Closing an Estate Bank Account and Getting the Required Closing Statement — Louisiana

Short answer: In Louisiana you close an estate bank account by acting as the person authorized by the succession process (the succession representative, executor, or administrator), presenting the bank with the documents the bank requires (death certificate, court-issued proof of authority or a lawful small‑succession affidavit when allowed), having the bank liquidate or transfer the funds, and asking the bank for an itemized, written closing statement or final account. If the estate is being administered through the court, the succession representative will also prepare and file the required final accounting in the succession proceeding.

Detailed answer — step-by-step under Louisiana law

1. Determine how the estate is being handled

Louisiana uses the succession process (probate). The steps you take depend on whether the estate is being administered formally through the succession court or through a simplified/small succession process. Banks follow both state law and their own policies, so you must satisfy both.

2. Identify who the bank will recognize as authorized to act

Common lawful authorities the bank will accept include:

• A court-appointed succession representative (executor/administrator/“succession representative”) shown by official court documents.
• The surviving joint account holder (if the account is payable‑on‑death or a true joint account with right of survivorship).
• When applicable, heirs presenting an affidavit for a small succession if the bank accepts that affidavit under Louisiana law and its internal policy.

3. Gather the typical documents the bank will request

While banks differ, most will want at least:

• Certified copy of the decedent’s death certificate.
• Original or certified copy of the will (if there is one), if the will affects the account.
• Letters or court document proving authority to act for the succession (e.g., court order appointing the succession representative or letters testamentary/administration).
• Photo ID for the person requesting the transaction.
• Account numbers or bank statements for the account to be closed.
• When no formal succession has been opened, many banks accept a properly prepared small succession affidavit if state law and the bank allow it.

4. Visit the bank and request closing

Tell the bank you want to close the estate account and request an itemized, written closing statement or final accounting (often called a “closing statement,” “final account statement,” or “estate disposition statement”). The bank will:

• Verify the authority you present.
• Hold or clear outstanding checks and pending electronic transactions.
• Apply any bank fees, liens, or garnishments against the account, if applicable.
• Issue a check or transfer of remaining funds either to the estate’s new account, to the succession representative, or directly to heirs per the bank’s procedures and the succession instructions.

5. Obtain the bank’s closing statement and the succession final accounting

Ask the bank to provide a written, itemized closing statement showing beginning balance, deposits, withdrawals, fees, transfers, and the final disposition of funds. Save this document.

If the succession is formal (court-supervised), the succession representative must also prepare a final accounting and file it with the succession court. The court filing and the bank closing statement serve different purposes: the bank statement documents what the bank did with the account; the court accounting documents the representative’s management of all estate assets and distributions and is submitted to the court for approval. If you need to find the procedural rules and forms for succession accounting or filing requirements, consult the Louisiana succession rules and the clerk of the court in the parish where the decedent lived. For general information from the state legislature, see: https://legis.la.gov/legis/Law.aspx

6. If bank refuses to close or provide a statement

Common reasons for refusal include unresolved creditor claims, pending litigation, lack of acceptable proof of authority, or a joint owner still living. If the bank refuses:

• Confirm exactly what documentation they need and request that in writing.
• If the account is being held because a formal succession is required, you may need to open the succession in court and obtain letters of administration or a court order directing the bank to release funds.
• If a dispute exists among heirs about distributions, consider opening a succession proceeding and asking the court to resolve the distribution or compel the bank to produce records or disburse funds.

7. Special situations to watch for

• Joint accounts: Louisiana applies special rules to joint accounts and survivorship rights. A surviving joint owner often has immediate access, but banks will still require ID and a death certificate.
• Payable-on-death (POD) or beneficiary designations: these bypass the succession for the funds named to the beneficiary, but the bank will still require proof of death and appropriate ID from the beneficiary.
• Small successions: Louisiana permits summary procedures in some small‑asset successions. Banks vary on whether they accept a small succession affidavit instead of court letters; confirm bank policy first.
• Tax and creditor holds: If estate tax returns or known claims remain unresolved, the succession representative may need to withhold distributions until obligations are satisfied.

8. Keep records

Keep a copy of the bank’s closing statement, canceled checks, disbursement records, and any court filings. These documents protect the succession representative from later claims and are required if you must file a final accounting with the court.

When a formal court accounting is required

If the estate is administered through the succession court, Louisiana practice generally requires the succession representative to prepare an accounting that lists all estate assets, dispositions (including what the bank paid or transferred), and distributions to heirs or creditors. The court may require notice to heirs and approval of the accounting before final distribution. If you are the succession representative, follow the local parish court’s rules and required forms for filing a final account.

Helpful Hints

• Start with the bank: call the branch manager or estate services department and ask for a written list of the documents the bank requires to close the estate account.
• Obtain multiple certified copies of the death certificate—banks and government agencies will all ask for one.
• If the estate appears small or simple, ask the bank whether it accepts a small succession affidavit instead of court letters; verify the statutory threshold and requirements with the clerk of court or an attorney.
• Ask the bank for an itemized closing statement in writing before the funds are removed. If funds are paid out, ask for a receipt for the distribution.
• Keep all bank statements, canceled checks, and receipts. They are essential if you must file a final accounting with the court or defend against creditor claims.
• If you expect creditor claims or tax issues, hold back funds until you get legal or tax guidance. Improper distributions can make a succession representative personally liable.
• If the bank’s requirements are unclear or if heirs disagree, consult a Louisiana attorney who handles successions to avoid costly mistakes.
• Contact the clerk of the succession court in the parish where the decedent lived for local forms and procedures; the clerk can confirm what the court will accept as proof of authority.

Where to look for official guidance: The Louisiana Legislature’s website lists state statutes and can help you locate succession and probate law: https://legis.la.gov/legis/Law.aspx. For court procedure, contact the parish clerk of court where the decedent resided.

Disclaimer: This information is educational only and does not constitute legal advice. I am not a lawyer. For help applying these general principles to a specific situation in Louisiana, consult a licensed Louisiana attorney or the succession court clerk in the decedent’s parish.