FAQ: Closing an estate bank account and getting the required closing statement under South Dakota law
Short answer: The personal representative (executor or administrator) closes the estate bank account after collecting assets, paying valid debts and expenses, and preparing a final accounting (closing statement). The representative files or presents that final accounting and any required petition to the court (or follows the county probate procedures for small or unsupervised estates), obtains a court order or discharge (if required), and provides the bank with the authority it requires (letters, death certificate, and the court order or signed closing statement) before the bank will release or close the account. This page explains the typical steps under South Dakota (SD) probate procedures, what documents banks usually require, and how to obtain the formal closing statement.
Disclaimer
This is general information, not legal advice. I am not a lawyer. For advice about your specific situation, consult a licensed South Dakota attorney or the probate court in the county where the decedent lived.
Detailed answer — step-by-step guide (South Dakota)
1. Confirm who has authority to act for the estate
Only the person named in the will as executor or the person appointed by the court as administrator (the personal representative) can legally handle estate bank accounts. If you have not yet been appointed, you generally must open probate and obtain Letters Testamentary or Letters of Administration from the county probate court before banks will allow you to act. For information on South Dakota probate law, refer to the Uniform Probate Code provisions in SDCL Title 29A: South Dakota Codified Laws, Title 29A (Probate).
2. Gather required documents the bank will want
Before a bank will allow you to close an estate account or disburse funds, it typically requires:
- A certified or original death certificate for the decedent.
- Letters Testamentary or Letters of Administration (court-issued proof of authority).
- Photo ID for the representative.
- Bank account information (account number, last statements).
- Any required court order or final decree authorizing distribution (if the estate is supervised or the bank requests it).
3. Pay valid debts, taxes, and administration expenses first
South Dakota procedure requires the personal representative to identify and pay valid claims and expenses (administration costs, funeral expenses, taxes). You must keep receipts and records. The final closing statement will show all receipts and disbursements. See probate accounting requirements generally in SDCL Title 29A: SDCL Title 29A.
4. Prepare the final accounting / closing statement
The closing statement (final account) typically lists:
- Beginning balance and all estate receipts (assets collected).
- All payments and disbursements (debts paid, taxes, expenses of administration, attorney fees if paid).
- Remaining balance and proposed distribution to beneficiaries or heirs.
- Attachments such as receipts, paid invoices, and creditor proof-of-payment.
Format requirements can vary. If the estate is supervised by the court, the personal representative will file the final account with the probate court and ask for approval and discharge. For unsupervised or small estates, the representative often prepares a written closing statement to present to the bank and to provide to heirs.
5. File or present the closing statement to the court if required
Whether you must file the final account with the court depends on the type of administration in South Dakota (supervised vs. unsupervised) and local practice. If the court appointed you under supervised administration, you must file and obtain the court’s allowance or approval before final distribution. If the estate was handled informally or qualifies for small estate procedures, you may not need a court hearing—still prepare the final account and keep proof of distributions.
6. Provide the bank the documents it requires to close the account
Once final distributions are authorized (either by surviving beneficiaries’ agreement or a court order), present the bank with:
- Letters Testamentary/Administration.
- Certified death certificate.
- The final accounting or court order approving distribution.
- Identification for the representative and signature cards as requested by the bank.
The bank will generally close the estate account and either issue a single check payable to the estate or distribute funds consistent with the court order or the final statement. Banks may also have internal policies that require a certified copy of the court order or an affidavit of distribution.
7. Obtain formal proof of closing
Ask the bank for a written closing statement or final bank statement showing a zero balance and disposition of funds. If the court approved the final account, obtain a certified copy of the court’s order of distribution or discharge. Keep these documents with the estate files.
Common variations and practical points
- Small estates: South Dakota has simplified procedures for small estates in some cases; the representative may be able to use an affidavit or summary administration to collect assets without full probate. Check the probate clerk or consult an attorney about thresholds and procedures under SD law: SDCL Title 29A.
- Joint accounts / POD accounts: Accounts with rights of survivorship or payable-on-death designations usually pass directly to the co-owner or designated payee and may not become estate property. Confirm ownership status with the bank before treating such accounts as estate funds.
- Creditor claims: Don’t distribute estate funds until you have followed the required notice and claim procedures; distributing too early can expose you to personal liability if valid claims later appear.
What the bank may require before releasing funds
- Certified death certificate.
- Original or certified Letters Testamentary/Letters of Administration.
- Court order approving final accounting (for supervised estates).
- Notarized affidavit of distribution (for unsupervised estates if the bank requests one).
- Indemnity or release forms if beneficiaries accept distributions.
Helpful Hints
- Start by calling the probate clerk in the county where the decedent lived. They can advise on local procedures and whether your estate is supervised or unsupervised.
- Ask the bank in advance what exact documents and certified copies it requires. Bank policies vary; some accept certified letters from the court, others require a court order.
- Keep detailed records and copies of every check, invoice, and receipt. The final accounting must be accurate and verifiable.
- If beneficiaries dispute the final accounting, the probate court may require a hearing. Consider mediation if disagreements arise before court involvement.
- If you expect taxes (estate or income taxes), get professional tax help before final distribution; paying taxes incorrectly can expose the representative personally.
- For a supervised estate, do not distribute funds until the court signs an order approving the final account and discharging the personal representative.
- If you are unsure whether an account is estate property, ask the bank to freeze the account while you seek guidance—this prevents improper distributions.
- When in doubt, consult a South Dakota probate attorney — they can prepare court filings, the final account, and request a discharge to protect you from personal liability.
Where to find official South Dakota resources
- South Dakota Codified Laws, Title 29A (probate/Uniform Probate Code): https://sdlegislature.gov/Statutes/StatutesByTitle.aspx?title=29A
- South Dakota Unified Judicial System (probate information and county court contacts): https://ujs.sd.gov/
If you want, tell me whether the estate is supervised or unsupervised, whether there was a will, and what type of bank account you are trying to close (estate account, joint account, POD), and I can walk you through a more tailored checklist of documents and next steps under South Dakota procedures.