Detailed Answer

Short answer: As the personal representative (executor or administrator) you close an estate bank account by (1) collecting the authority the bank will require (letters testamentary or a court order and a certified death certificate), (2) paying valid debts and taxes from estate funds, (3) preparing a final accounting/closing statement that shows all receipts and disbursements, and (4) using the court-approved closing statement or a signed distribution to instruct the bank to disburse remaining funds to the beneficiaries. In Colorado, banks will commonly require court documents or signed releases before they will fully close an estate account.

Who typically does this work?

The personal representative of the estate (named in the will as executor or appointed by the probate court as administrator) has the legal authority and duty to manage estate assets, pay debts and taxes, prepare the closing accounting, and distribute remaining funds to heirs or beneficiaries.

Step-by-step process to close an estate bank account in Colorado

Confirm your authority at the bank
The bank will usually ask for one or more of the following: a certified copy of the death certificate; letters testamentary or letters of administration issued by the Colorado probate court; or a court order authorizing distribution. Visit the bank with original or certified copies. The bank may also require completion of its own forms and signature cards.
Gather and protect estate funds
Keep estate money in the estate account until you have authority and a plan to distribute. Do not distribute funds prematurely. Preserve records for every deposit, withdrawal, check, and transfer.
Identify and pay valid claims and taxes
Before final distribution, you must pay valid creditor claims and estate taxes. In Colorado probate, you must follow court notice and claims procedures so creditors have the opportunity to present claims. Pay funeral costs, administration expenses, taxes, and verified creditor claims from the estate account. Keep receipts and invoices.
Prepare the final accounting / closing statement
The closing statement (also called the final accounting) lists all estate receipts (opening cash, proceeds from asset sales, income) and disbursements (payments to creditors, taxes, fees, distributions). It ends with the balance due to each beneficiary. The accounting should show dates, payees, amounts, and the reason for each transaction. Colorado courts expect clear, accurate accounting records when you file for discharge or approval.
File any required papers with the probate court
If the estate is supervised/probate is open, you will typically file a final accounting, a petition for final distribution and discharge, and a proposed order for the judge’s approval. The court may hold a hearing. When the court signs the order approving distribution and discharging the personal representative, that order is strong evidence that banks accept for releasing funds.
Provide the bank with required documents to close the account
After you have authority to distribute, present the bank with the documents the bank requires. Commonly acceptable items include the court’s order approving final distribution or discharge, a certified copy of letters testamentary/administration, a certified death certificate, and a copy of the final accounting. If the estate is small and no probate was opened, banks may accept a small-estate affidavit with your signatures and supporting documents.
Distribute remaining funds and obtain receipts
Make distributions per the will or intestacy rules after approval. Obtain written releases or receipts from beneficiaries for the distributions. The bank should close the estate account after you withdraw or transfer the remainder to the beneficiaries or to individual accounts for the heirs as instructed by the court or written beneficiary agreements.

Special situations

Small estates: Some small estates may be collected or closed without full probate using streamlined procedures. Colorado offers simplified procedures for collecting certain personal property and small estate processes—banks often accept an affidavit and proof of death for small amounts rather than full probate paperwork. Check with the bank and the court for thresholds and form requirements.
No probate opened: If you never opened probate (because the estate passed by joint ownership, beneficiary designation, or small-estate rules), the bank will follow its internal policies for releasing funds. Expect to show the death certificate and proofs of your authority to receive funds.
Disagreements among heirs: If beneficiaries dispute the accounting or distribution, the bank may require a court order before releasing funds. Obtain court guidance to avoid personal liability.

What banks commonly require from a personal representative

Certified copy of the death certificate.
Certified letters testamentary or letters of administration from the probate court (sometimes called “letters” or “letters of appointment”).
Court order approving distribution or discharging the personal representative (if probate was supervised).
Final accounting/closing statement (some banks accept a court-approved accounting; others accept an accountant-prepared statement and receipts).
Identification and signature cards from the personal representative.

Where to find Colorado forms and official guidance

Colorado’s courts publish probate forms and instructions for personal representatives. The Colorado Judicial Branch probate and forms pages provide the common final-accounting and distribution forms and instructions. For general statutory authority, Title 15 of the Colorado Revised Statutes covers probate procedures and the duties of personal representatives.

Colorado Judicial Branch probate forms and instructions: https://www.courts.state.co.us/Forms/Forms_List.cfm?Form_Type_ID=3

Colorado Revised Statutes, Title 15 (Probate): https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-15.pdf

When to consult an attorney

If creditors dispute claims or you face potential personal liability for distributions.
If beneficiaries object to the accounting or distribution plan.
If estate taxes, complex assets, or out-of-state property complicate closing.
If you’re unsure whether to open probate or can use a small-estate procedure.

Practical timeline tip: Allow time for creditor notice periods and for the court to approve a final accounting—this can be several weeks to months depending on complexity. Do not rush distributions until you have confirmed that creditor and tax obligations are satisfied or properly reserved for.

Final notes

Keep meticulous records. A clear, complete closing statement protects you and explains exactly how you handled estate funds. Banks accept court-approved documents more readily than unsigned or informal statements. When in doubt, get written bank policies and a court order if beneficiaries or creditors might later claim improper distribution.

Disclaimer: This is general information only and not legal advice. It explains common Colorado procedures but cannot predict outcomes for every situation. For specific legal guidance about a particular estate, consult a licensed Colorado attorney or the probate court.

Helpful Hints

Start record-keeping immediately: scan or photograph receipts, checks, and invoices as you receive them.
Ask the bank in writing what documents it requires to close the estate account; keep that written list with your file.
Get certified copies of the death certificate from the county vital records office; banks often require certified copies rather than photocopies.
If the estate is small, ask the bank whether it accepts a small-estate affidavit and what form it needs.
When possible, obtain a court order approving distribution—banks and beneficiaries accept court orders more readily than unsigned agreements.
Keep at least a reserved balance until creditor claim periods and tax clearances run or until you have a court-approved distribution plan.
Provide beneficiaries with a copy of the final accounting and get written receipts when you distribute funds.