Detailed Answer — Closing an Estate Bank Account and Getting the Closing Statement in Connecticut
When someone dies, their bank accounts that belong to the decedent become part of the estate (unless payable-on-death, joint with rights of survivorship, or otherwise excluded). In Connecticut, closing an estate bank account and getting the required closing statement is a process that primarily involves three players: the personal representative (executor or administrator), the probate court, and the bank. Below are the clear, step-by-step actions typically required and the legal context you will encounter.
Step 1 — Confirm who has authority to act
Only a person with lawful authority can legally control estate accounts. That authority usually comes from:
- Letters testamentary (if there is a will) or letters of administration (if there is no will) issued by the Probate Court; or
- a signed affidavit or a small-estate statutory procedure where applicable (in limited situations banks may release property with an affidavit if state rules allow).
To start, locate the decedent’s will (if any) and petition the Probate Court to appoint a personal representative. The Connecticut Probate Court issues written proof of authority (letters) that the bank will accept.
Connecticut probate procedures and forms are available from the Connecticut Judicial Branch: https://www.jud.ct.gov/webforms/probate/.
Step 2 — Provide the bank with required documents
Banks will normally require all of the following before allowing you to access or close an estate account:
- Certified copy of the death certificate;
- Original or certified copy of Letters Testamentary or Letters of Administration issued by the Connecticut Probate Court;
- Government ID for the person acting on the account;
- Estate tax clearance or proof of filing when applicable (see step 4); and
- Any bank-specific forms (some banks have their own affidavit or indemnity forms).
Ask the bank to provide a final, itemized account statement (often called a “final account” or “closing statement”) showing the account balance, all transactions up to the closing date, and confirmation that the account is closed. If the bank will not produce a certified closing statement automatically, request a written ledger or bank-produced printout that is stamped or signed by the bank’s representative and includes the account closing date and final balance.
Step 3 — Pay debts, taxes, and expenses before distribution
Under Connecticut probate practice, the personal representative has a fiduciary duty to collect assets, pay valid debts and funeral expenses, file required tax returns, and only then distribute any remaining funds to beneficiaries. Before you close the main estate account and distribute funds you should:
- Obtain creditor claims information and pay legitimate claims;
- File final federal and state income tax returns for the decedent and, if required, estate tax returns for Connecticut; and
- Document all payments and retain receipts.
Connecticut estate and inheritance tax rules are handled by the Connecticut Department of Revenue Services. See: https://portal.ct.gov/DRS.
Step 4 — File a final accounting with the Probate Court (if required)
Most estates require the personal representative to render a final account to the Probate Court and obtain court approval or file a closing statement, depending on the probate track. A proper final account normally shows:
- An inventory or list of estate assets and their values;
- All receipts and disbursements during the administration (including payments to creditors, funeral expenses, taxes, and administrative expenses);
- The final balance and a proposed distribution schedule to beneficiaries; and
- Receipts or waivers from beneficiaries after distribution if required.
The Probate Court will review the accounting and may approve it, allow exceptions, or require further documentation. Once the court approves the final account and issues a discharge or decree, the personal representative’s duties regarding those assets are typically complete.
For general Connecticut probate law (title and statutory provisions that govern probate procedures), see the Connecticut General Assembly’s probate-related statutes: https://www.cga.ct.gov/current/title_45a.htm.
Step 5 — Obtain and keep the estate closing statement
The “required closing statement” can refer to two related items:
- The bank’s final account/closing statement showing the account’s final transactions and closing balance; and
- The personal representative’s final accounting or closing statement filed with (or approved by) the Probate Court documenting how estate assets were collected, used to pay debts, and distributed.
Practical tips to obtain these documents:
- Request the bank’s final statement in writing and ask for a stamped or signed copy that includes the date the account was closed.
- Make sure the bank includes all recent payments (checks outstanding may appear as pending). Ask the bank to stop any outstanding checks before closing if appropriate.
- Prepare a written final accounting (with attached bank statements and receipts) and file it with the Probate Court when required. After court approval, obtain a certified copy of the approval or discharge for your records.
Step 6 — Distribute funds and close the account
Only after obligations are paid and the court (if required) has approved the accounting should the personal representative distribute funds to beneficiaries and close the estate bank account. When distributing funds, obtain signed receipts or releases from beneficiaries where practical. Then provide the bank the court approval (if required) and the instructions to close the account and issue final checks to beneficiaries.
What if a bank refuses to close or will not release a closing statement?
If a bank refuses, check whether you provided properly authenticated probate letters and a certified death certificate. If the bank still will not cooperate, you can:
- Ask to speak with the bank’s estate or legal services department;
- Provide a probate court order directing the bank to act; or
- Return to the Probate Court and request an order compelling the bank to provide account records to the personal representative.
Probate courts have authority to order banks to turn over records or release funds to the court-appointed representative.
Helpful Hints
- Start with the probate appointment: banks will not accept informal authority. Obtain Letters Testamentary or Letters of Administration from the Connecticut Probate Court before demanding access.
- Bring originals or certified copies of documents: banks typically insist on certified probate letters and original death certificates.
- Obtain an EIN for the estate: banks often require the estate’s Employer Identification Number (EIN) to open or manage an estate account. Apply online with the IRS before making distributions.
- Ask for a stamped, dated bank ledger: a bank-produced, signed statement showing the closing balance protects you when you later file a final accounting.
- File tax returns early: unresolved tax issues can delay closing. Check with the Connecticut Department of Revenue Services regarding any required estate tax filings: https://portal.ct.gov/DRS.
- Keep meticulous records: save bank statements, invoices, canceled checks, receipts, and the probate court approval. Keep records for several years after closing in case questions arise.
- Consider professional help: if the estate is complex or a bank refuses to cooperate, consider hiring a probate attorney or an accountant experienced in estate administration.
- Communicate with beneficiaries: disclose the final accounting and obtain receipts or releases where feasible to reduce later disputes.
Final Practical Checklist
- Obtain appointment from Connecticut Probate Court (Letters).
- Get certified copy of death certificate.
- Open an estate account (if needed) and obtain estate EIN from the IRS.
- Collect bank statements and request a stamped final closing statement from the bank when you close the account.
- Pay debts, file tax returns, and obtain tax clearance if applicable.
- Prepare and file the final accounting with the Probate Court; obtain court approval or discharge.
- Distribute remaining funds, obtain receipts, and close the estate account.
- Retain copies of all documents and the bank’s closing statement for the estate file.
Where to Find Official Connecticut Resources
- Connecticut Judicial Branch — Probate forms and local court contact info: https://www.jud.ct.gov/webforms/probate/
- Connecticut General Assembly — Probate-related statutes (Title 45a): https://www.cga.ct.gov/current/title_45a.htm
- Connecticut Department of Revenue Services (estate tax guidance): https://portal.ct.gov/DRS
Disclaimer
This information is educational only and does not constitute legal advice. It explains common Connecticut procedures but cannot address every situation. For advice tailored to your facts, consult a licensed Connecticut probate attorney or contact the local Probate Court.