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Detailed answer — step-by-step process (Virginia)

1. Confirm your authority to act.

   The bank will usually require proof that you are the estate’s personal representative. That proof is typically one of the following issued by the circuit court: Letters Testamentary (if there is a will) or Letters of Administration (if no valid will). If no court administration occurred but the estate qualifies for an informal or small-estate procedure, different documents may apply.

   For general rules on estate administration in Virginia, see the Virginia Code, Title 64.2: https://law.lis.virginia.gov/vacode/title64.2/.

2. Gather required documents the bank will ask for.

   Common items banks request to close an estate account include:

   • Certified copy of the death certificate.
   • Certified copy of Letters Testamentary or Letters of Administration (or equivalent court order).
   • Government photo ID for the personal representative.
   • A copy of the estate’s EIN (if the estate used one).
   • The account ledger or statement showing current balance; banks may require the personal representative to sign a release or closing signature card.

   If the estate was administered informally or the bank account was jointly titled, the required paperwork may differ. Always call the bank first and ask which documents they require for closing an estate account.

3. Pay valid debts, taxes, and funeral expenses before closing the account.

   A personal representative must use estate funds to pay taxes, funeral costs, and creditor claims before making distributions to beneficiaries. Keep receipts and proof of payment. If you close the account before those obligations are satisfied, you could be held personally liable for unpaid liabilities.

4. Prepare a final closing account (final accounting).

   The closing account (sometimes called the final accounting) shows all estate receipts, disbursements, fees, taxes, creditor payments, and proposed distributions. Typical sections include:

   • Opening balance (cash on hand when you became personal representative).
   • All receipts (pension checks, life insurance proceeds paid to estate, sale of assets, interest, etc.).
   • All disbursements (funeral, creditor payments, administrative expenses, attorney fees, taxes).
   • Net distributable estate and proposed distribution schedule by beneficiary.

   A clear final accounting helps beneficiaries, the court, and the bank understand why you closed the account and how remaining funds were used or distributed.

5. Provide the closing account to beneficiaries and get releases if appropriate.

   Before or when you close the account, give beneficiaries a copy of the accounting and the proposed distribution. If beneficiaries agree, they can sign written releases (waivers) acknowledging they accept the accounting and the distributions. A signed release reduces the chance of later disputes.

6. File the final account with the circuit court if required.

   If the estate is being administered formally (court-supervised), you must file a petition for settlement of the account and get a court order approving the final accounting and distributions. In that case, present the court order and certified letters to the bank when closing the account.

   Virginia circuit court probate information: https://www.vacourts.gov/courts/circuit/probate.html

7. Close the estate bank account at the bank.

   Visit the bank with the documents above. The bank will typically require:

   • Certified copy of Letters Testamentary / Letters of Administration or court order.
   • Certified death certificate.
   • Your ID and signature as personal representative.
   • Instructions for final disposition of funds (paying a creditor, writing checks to beneficiaries, or distributing by check or wire).

   Ask the bank to provide a written closing statement or final account ledger showing the account balance at closing and the disposition of funds. Keep that bank closing receipt with the estate records.

8. Keep complete records for tax and audit purposes.

   Retain copies of the final accounting, bank closing statement, paid invoices, cancelled checks, beneficiary releases, and any court orders. The IRS and Virginia tax authorities may request records for the estate’s final income tax return or estate tax matters.

When court approval is required

If the estate administration is formal or a beneficiary objects to your accounting, you must ask the circuit court to approve the final account before final distributions. If you administered the estate informally and beneficiaries agree in writing, you may not need a court filing, but a court order is the clearest protection. The Virginia Code contains the statutory framework for probate and administration at Title 64.2.

What a simple sample closing account (final accounting) includes

Estate of [Decedent]
Personal Representative: [Name]
Period covered: [Date] to [Date]

1. Opening cash on hand: $X,XXX.XX
2. Receipts (interest, payments, asset sale): $X,XXX.XX
3. Total receipts: $X,XXX.XX
4. Disbursements:
   - Funeral expenses: $XXX.XX
   - Creditor payments: $XXX.XX
   - Administrative costs (bank fees, postage): $XX.XX
   - Taxes / tax payments: $XXX.XX
   - Attorney fees (if any): $XXX.XX
5. Total disbursements: $X,XXX.XX
6. Net distributable estate: $X,XXX.XX
7. Proposed distributions:
   - Beneficiary A: $X,XXX.XX
   - Beneficiary B: $XXX.XX

Attachments: bank statements, invoices, receipts, tax forms.
    

Helpful hints

• Call the bank before you go. Ask exactly which documents they require to close an estate account and whether they accept photocopies or need certified copies.
• If multiple banks or accounts exist, prepare a separate accounting for each or a consolidated accounting showing transfers between accounts.
• Get beneficiary signatures or written waivers when possible to reduce the risk of later challenges.
• Do not distribute funds until you are reasonably sure all creditor claims and taxes are paid or provided for. If uncertain, get court approval or a written beneficiary release.
• Keep the bank’s written closing receipt and the final account in the estate file. Those documents protect you if questions arise later.
• When in doubt about complex claims, taxes, or large estates, consult a Virginia probate attorney for guidance. Local rules and practice can vary by circuit court.