Detailed Answer — Step-by-step under New Jersey law

1. Confirm who has legal authority to act for the estate

Only the person named in court-issued Letters Testamentary or Letters of Administration may legally control and close an estate bank account. If you were named as executor in the will, you normally must present certified Letters Testamentary from the county Surrogate’s Court before the bank will release funds. If no will, the court issues Letters of Administration to the appointed administrator.

2. Inventory assets, account records, and open (or continue) an estate account

Collect the decedent’s bank statements, a certified copy of the death certificate, and any beneficiary designations. If funds have been moved into a separate “estate” account for administration, keep that account separate from your personal accounts. Keep detailed records of every deposit and withdrawal.

3. Notify creditors and pay valid debts and taxes

Before you can safely close the estate bank account you must make sure legitimate creditors and tax obligations are addressed. That may include:

• Publishing notice to creditors if required by the Surrogate’s Court procedures;
• Paying funeral expenses, administration costs, and valid creditor claims;
• Filing any New Jersey estate tax or final income tax returns and paying taxes due.

New Jersey probate and fiduciary rules are found in Title 3B (Estates and Fiduciary Relations). For general guidance and court procedures see the New Jersey Courts probate pages: NJ Courts – Probate & Surrogate’s Court and the state statutes hub: N.J. Statutes (Title 3B).

4. Prepare a final accounting / closing statement

The closing statement (final accounting) is a chronological record showing all estate receipts, disbursements (including payments to creditors and taxes), and the proposed distributions to beneficiaries. It typically contains:

• A beginning balance and list of estate assets;
• All money that came into the account (e.g., bank balances, sale proceeds, interest);
• All estate expenses and creditor payments (with supporting receipts or vouchers);
• Proposed distributions to beneficiaries with amounts and basis for distributions;
• A concluding balance of zero (or explanation of remaining funds) once distributions are complete.

In many New Jersey estates the personal representative prepares the final accounting and either (a) files it with the Surrogate’s Court for approval, or (b) obtains written receipts and releases from beneficiaries accepting the accounting and authorizing distribution. If beneficiaries consent in writing, a formal court accounting may not be necessary.

5. Get beneficiary receipts or court approval

Two common ways to finalize the accounting:

1. Beneficiary consent: If all beneficiaries sign receipts/releases that accept the accounting and agree to distributions, provide those to the bank and close the account.
2. Court approval: File the accounting with the Surrogate’s Court and obtain an order or certificate approving the final distribution. Banks accept a certified court order or court-approved accounting as authority to disburse and close the account.

6. Present required documents to the bank and close the account

Typical documents the bank will require:

• Certified Letters Testamentary or Letters of Administration from the county Surrogate;
• Certified copy of the death certificate;
• Final bank statement and the estate final accounting/closing statement;
• Either beneficiary releases/receipts or a certified Surrogate’s Court approval/order authorizing distribution;
• Proof of identity for the personal representative (driver’s license, passport).

Once the bank confirms everything, it will issue final pay-out checks to the estate or directly to beneficiaries (depending on instructions) and close the account. Ask the bank for a closing confirmation letter or statement showing a zero balance and date of closure.

7. Keep careful records and get a final discharge if appropriate

Retain copies of the closing statement, bank closing confirmation, receipts, tax filings, and beneficiary releases. If the Surrogate’s Court issues a discharge or an order approving the final accounting, keep the certified copy. These records protect the personal representative from later claims.

Special situations to watch for

• Joint accounts or payable-on-death (POD) designations usually bypass probate and do not require estate account closure—confirm how the bank treated those assets.
• If a beneficiary objects to the accounting, you may need to file a formal accounting in Surrogate’s Court and attend a hearing.
• Small estate or summary procedures: New Jersey has streamlined processes for smaller estates; the Surrogate’s office can advise whether summary procedures apply.

For county-specific forms and instructions, visit the New Jersey Courts Surrogate pages: NJ Courts – Surrogates. For tax questions, see the New Jersey Division of Taxation: NJ Division of Taxation.

Statutes and rules

New Jersey’s probate and fiduciary framework appears in Title 3B of the New Jersey Statutes (Estates and Fiduciary Relations). See the statutes and Surrogate guidance at the New Jersey Legislature site: https://www.njleg.state.nj.us/statutes and the court’s probate pages: https://www.njcourts.gov/selfhelp/probate/index.html.

Helpful Hints

• Bring originals and certified copies: Banks often require a certified copy of Letters and a certified death certificate rather than photocopies.
• Do not distribute before debts or taxes are settled: Distributing too early can make the personal representative personally liable for unpaid claims.
• Get written beneficiary releases: A signed receipt from beneficiaries speeds bank approval and avoids court filings.
• Ask the bank for a closing letter: A dated bank confirmation showing a zero balance is a key record for your file.
• Keep the estate account open until final checks clear: Outstanding checks or wire holds can delay true closure—wait until everything clears.
• Use vouchers and receipts: Attach supporting receipts to the final accounting so beneficiaries and the court can see where money went.
• Check for state filing requirements: Some counties require you to file a final accounting or report—call the county Surrogate’s office or check its website.
• Consider professional help for complex estates: If there are disputes, business interests, many creditors, or tax issues, talk to an attorney or an accountant familiar with New Jersey probate.