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Detailed Answer — step‑by‑step under Vermont practice

1. Confirm your authority to act for the estate.

   Before a bank will allow you to touch an estate account, it will usually want proof that you are the estate’s legal representative. In Vermont that proof is typically either:

   • a certified copy of Letters Testamentary (if there is a will) or
   • Letters of Administration (if there is no will), both issued by the Probate Division of the Vermont Superior Court.

   If the estate is very small, Vermont law and practice may permit collection of assets by an heir or beneficiary using a small‑estate affidavit instead of formal probate. See Vermont probate rules and Title 14 (Probate Procedure) for details: https://legislature.vermont.gov/statutes/title/14 and general court information at https://www.vermontjudiciary.org/.

2. Gather the documents the bank will require.

   Commonly requested items include:

   • Certified copy of your Letters (probate document).
   • Original death certificate (or certified copy).
   • Your photo ID.
   • Estate taxpayer identification number (EIN) if the account will remain open while you settle the estate. Apply online at the IRS: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online.
   • Completed bank forms for estate accounts or fiduciary signature cards.

   If the decedent’s account was held jointly with right of survivorship, the bank may permit survivor transfer without probate after seeing a death certificate and ID.

3. Inventory, pay debts, and keep records.

   Before distributing funds you should:

   • Prepare an inventory of estate assets (including the bank account balance) and a list of known creditors.
   • Use estate funds to pay valid debts, funeral expenses, and expenses of administration.
   • Retain bank statements and receipts—these are needed for the final accounting you will file with the Probate Court.

   Vermont probate practice expects a full and accurate final account when you seek to close the estate. See Title 14 for the probate accounting and settlement framework: https://legislature.vermont.gov/statutes/title/14.

4. Close or transfer the bank account when distributions are ready.

   Two common ways to conclude the estate bank account:

   • If you have remaining funds and beneficiaries’ shares are clear, distribute funds according to the will or intestacy rules and obtain signed receipts or releases from beneficiaries. Then close the account and keep the bank’s final statement and copies of distribution receipts.
   • If distributions require court approval (disputes, complex estates, or when requested by beneficiaries), file a petition for final settlement with the Probate Division. After the court approves the accounting and issues an order allowing distribution and discharge of the fiduciary, present the court order to the bank to close the account.

   Some banks will not release funds until they receive either a certified Letters and beneficiary releases or a specific court order approving the final distribution.

5. Obtain the required closing statement.

   The phrase “closing statement” can refer to two items:

   1. The bank’s final account statement showing a zero balance (or final disbursement). Ask the bank to provide a signed and dated final statement on bank letterhead showing closing balance and transaction history used for closing.
   2. The Probate Court’s order approving the fiduciary’s final account and discharging the fiduciary (sometimes called an Order of Settlement and Discharge or Decree of Final Distribution). This is the official court closing document that many third parties will accept. You obtain this by filing your final account and petition with the Probate Division and obtaining the court’s signed order.

   Keep both documents: the bank’s final statement for financial proof and the court’s order as legal authority clearing you from further fiduciary liability.

6. File final tax returns and complete recordkeeping.

   Before and after closing the account, confirm whether the estate needs to file final federal and Vermont income tax returns and any estate tax returns. Preserve receipts, bank statements, distribution receipts, and the court order; the Probate Court and tax authorities may request them.

   Vermont tax guidance: https://tax.vermont.gov.

7. If beneficiaries or the bank object.

   If a beneficiary disputes the accounting or a bank refuses to act, you may need the court to resolve the dispute. File a petition in Probate asking the court to approve the accounting, compel distribution, or resolve title issues. The Probate Division can enter an order directing the bank to pay out or clarifying rights.

Hypothetical example (illustrative)

Mary is named executor in John’s will and obtains Letters Testamentary from the Vermont Probate Division. John’s estate has one bank account with $40,000. Mary gets a certified copy of her Letters and a certified copy of John’s death certificate, opens an estate EIN for tax purposes, notifies the bank, pays the funeral bill and a creditor, prepares a final accounting for the Probate Court, gets beneficiary releases, closes the account at the bank and receives a final bank statement showing zero balance, then files for the court’s final order approving her account and discharging her as executor. Mary keeps the bank’s closing statement and the court’s order in the estate file.

Helpful Hints

• Contact the local Probate Division early to confirm required forms, local rules, and whether a small‑estate procedure might avoid full probate: https://www.vermontjudiciary.org/.
• Bring originals and one certified copy of Letters to the bank. Banks usually require certified court copies, not photocopies.
• Ask the bank in advance what specific items it needs for closing (some banks require beneficiary releases, others accept a court order).
• Get an estate EIN before you deposit or move funds that will remain in the estate’s name; do not use the decedent’s Social Security number for ongoing estate financial activity. Apply: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online.
• Keep meticulous receipts and a simple spreadsheet of every transaction; that saves time preparing the final account the court will review.
• If a beneficiary asks for an informal accounting before you file with the court, provide a clear written summary of receipts, disbursements, and proposed distributions to reduce disputes.
• When in doubt about complex claims, contested distributions, or tax questions, consult a Vermont probate attorney — contested matters are best handled with counsel.
• See Vermont probate statutes and rules for governing law and detailed procedural requirements: https://legislature.vermont.gov/statutes/title/14.