Detailed Answer

Closing an estate bank account in Montana and obtaining the required closing statement is a multi-step process that involves identifying the personal representative (executor), gathering required documents, paying valid debts and taxes, preparing an accounting, and either obtaining a court discharge (for supervised estates) or retaining records (for unsupervised estates). Below is a clear, practical walkthrough of the typical steps under Montana law, links to official resources, and common issues to watch for.

Who can close the estate account?

The person authorized to close an estate bank account is the estate’s personal representative (sometimes called executor or administrator). The bank will generally require proof of the representative’s authority before releasing funds. That authority typically comes from either:

• a court-issued document (letters testamentary or letters of administration) if the estate is opened formally with the probate court; or
• an original or certified copy of the will plus proof that the named executor is acting, if the bank accepts that in an unsupervised administration scenario.

Step-by-step: How to close the estate bank account

1. Confirm who is the personal representative. If the estate has been opened in Montana district court, the clerk will issue letters testamentary or letters of administration. These are the primary proof banks accept. See Montana probate resources: Montana Courts — Probate (self-help).
2. Gather required documents to present to the bank.
   • Certified death certificate.
   • Letters testamentary or letters of administration (court-issued) OR a certified copy of the will and any required affidavits if the bank allows unsupervised proof.
   • Personal identification for the representative (driver’s license or other photo ID).
   • Estate taxpayer identification number (EIN) if the account has become an estate account for tax reporting. You can obtain an EIN from the IRS: IRS — Apply for an EIN.
3. Notify the bank and request the account closing procedure and final statement. Ask the bank what documents they need and whether they require a court order to distribute funds. Banks have internal forms for fiduciary accounts and may require an indemnity or signature guaranty for large disbursements.
4. Pay valid estate debts, taxes, and administrative expenses first. Before final distribution, the personal representative must pay creditors and any estate taxes. Montana’s statutes and court rules set priorities and procedures for creditor claims. (See Montana law for decedents’ estates via the Montana Code Annotated: Montana Code Annotated (MCA) — search.)
5. Prepare a final accounting. Whether the estate is supervised or unsupervised, a responsible representative prepares a final accounting of all receipts, disbursements, and distributions. For supervised estates, the court typically requires a filed closing accounting and a court order approving distributions before the bank will release all funds. For unsupervised estates, the representative should still prepare and keep an accurate accounting and provide copies to beneficiaries on request.
6. Obtain releases or waivers from beneficiaries if appropriate. If beneficiaries consent to distributions, signed releases or receipts reduce the chance of later disputes.
7. Request the bank’s final closing statement and distribute funds. When the bank closes the estate account, request a bank-issued final account statement showing a zero balance and all transactions through the closing date. Keep multiple copies in the estate file. The bank may also provide confirmation letters showing funds were disbursed to named payees (creditors, beneficiaries, or transfers to other estate accounts).
8. File documents with the court if required. If probate was supervised or the court required a final report and discharge, file the final account and petition for discharge so the court can enter an order formally closing the estate. The court’s order is often needed to release some assets or to obtain indemnities from third parties.

What is the “required closing statement”?

There are two items that people commonly mean by “closing statement”:

• Bank-issued final statement: a statement from the bank showing final transactions and the account is closed. Banks prepare this when they close an account and can provide it upon request.
• Fiduciary final accounting: a detailed list the personal representative prepares that shows everything the estate received and paid, and how remaining funds were distributed. If the estate is supervised, Montana courts will typically require filing the final accounting and supporting documents before discharging the representative. See Montana Code (probate statutes) for filing/accounting requirements: search the MCA at https://leg.mt.gov/bills/mca/.

When does the court need to be involved?

Montana allows both supervised and unsupervised probate administration depending on the estate and the choices made. If the estate administration is supervised by the court, you must submit accountings and obtain court approval prior to final distribution. If the estate is unsupervised, the personal representative still has the duty to account fully to beneficiaries and keep records, but may not need prior court approval to close the bank account. Check local Montana district court rules and MCA chapters governing decedents’ estates for exact filing requirements: Montana Code Annotated.

Common complications

• Joint accounts, POD (payable-on-death) designations, and trust accounts may pass outside probate and require different steps.
• Banks sometimes freeze accounts and insist on court orders when multiple potential representatives or beneficiaries dispute authority.
• Outstanding creditor claims, federal or state tax issues, and unpaid funeral bills must be resolved before full closing.
• Some banks will not accept beneficiary waivers in place of court orders for large or contested estates.

Where to find Montana statutes and official resources

Primary official sources:

• Montana Code Annotated (search and read relevant probate statutes): https://leg.mt.gov/bills/mca/
• Montana Courts — probate self-help and local court contacts: https://courts.mt.gov/selfhelp/probate
• IRS — apply for an EIN for the estate (if required): https://www.irs.gov/

Estimated timeline: Closing the bank account can take a few days to several months depending on whether claims must be paid, whether the estate is supervised, and whether the bank requires court orders.

Practical example (hypothetical facts)

Suppose Alice is the court-appointed personal representative for Bob’s Montana estate. She obtains letters testamentary from the district court, gets certified copies, and brings them and a death certificate to Bob’s bank. The bank converts Bob’s personal account to an estate account and requires an EIN for future tax reporting. Alice pays final funeral costs and two small creditor claims, prepares a final accounting showing all receipts and disbursements, obtains signed releases from beneficiaries, and gives the bank signed distribution instructions. The bank issues a final bank statement showing a zero balance and a record of each distribution. Because this was a supervised estate, Alice files the final accounting with the court and obtains a discharge order. She keeps the bank’s final closing statement and the court discharge in the estate file.

Disclaimer

This information is educational only and is not legal advice. Laws change and every case is different. For advice about a specific situation in Montana, consult a Montana-licensed attorney or the local probate court.

Helpful Hints

• Bring certified death certificate(s) and certified court letters when you visit the bank—copies alone are often not enough.
• Get an EIN for the estate early if the bank asks for it; banks and tax filings commonly require it.
• Keep a full file of bank statements, receipts, paid invoices, and copies of distributions—the final accounting depends on these records.
• Ask the bank for their checklist for fiduciary account closing—each bank has internal procedures and forms.
• If beneficiaries object to closing, avoid unilateral distributions; get a court order or written releases to reduce later liability.
• If the estate likely requires court supervision (complex assets, disputes, large creditor issues), consult an attorney early to avoid delays.
• For small estates, Montana has informal procedures—check Montana Courts information or local rules for simplified closing options.
• Retain the bank’s final closing statement and any court discharge permanently with the estate records.