Closing an Estate Bank Account and Getting the Required Closing Statement in Texas

Short answer: In Texas you close an estate bank account by proving your authority to the bank (usually with probate court-issued letters or a small‑estate affidavit), paying valid debts from estate funds, making required tax filings, then requesting the bank’s final account or ledger. If the estate is under court supervision you will also file a final accounting with the probate court. This article explains the typical steps, what documents banks require, and how to obtain the closing statement you will need for beneficiaries and the court.

Disclaimer

This information is educational only and is not legal advice. I am not a lawyer. For advice about a specific estate or dispute, contact a Texas probate/estate attorney or your local probate court.

Detailed answer — step‑by‑step under Texas law

1. Figure out whether probate is required and what authority you hold

When someone dies, the bank will not release estate funds to just anyone. You must show legal authority to act for the decedent’s estate. Common forms of authority in Texas:

• Letters Testamentary (if you are the executor named in a will) or Letters of Administration (if there is no will). Those are issued by the probate court after you open a probate case.
• Independent administration authority — Texas allows independent administration in many cases, which gives the personal representative more latitude to act without ongoing court supervision. That authority normally is documented in the probate order or letters.
• Affidavit methods for small estates or heirship affidavits for certain situations. Texas has non‑court collection methods for smaller estates or specific types of property, but the bank must accept the form you present.

For general information on Texas probate procedures and the Estates Code, see the Texas statutes and the Texas judicial branch probate information: Texas Statutes (official) and Texas Courts — Probate Information.

2. Gather the documents banks typically require

Most banks will request some combination of these items before they allow you to close an estate account or disburse funds:

• Certified copy of the death certificate (the bank will usually want an official certified copy).
• Certified copy of Letters Testamentary or Letters of Administration (sealed copy from the probate court) — banks nearly always want a court-certified document showing your appointment.
• The will, if there is one (bank may want to see it, especially if it names the executor).
• Personal identification for the representative (driver’s license, passport).
• Federal Employer Identification Number (EIN) for the estate if the bank will keep the account open while settling debts and taxes (you get this from the IRS).
• A copy of a court order authorizing an independent administration if applicable; in some counties you file and receive an order that clarifies your powers.
• Small‑estate affidavit or affidavit of heirship where the bank accepts it (these are accepted by some banks but not all).

3. Open an estate (fiduciary) account if you haven’t already

Often the decedent’s account should be transferred into an estate or fiduciary account (account name that identifies it as estate of X, administered by you). Banks typically require letters or court paper and an EIN to open the estate account. Do not distribute estate funds until you know what debts and taxes must be paid.

4. Use estate funds to pay valid expenses and claims

Under Texas law the representative must pay the estate’s valid debts, funeral costs, and expenses before distributing to beneficiaries. Keep detailed receipts. If the estate is independent administration and not court‑supervised, you still have fiduciary duties to act in good faith and keep beneficiaries informed.

5. Ask the bank for a final closing statement or ledger

Once you are ready to close the account (after debts are paid and distributions are approved or directed by the court), request the bank’s final closing statement or account ledger. Banks typically produce a document that shows:

• Starting balance, deposits, and interest earned during administration;
• Checks and transfers out (payments to creditors, distributions to beneficiaries, fees);
• Ending balance and confirmation that the account is closed.

Ask the bank specifically for a “final trustee/estate account statement” or “final closing ledger.” If the bank will not provide it in the form you need, request a transaction history plus a signed letter from a bank officer confirming the account closure and final balance.

6. Provide the closing statement to beneficiaries and the court, if required

If the estate was administered under court supervision, file the bank’s closing statement as part of your final accounting (this is usually required). If you administered the estate independently, you should still provide a written final accounting to beneficiaries showing the bank statement and all disbursements. Texas law requires that fiduciaries act transparently; beneficiaries may request an accounting and can petition the court if they suspect wrongdoing.

7. If a bank refuses or there is a dispute

If the bank refuses to release funds despite proper documents, or if a financial institution demands something unusual, take these steps:

• Ask the bank for a written list of exactly why they refuse and what document they need.
• Contact the probate clerk in the county where the decedent lived for guidance on obtaining certified letters or court orders.
• Consider obtaining a court order directing the bank to release funds (this is common when there is a dispute about the will, competing claimants, or uncertainty about authority).
• If necessary, consult a probate attorney to file a motion in probate court to resolve the issue.

Common questions people ask

Do I need a probate case to close the bank account?

Not always. If the estate is small and the bank accepts a small‑estate affidavit or the account was payable‑on‑death (POD) to named beneficiaries, you may be able to close the account without formal probate. However, many banks will insist on probate court letters before disbursing funds. When in doubt, start a probate case or ask the probate clerk what paperwork banks in that county usually accept.

How many certified death certificates should I get?

Get several (commonly 5–12) because banks, title companies, and government agencies each want their own certified copy.

What about taxes?

You may need an EIN for the estate and must file any required federal and state tax returns for the decedent and the estate. Keep tax records; banks sometimes require proof of tax filings before releasing funds for distribution.

Helpful Hints

• Contact the bank early — ask the branch or estate unit for a written list of required documents (some banks publish their probate checklist).
• Obtain multiple certified death certificates from the county or state vital records office right away.
• Use a separate estate (fiduciary) account to collect decedent funds and pay estate expenses — don’t mingle estate funds with personal funds.
• Get an EIN for the estate from the IRS before you ask the bank to open or rename an account in the estate’s name.
• Keep a running ledger and save all receipts; banks will produce a closing ledger but you should maintain your own accounting for beneficiaries and the court.
• If beneficiaries request an accounting, provide the bank’s final statement plus your receipts showing how funds were spent and distributed.
• If the bank insists on court letters and you don’t have them, contact the probate court clerk about obtaining certified letters quickly — many clerks can help you understand local rules and fees.
• If a bank stalls or a beneficiary objects, consider talking with a Texas probate attorney — a short consultation can clarify whether you need a court order.

Quick list of useful Texas resources

• Texas Statutes (official) — https://statutes.capitol.texas.gov/
• Texas Courts — Probate information — https://www.txcourts.gov/programs-services/probate/
• IRS — Apply for an EIN online (needed for estate accounts) — https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

If you want, tell me whether a will exists, the approximate size of the estate, and whether you already have letters from the probate court — I can outline the specific documents the bank will likely demand and the next practical steps in that scenario.