Detailed Answer — How to close an estate bank account and obtain the closing statement (New York)

Closing an estate bank account is a discrete administrative task, but it sits inside the larger obligation of settling a decedent’s estate. The person handling the estate (the fiduciary — usually called the executor if there is a will, or the administrator if not) must follow both the bank’s procedures and New York fiduciary rules. Below are the practical steps, the documents you will need, and what a “closing statement” means in this context.

1. Confirm you are the authorized fiduciary

Before a bank will cash out or close an estate account, it almost always requires proof that the person requesting closure has authority from the Surrogate’s Court. That authority typically comes in the form of Letters Testamentary (if there’s a will) or Letters of Administration (if there’s no will). Obtain certified copies of those letters from the county Surrogate’s Court where the estate is being administered.

For general information on Surrogate’s Court procedures and filings see the Surrogate’s Court pages from the New York State Unified Court System: https://www.nycourts.gov/courts/surrogates/. For statute-level references see the Surrogate’s Court Procedure Act: https://www.nysenate.gov/legislation/laws/SCPA and the Estates, Powers & Trusts Law: https://www.nysenate.gov/legislation/laws/EPTL.

2. Gather the bank’s required documents

Commonly requested items include:

• Certified copy of Letters Testamentary or Letters of Administration.
• Original death certificate (or certified copy).
• Federal Employer Identification Number (EIN) for the estate (gets used for interest, taxes, and final tax filings). The estate’s EIN is not the executor’s Social Security number — apply through the IRS if needed: https://www.irs.gov/…/apply-for-an-employer-identification-number-ein-online.
• Bank account information and any bank signature card or account authorization forms.

3. Pay valid debts, taxes, and bank fees before final distribution

As fiduciary you must use estate funds to pay the decedent’s valid debts, final income taxes, and any estate taxes and administrative expenses before distributing money to beneficiaries. In New York, estate tax rules and forms are handled by the New York State Department of Taxation and Finance: https://www.tax.ny.gov/pit/estate/estate.htm.

4. Decide how the account will be closed

There are two common ways banks handle closure:

1. Bank issues a final account statement and distributes the remaining cash by check payable to the estate (or to beneficiaries if properly authorized).
2. Bank provides a detailed closing statement (transaction history, interest paid, fees charged) and cancels the account. The fiduciary then uses that information for the estate’s final accounting and distribution records.

5. Get the bank’s closing statement / final accountings

The bank’s closing statement usually shows opening balance, deposits, withdrawals, interest, fees, and the final distribution. Ask the bank for:

• A final, itemized account statement for the date the account was closed.
• Copies of any checks or transfers made from the account (if available).
• An official signature or stamp showing the account is closed and the final balance paid out.

Keep originals and certified bank statements in the estate file. These documents support the fiduciary’s final accounting to beneficiaries and, if required, the Surrogate’s Court.

6. Prepare the fiduciary’s final accounting (if required)

“Closing statement” can mean two things: the bank’s closing record and the fiduciary’s formal accounting. In New York, fiduciaries may have to render accountings to beneficiaries and/or the Surrogate’s Court depending on the estate’s circumstances and the terms of the will. A formal accounting generally lists all estate receipts, disbursements (including what the bank paid out), and proposed distributions. The Surrogate’s Court Procedure Act and related rules govern when and how accountings are filed; review the SCPA and local court rules for exact requirements: https://www.nysenate.gov/legislation/laws/SCPA.

7. Obtain receipts and releases from beneficiaries (recommended)

When you distribute funds to beneficiaries, obtain signed receipts or releases. These show beneficiaries accepted their share and can reduce later disputes. If a beneficiary objects, the objection is generally handled through the Surrogate’s Court.

8. Keep full records and file any required tax returns

Keep the bank’s closing statement, copies of distributions, paid bills, tax filings, and correspondence. File required final income tax returns for the decedent and any estate tax returns. Depending on the estate size, you may need to file a New York estate tax return: https://www.tax.ny.gov/pit/estate/estate.htm.

9. When to involve the Surrogate’s Court

If beneficiaries dispute the accounting or distribution, or if you lack clear authority (for example, if Letters haven’t been issued), you may need to file a petition or submit the accounting to the Surrogate’s Court for judicial settlement. The Surrogate’s Court can approve (or require changes to) the accounting under the Surrogate’s Court Procedure Act. For process and local forms, check your county Surrogate’s Court web page on the New York Courts site: https://www.nycourts.gov/courts/surrogates/.

Typical timeline

Assuming letters are in hand and no disputes exist, a straightforward account closure can often be completed in a few days to a few weeks (time to obtain an EIN, clear checks, or satisfy outstanding bills may extend this). If court accounting or creditor claims are needed, expect a longer timeline.

What if the estate is small?

New York provides simplified procedures for small estates in some circumstances. If the estate value is below statutory thresholds, you may be able to distribute assets without a full probate or simplified court procedures may apply—check the Estates, Powers & Trusts Law and your county Surrogate’s Court for the small estate rules that apply: https://www.nysenate.gov/legislation/laws/EPTL.

If a bank resists closing the account

Common reasons banks delay include incomplete documentation, unresolved holds, or doubts about the authority presented. If you have Letters and an EIN and the bank still refuses, ask for a written explanation and consider contacting the bank’s fiduciary services line or legal department. If the problem continues, you can seek guidance or relief from the Surrogate’s Court.

Helpful Hints

• Bring certified copies of court-issued letters—banks usually will not accept photocopies.
• Get an EIN for the estate early; banks often require it before closing or issuing interest statements.
• Ask the bank up front for an itemized closing statement and copies of cancelled checks or electronic transfer records.
• Keep a separate, labeled file (electronic + paper) for all estate bank records, tax returns, and receipts.
• Obtain receipts or written releases from beneficiaries when you distribute funds—this reduces later disputes.
• If there are creditor claims, do not distribute funds until valid claims are resolved per NY law.
• If the estate is complex or contested, consider consulting an attorney who practices estate administration in New York for court accounting and dispute strategy.
• Use official New York resources for statutes and court procedures: SCPA (https://www.nysenate.gov/legislation/laws/SCPA), EPTL (https://www.nysenate.gov/legislation/laws/EPTL), and NY Courts Surrogate pages (https://www.nycourts.gov/courts/surrogates/).