Detailed Answer — closing an estate bank account and getting the closing statement in Oregon
When a person dies, the estate’s bank accounts usually cannot be closed until someone with legal authority acts for the estate, debts and taxes are handled, and the estate’s funds are distributed. In Oregon, the process will depend on three facts: whether the account has a named beneficiary or is jointly held, whether the estate is opened in probate, and whether the estate qualifies for a simplified (small‑estate) process. Below are the practical steps you’ll follow and the legal paths you may take.
Step 1 — Identify the account type and immediate bank rules
- Check the account record: is it a payable‑on‑death (POD) or transfer‑on‑death (TOD) account, or was it jointly owned with rights of survivorship? If yes, those designations usually let the named beneficiary or surviving joint owner take the funds directly by showing identification and a death certificate.
- If the account is solely in the decedent’s name with no beneficiary, the bank will generally require proof that the person presenting the request has legal authority (for example, letters testamentary or letters of administration issued by the probate court).
Step 2 — Get the documents banks typically require
Banks vary, but commonly requested items include:
- Certified copy of the death certificate (obtainable from Oregon Health Authority: Oregon Vital Records).
- Letters testamentary or letters of administration issued by the probate court if the estate was opened in probate (see Oregon probate rules and statutes below).
- Personal identification for the personal representative (photo ID).
- Estate tax ID (Employer Identification Number) if the bank will transfer estate funds to an estate account rather than to you personally. You get this from the IRS.
Step 3 — Open an estate bank account (if needed)
If you are the personal representative and the estate will pay bills or hold funds before distribution, open a bank account in the estate’s name (often labeled “Estate of [Name], by [Personal Representative]”). Use the estate EIN rather than the decedent’s SSN once appointed as representative.
Step 4 — Collect assets, pay debts and taxes, and document transactions
Before closing an estate account you must:
- Gather and deposit any funds owed to the estate (final paychecks, dividends, refunds).
- Identify and pay valid creditors and funeral expenses in the correct priority under Oregon law.
- Reserve amounts needed for estate or income taxes, and prepare any estate tax returns if required.
- Keep detailed transaction records — receipts, cancelled checks, invoices, and bank statements — because you’ll need them for the closing statement and for the probate court if the estate was opened.
Step 5 — Prepare the closing statement / final accounting
There are two different but related documents people call a “closing statement”:
- The bank’s closing statement — a written confirmation from the bank showing the account number, that the account was closed, the final balance, and where funds were transferred or paid. Ask the bank for a formal closing letter or statement when you close the account.
- The personal representative’s final accounting (estate closing statement) — a complete accounting of all estate receipts, disbursements (including distributions to heirs or beneficiaries), fees and expenses. If the estate was opened in probate, Oregon law and local court rules require either filing this accounting or presenting it to the court as part of the petition for final distribution and discharge.
What to include in your final accounting: beginning balance, deposits, income, all payments (creditors, taxes, funeral, administrative expenses), fees for the personal representative or attorney (if any), distributions to beneficiaries, and the ending balance or zero balance after distributions.
Step 6 — File with the probate court if required
If you opened a probate estate, you typically must file inventories, accountings and a petition for final distribution before the court will issue an order closing the estate and discharging the personal representative. Oregon’s rules for estate administration are in the Oregon Revised Statutes (see Chapter 113 on administration of estates): ORS Chapter 113. The Oregon Judicial Department posts probate forms and local instructions here: OJD Probate Forms.
Step 7 — Obtain the bank closing statement and attach it to your final accounting
When you close the estate bank account, ask the bank for a written closing statement showing:
- Account number (or last 4 digits), the closing date, and the final balance;
- How the final funds were disbursed (transferred to the estate account, withdrawn, or paid by check with numbers listed); and
- Bank contact and signature or stamped confirmation if available.
Attach the bank’s closing statement as supporting evidence to your estate final accounting or to the probate court petition for final distribution. The bank’s closing statement proves how funds left the account; the personal representative’s accounting explains why and to whom funds were paid.
When you may not need probate or a court accounting
If the account passes by beneficiary designation or joint tenancy, the funds may transfer without probate. Small‑estate procedures also exist; a simplified affidavit or summary process can sometimes avoid full probate. Whether those options apply depends on the account size, the decedent’s other assets, and the specific titles or beneficiary designations. Consult local rules or an attorney to confirm.
Timing and practical points
- Do not distribute estate funds until you have paid or properly reserved for known debts and taxes.
- Keep clear, organized records — courts and beneficiaries expect clear documentation.
- Expect banks to treat money subject to probate more conservatively; banks may require court paperwork before releasing funds.
Statutes and official resources
- Oregon Revised Statutes, administration of estates: ORS Chapter 113 (general estate administration rules).
- Oregon Judicial Department probate forms and instructions: OJD Probate Forms.
- Death certificates and vital records (for obtaining certified copies): Oregon Health Authority — Vital Records.
When to consult an attorney
Consider hiring an attorney if the estate has contested claims, unclear title to assets, potential estate tax issues, multiple beneficiaries with disputes, or complicated business or real property holdings. An attorney can draft the final accounting, prepare the petition for final distribution, and represent the personal representative in court proceedings.
Disclaimer: This information is educational and general in nature and is not legal advice. It does not create an attorney‑client relationship. For advice about a particular situation, consult a licensed attorney in Oregon.
Helpful Hints
- Start by asking the bank what documents they require — banks use standard checklists and can tell you exactly what they need to close an account.
- Get multiple certified death certificates early; banks and other agencies often require originals or certified copies.
- Keep a running spreadsheet of every deposit and payment made by the estate and cross‑reference it to bank statements.
- If the estate is small and only has a few assets, check whether Oregon’s simplified or small‑estate procedures apply before opening full probate.
- When you close the account, request a dated, written bank closing statement and save a copy in the estate file and in the court filing packet (if probate applies).
- If beneficiaries ask for proof of distribution, provide the final accounting and the bank closing statement — those documents usually satisfy reasonable requests.
- Ask the bank to show the exact transaction(s) that removed the funds (transfer confirmation or cancelled check numbers); vague notes are less useful in court.