How to Close an Estate Bank Account and Obtain the Required Closing Statement

Short answer: In Wisconsin, the personal representative (executor or administrator) closes an estate bank account after collecting documents, paying valid debts and taxes, distributing assets according to the will or intestacy rules, and filing any required final accounting or petition with the probate court. Banks usually require a certified death certificate plus proof of the representative’s authority (court-issued letters). After distribution, get a written closing statement (final accounting) and beneficiary receipts or a court order approving the final account.

Detailed answer (step-by-step under Wisconsin law and typical practice)

1. Who can close the estate account?

The person with legal authority over the decedent’s estate—commonly called the personal representative, executor, or administrator—may close estate accounts. That authority comes from either the decedent’s will (naming an executor) or a court appointment (letters issued by the probate court). If no one has been appointed, the bank will generally freeze the account until someone obtains legal authority from the court.

2. Documents banks typically require

• Certified copy of the death certificate.
• Court-issued proof of authority (often called Letters Testamentary, Letters of Administration, or similar court document) that identifies the personal representative.
• Photo ID for the personal representative.
• Copy of the will (if probating under a will) and any pertinent court orders.

Because procedures vary by institution, call the bank early and ask for the bank’s checklist for closing an estate account.

3. Reconcile the account and preserve records

Before distributing funds, reconcile deposits and withdrawals. Keep original bank statements, receipts for checks written to pay debts, and invoices for funeral or administration expenses. The final closing statement should reflect every transaction affecting the estate account from opening through distribution.

4. Pay valid debts, taxes, and administration expenses

The representative must identify and pay valid creditor claims, funeral expenses, administration costs, and any required federal or state taxes before making final distributions. In many cases Wisconsin probate practice requires a waiting period to allow creditors to present claims; follow the notice and claims procedures required by the probate court or the bank’s guidance.

5. Distribute remaining funds according to the will or Wisconsin intestacy law

After debts and expenses are paid, distribute the remaining funds to beneficiaries named in the will or, if there is no valid will, according to Wisconsin’s intestacy rules. Document every distribution with beneficiary receipts or signed acknowledgements.

6. Prepare and obtain a closing statement (final accounting)

The closing statement (final accounting) is a document showing opening balance, all income and deposits, all expenses and payments, distributions to beneficiaries, and the closing balance (usually zero after distribution). There are two common ways to finalize this:

• Informally: Provide the bank and beneficiaries with the final accounting plus signed receipts from beneficiaries accepting their distributions. Many banks will accept that package and close the account.
• Formally through the court: File a final account or petition for discharge with the probate court and obtain a court order approving the final account and authorizing final distributions. The court’s order serves as an official closing record and is often accepted by banks and third parties.

7. What the closing statement should include

• Account name and number (estate of [decedent’s name]).
• Reporting period for the account (opening date to closing date).
• Beginning balance, itemized income (interest, proceeds, transfers in), itemized payments (debts, taxes, expenses), and ending balance.
• Record of distributions to beneficiaries (amount, recipient, date, and method—check or transfer).
• Signatures of the personal representative and, if used, acknowledgements signed by beneficiaries receiving distributions.

8. After closing: retain records and handle tax reporting

Keep originals of the final accounting, bank statements, receipts, and beneficiary releases for several years. The estate may need to file federal estate tax returns or income tax returns; keep records in case the IRS or Wisconsin Department of Revenue requests them.

Where to find Wisconsin forms and court guidance

For Wisconsin probate forms, procedures, and local court rules, start with the Wisconsin Judicial Branch website (forms and self-help resources): https://www.wicourts.gov. For statute texts and general statutory guidance, see the Wisconsin Legislature’s statutes page: https://docs.legis.wisconsin.gov/statutes.

When to consult an attorney

Consider hiring an attorney if any of these apply:

• Beneficiaries dispute the will, distributions, or accounting.
• Significant creditor claims exist or unknown creditors may appear.
• Complex assets (business interests, out-of-state property, or contested titles).
• Tax planning or potential estate tax issues.
• The bank or a third party refuses to release funds without a court order.

Example (hypothetical, simple scenario)

Jane is the personal representative for her father’s estate. She obtains certified letters from the county probate court and several certified death certificates. She gives the bank a certified death certificate and a certified copy of the letters. Jane reconciles the estate checking account, pays funeral expenses and two creditor invoices, then prepares a final accounting that shows a zero balance after distributing the remaining money to the two beneficiaries. She obtains signed receipts from the beneficiaries and gives the bank the receipts plus the final accounting. The bank closes the account and issues a written confirmation.

Helpful Hints

• Call the decedent’s bank early and ask for its estate-account checklist.
• Order multiple certified copies of the death certificate—banks and government agencies often require originals.
• Get certified copies of the court letters that show your authority to act.
• Keep a clear, itemized final accounting that matches bank statements and canceled checks.
• Obtain signed releases or receipts from beneficiaries to reduce later disputes.
• If the estate is small, ask the court clerk about simplified or small-estate procedures that may avoid full probate.
• Keep records of how you located and evaluated creditor claims and why you paid or rejected each claim.
• When in doubt, consult a probate attorney—especially for contested matters or complicated tax issues.