Closing an estate bank account and getting the required closing statement in Massachusetts

Quick overview: If you are the personal representative (executor or administrator) of a Massachusetts estate, you generally must gather the decedent’s financial records, use your court-issued authority (Letters Testamentary or Letters of Administration), pay valid debts and taxes, prepare a final accounting, distribute remaining funds to beneficiaries, and close the estate bank account. The bank will usually issue a final account statement showing the account closed. If beneficiaries or the Probate Court require a formal accounting, you must prepare and file one under Massachusetts probate rules.

Detailed answer — step-by-step

1. Confirm who has authority to act

Only the person whom the Probate and Family Court has appointed as personal representative (PR) can legally close assets titled in the decedent’s name. If there was a will, the PR normally receives Letters Testamentary. If there was no will, the court issues Letters of Administration. Banks almost always require presentation of these letters before releasing estate funds. For general rules about administration, see Massachusetts General Laws, Chapter 190B: the Probate Code: Mass. Gen. Laws ch. 190B.

2. Identify the account type and the bank’s requirements

Ask the bank whether the account is:

• An account solely in the deceased person’s name (probate asset);
• A joint account with rights of survivorship (often passes automatically to the surviving joint owner); or
• A payable-on-death (POD) or trust account (may pass to designated payee or trustee without probate).

Banks vary in what they require to close an estate account. Typically they ask for a certified copy of the death certificate, the PR’s Letters, government ID, and the estate’s federal employer identification number (EIN) if the bank will hold funds in the estate account. Contact the bank early to get its written list of required documents.

3. Obtain an EIN (if needed)

If the estate will hold funds for any appreciable time, or if the bank requests it, apply for an estate EIN from the IRS (Form SS-4). The IRS provides an online EIN application: IRS — Apply for an EIN. An EIN is usually required to deposit funds, pay estate taxes, or file fiduciary tax returns.

4. Collect records and pay creditors, expenses, and taxes

Before distributing funds or closing the estate, the PR must identify estate assets and liabilities, pay funeral costs, valid creditor claims, administration expenses, and any outstanding taxes. Keep detailed receipts. Massachusetts law imposes fiduciary duties on PRs to manage and account for estate property—see Chapter 190B for fiduciary responsibilities: Mass. Gen. Laws ch. 190B.

5. Prepare the final accounting

The final accounting (often called the “final account” or “administration account”) summarizes all estate receipts, disbursements, fees, taxes, and proposed distributions. It typically includes:

• Beginning balance;
• All money or assets collected by the PR;
• Payments to creditors, service providers, funeral homes, tax authorities, and the PR’s fees (if allowed);
• Gains or losses on estate assets; and
• Proposed distributions to beneficiaries with corresponding receipts or releases.

A final accounting may be handled informally if beneficiaries agree in writing, or formally by filing the account with the Probate Court if required or contested. For Massachusetts Probate and Family Court forms and guidance, see: Massachusetts Probate and Family Court and the forms page: Probate and Family Court forms.

6. Ask the bank for a closing statement (final ledger)

When you present the required documents, ask the bank to provide a written “closing statement,” final account ledger, or a statement showing each transaction and a zero balance. Banks issue such documents differently—some will issue a signed letter confirming the account was closed and showing the final balance; others will print a final statement or provide an official transaction history. Keep that document with the estate’s records and attach it to the PR’s final accounting.

7. Distribute and obtain receipts/releases from beneficiaries

After the bank issues the closing statement and you distribute the remaining estate funds according to the will or intestacy rules, obtain signed receipts or releases from beneficiaries. Massachusetts often uses a Receipt and Release or similar form that confirms the beneficiary received their share and releases the PR from further liability.

8. File the final account or petition for settlement if necessary

If beneficiaries request a formal settlement or if court supervision is required, file the final account and petition the Probate Court to allow and settle the account. If the account is approved, the court will enter an order closing the estate. See the Probate Court forms and instructions on how to submit an account: Probate and Family Court forms.

9. Keep records and close out tax filings

Keep copies of the bank closing statement, receipts, releases, court orders, and tax filings. File the decedent’s final personal income tax return and any fiduciary (estate) tax returns (IRS Form 1041) if required. Consult a tax professional for filing deadlines and obligations.

Common situations and tips

• If an account was jointly held with rights of survivorship, the surviving joint owner usually can close it by presenting the bank with a death certificate and ID.
• If the estate is very small, some banks accept a beneficiary affidavit or small-estate affidavit. Banks set their own policies; confirm in writing.
• When beneficiaries agree in writing to a distribution, you may avoid a formal court accounting—but keep clear records and signed releases to reduce later disputes.
• If a bank refuses to provide a closing statement or to release funds despite proper documentation, you can petition the Probate Court for instructions or an order compelling the bank to comply.

Helpful Hints

• Start by contacting the decedent’s bank and asking for a written checklist of what the bank requires to close the account.
• Obtain certified copies of the death certificate early — banks usually ask for them.
• Get Letters from the Probate Court before asking the bank to release estate funds.
• Apply for an EIN for the estate if the bank or tax rules require it (IRS EIN online): IRS — EIN.
• Create a clear final accounting and keep original receipts, canceled checks, and invoices. These documents protect you if beneficiaries later question distributions.
• Have beneficiaries sign a written receipt and release when you distribute funds; attach the bank’s closing statement to your accounting and file or retain as required.
• If you expect disputes, or if the estate is large or complex, consult an attorney experienced in Massachusetts probate law.

Where to find official Massachusetts resources

• Massachusetts General Laws, Chapter 190B (Probate Code): https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleII/Chapter190B
• Massachusetts Probate and Family Court (information and local court contacts): https://www.mass.gov/orgs/probate-and-family-court
• Probate and Family Court forms: https://www.mass.gov/guides/probate-and-family-court-forms

Disclaimer: This article explains general Massachusetts procedures and is for educational purposes only. It is not legal advice. Laws change and individual situations vary. For advice about your specific situation, contact a licensed Massachusetts attorney or the Probate and Family Court.