present the bank with:

   • Certified death certificate;
   • Letters testamentary/letters of administration or court order approving the accounting and authorizing distribution;
   • Final accounting or closing statement and any beneficiary releases if applicable;
   • Identification for the personal representative.

   The bank will have its own forms and procedures—some banks require the account to be paid out by check made payable to beneficiaries, others will accept a court order requesting the bank to transfer or close the account. Ask the bank in advance what they require.

6. File any required final pleadings and seek discharge if appropriate.

   After distribution and payment of fees and claims, file the final accounting and petition for discharge with the probate court (if not already done), and obtain an order discharging you from further liability. That court order is often the last formal document in the file and is useful to close remaining administrative matters, release bonds, and show future creditors you have been discharged.

7. Keep records for future inquiries.

   Keep a copy of the closing statement, court orders, canceled checks, tax filings, and all supporting documents for several years—creditors or tax authorities may audit the estate.

For statutory authority and probate rules, see the North Dakota Century Code and the North Dakota Courts’ probate resources: North Dakota Century Code (probate, Title 30.1): https://www.legis.nd.gov/cencode. The ND Courts’ probate pages and local court clerk can tell you about filing requirements and local forms: https://www.ndcourts.gov/legal-resources/probate.

Hypothetical example: Jane Doe is personal representative after her mother’s death. She obtains letters testamentary from the county court, inventories the estate bank account ($25,000), pays $5,000 in funeral and valid creditor claims, sets aside $2,000 for final taxes, prepares a final accounting showing receipts and expenses, obtains beneficiaries’ written approval, and presents the court-approved closing statement and letters to the bank. The bank releases the remaining $18,000 by check payable to the beneficiaries, and Jane files the court’s final discharge.

Helpful Hints

• Talk to the bank early. Ask what documents they require to release or close an estate account—requirements vary by institution.
• Keep a clear, dated paper trail. Banks and courts rely on documentation—organized records speed up closing.
• Distinguish probate assets from nonprobate assets. Payable-on-death accounts, jointly owned accounts, and some retirement accounts may bypass probate and may not be part of the estate account you are closing.
• Obtain beneficiary releases when possible. If beneficiaries agree in writing to the accounting and distributions, you may avoid formal court expense and delay.
• Watch deadlines for creditor claims and taxes. Paying debts and filing tax returns is necessary before closing the estate.
• If the estate is small, ask the court clerk about simplified or small-estate procedures that may allow faster distribution without a full probate accounting.
• Consider getting professional help for complicated estates—especially where taxes, business interests, or contested claims exist.