Detailed Answer

When a person who held a bank account dies, the account becomes part of the decedent’s estate (unless it is owned jointly or has a payable‑on‑death designation). In Alabama, closing an estate bank account and obtaining the formal closing statement typically involves these coordinated steps: establishing the personal representative’s authority, resolving debts and taxes, preparing a final accounting, obtaining court approval if required, and asking the bank for a closing statement or final ledger.

Step 1 — Confirm what kind of account it is

Look at the account title and bank records to see if the account is:

• Joint with right of survivorship (often passes automatically to the surviving owner);
• Payable‑on‑death (POD) or transfer‑on‑death (TOD) (passes directly to the named beneficiary outside probate); or
• Owned solely by the decedent (usually part of the probate estate and subject to administration).

Step 2 — Get the personal representative’s authority

If the account is part of probate, the bank will require proof that a personal representative (executor or administrator) has authority to act. That typically means presenting certified Letters Testamentary or Letters of Administration issued by the probate court and a certified copy of the decedent’s death certificate. Banks will not accept uncertified copies in many cases.

Step 3 — Inventory and preserve funds

The personal representative should obtain a current bank ledger or statements and take an inventory of estate assets. Estate funds must be preserved to pay creditor claims, taxes, and legitimate estate expenses before distributions to beneficiaries. Alabama law sets out probate procedures and the duties of personal representatives; see Alabama Code Title 43 (Probate of Wills and Administration) for statutory duties and powers relevant to estate administration (Alabama Code, Title 43).

Helpful statutorily organized resources for Alabama probate law are available from the Alabama Legislature and the Administrative Office of Courts: Alabama Code (Title index) and Alabama Judicial System.

Step 4 — Pay debts, expenses, and taxes before closing

Before an estate account is closed and funds distributed, you must pay valid creditor claims, final income taxes, and estate administration expenses. In many administrations the personal representative first pays known debts and then waits for the statutory creditor claim period to expire (or obtains court approval to close if creditors contest). Closing too early can expose the personal representative to personal liability.

Step 5 — Prepare a final accounting and petition for distribution (if probate required)

If the estate is being administered through probate, the personal representative usually prepares a final accounting showing all receipts, disbursements, payment of debts, and proposed distributions. The personal representative files a petition with the probate court asking for approval of the accounting and a court order discharging the representative and authorizing final distributions. Once the court signs the order, the representative can make the distributions and close the estate bank account.

Step 6 — Obtain the bank’s closing statement or final ledger

After the account is closed and funds distributed, ask the bank for a formal closing statement (sometimes called a final account ledger or bank verification) showing:

• Opening balance;
• All deposits and withdrawals;
• Fees charged by the bank; and
• The final balance and confirmation that the account is closed.

Banks usually produce a printed final statement upon request to the personal representative who presents the court order or Letters and a death certificate. Keep the bank closing statement with the estate records and file it with the court if the court requires it for the final accounting.

Alternatives for small or nonprobate situations

If the estate qualifies as a small estate or the account passes by beneficiary designation or joint tenancy, probate may be unnecessary. Alabama has procedures that allow a small estate to be collected and distributed without full administration in some circumstances; check Alabama Code Title 43 and local probate court rules or consult an attorney. If probate is not required, the bank will typically accept the death certificate and beneficiary designation and transfer funds directly to the named payee.

What to do if the bank refuses to close or provide a statement

If a bank refuses, confirm you’ve given the documents it requires (certified Letters, death certificate, photo ID). If the bank alleges conflicting claims, the bank may ask for a court order resolving ownership. In that case, file a petition with the probate court asking for instructions or an order requiring the bank to release funds and provide a closing statement. If the bank charges unjustified fees or refuses valid instructions, consider contacting the bank’s legal or compliance department and, if needed, consult an attorney experienced in Alabama probate law.

Timing and common timelines

There is no one fixed timeline. Commonly, closing an estate account and obtaining a closing statement takes at least the time needed to:

• Obtain Letters (a few days to a few weeks, depending on the court);
• Resolve immediate bills and obligations (weeks to months); and
• Complete the creditor claim period or obtain court approval for final distribution (often several months in a typical administration).

Complex estates, creditor disputes, tax issues, or estate litigation can extend this timeline significantly.

Helpful Hints

• Always obtain certified copies of Letters and the death certificate; banks commonly require certified documents.
• Keep a clear paper trail: bank statements, receipts for payments, funeral bills, tax filings, and communications with the bank.
• Ask the bank in writing for a final ledger or closing statement and keep a copy of that request and the bank’s response.
• If funds must be disbursed to beneficiaries, make distributions only after debts and taxes are handled or the probate court approves distribution.
• Check whether the account had a beneficiary designation (POD/TOD); if so, probate may not be necessary for that account.
• For small estates, ask the probate court clerk about simplified procedures that may allow quicker distribution without full administration.
• If a bank claims conflicting ownership or refuses to follow court documents, file a petition with the probate court asking for instructions or an order directing the bank to close the account and produce a closing statement.
• Consider consulting a probate attorney if the estate is large, creditors or heirs dispute distributions, or taxes and complex assets are involved.

Resources: General probate law in Alabama is available through the Alabama Code (Title 43) and the Alabama Judicial System. See the Alabama Legislature’s legal code index at https://www.legislature.state.al.us/alacode/ and Alabama Judicial System resources at https://judicial.alabama.gov/.

Disclaimer: This article explains general Alabama probate procedures and is for informational purposes only. It is not legal advice and does not create an attorney‑client relationship. For advice tailored to your situation, consult a licensed attorney in Alabama.