Detailed answer — what to do to close an estate bank account and obtain the required closing statement

When someone dies, the person appointed by the probate court to wind up the decedent’s affairs (the personal representative, sometimes called an executor or administrator) is responsible for collecting assets, paying valid debts and expenses, and distributing what remains to the heirs or beneficiaries. Closing an estate bank account is one of the final administrative steps. Below are the typical, step-by-step actions under Tennessee probate practice and the sources you will rely on.

Step 1 — Confirm who has authority to act

Only an authorized fiduciary may legally access and close an estate bank account. Authority usually comes from one of the following:

• A will that names an executor plus a certified copy of the probate court’s Letters Testamentary;
• If there is no will, a court‑appointed administrator with Letters of Administration;
• A small‑estate or other summary procedure that the law allows (different paperwork).

Contact the probate court that handled the estate if you are unsure who holds authority. For general information about probate procedure in Tennessee, see the Tennessee Courts probate resources: https://www.tncourts.gov/programs/probate. Tennessee statutes governing probate are in Tennessee Code Annotated Title 30 (Probate): https://www.capitol.tn.gov/.

Step 2 — Gather the documents the bank will require

The bank will typically ask to see:

• A certified copy of the death certificate;
• Original or certified Letters Testamentary or Letters of Administration from the probate court (or a certified copy);
• Personal identification for the representative (driver’s license, etc.);
• Court order or final distribution order if the account is to be distributed according to a court-approved settlement.

Banks have internal policies, so call the branch or the bank’s fiduciary department before your visit to confirm the exact documents and whether they will accept certified copies or need originals.

Step 3 — Make sure estate liabilities and expenses are paid or provided for

Before distributing funds or closing the account, the personal representative must make a reasonable effort to pay known debts, taxes, funeral expenses and administrative costs, or otherwise reserve funds to cover them. In many cases you will prepare an estate accounting or final accounting showing receipts and disbursements for the probate court to review and approve. Tennessee probate statutes and local court rules govern filing requirements and the timing for final settlement; contact the probate court or review Title 30 of the Tennessee Code for details: https://www.capitol.tn.gov/.

Step 4 — Prepare a closing statement (final account) for the estate

A closing statement (sometimes called a final account, final accounting, or settlement) shows what the fiduciary collected and paid, administrative expenses, and the proposed distribution to beneficiaries. A proper closing statement typically includes:

• An opening balance (funds the estate owned when administration started);
• All receipts into the estate (bank interest, sale of property, other collections);
• All expenditures (funeral, creditors’ payments, taxes, attorney fees, commissions, filing fees);
• List of distributions to beneficiaries with dates and receipts (or proposed distributions if court approval is required);
• A closing balance of $0 if everything is distributed, or the remaining balance and where it will be deposited or reserved.

The closing statement must be accurate and dated. The probate court may require the personal representative to file the closing statement and supporting receipts before the court will enter a final order discharging the representative’s duties.

Step 5 — File the closing documents with the probate court (if required)

If the estate was opened in probate court and final settlement is required, file the final account or petition for settlement with the probate court. The court will review the accounting, may require notices to creditors or beneficiaries, and can schedule a hearing. Once the court approves the final account and issues an order of distribution or an order discharging the personal representative, present that order to the bank to close the account and distribute funds.

Step 6 — Work with the bank to close the account and obtain bank statements or a bank closing statement

When you are ready to close the estate account, bring the bank the documents from Steps 1–5. The bank will typically provide:

• An official final bank statement showing the account’s activity and final balance;
• A written confirmation from the bank that the account was closed; and
• Copies of any checks or wire transfer confirmations showing distributions to beneficiaries or to other estate accounts.

Keep the bank’s final statement and all receipts. They serve as supporting exhibits for the closing statement you filed with the court (or that you give to beneficiaries if court approval is not required).

Step 7 — Get receipts/releases from beneficiaries

After you distribute funds from the estate account, obtain written receipts or releases from beneficiaries acknowledging they received their share. These releases help protect the personal representative from future claims and are commonly required by probate courts when closing an estate.

Timing and common issues

How long the process takes depends on the size and complexity of the estate, claims by creditors, tax matters and whether the probate court requires a formal final settlement hearing. Banks often will not permit closing or distribution until the fiduciary provides court documentation or a statement of authority. Expect to keep detailed records for at least the two to five years a court or tax authority might audit.

For official Tennessee probate law and to confirm filing procedures, consult Tennessee Code Annotated (Title 30) and your county probate court’s forms and local rules. Tennessee court and probate resources: https://www.tncourts.gov/programs/probate. The Tennessee General Assembly site is a place to look up statutes: https://www.capitol.tn.gov/.

When you may not need court approval

Small estates or non-probate assets (payable-on-death bank accounts, joint accounts, accounts with beneficiary designations) often pass outside probate and may be closed with a bank using a simple affidavit and a death certificate. Tennessee has procedures for small estates; review the probate court’s guidance or statutes in Title 30 for small‑estate procedures and consult the court or a lawyer before relying on a summary procedure.

Helpful hints — practical tips to make closing the estate bank account smoother

• Call the bank first: ask which documents they require to close an estate account and whether they need originals or accept certified copies.
• Get certified copies of the death certificate from the funeral home or the county health department — banks and courts often require certified copies.
• Obtain certified Letters Testamentary or Letters of Administration from the probate court early in the process.
• Keep a master file: maintain scanned copies of every check, receipt, bank statement and court document. These support the final accounting and protect you if questions arise.
• Prepare the final account in a clear, itemized format. Use bank statements as the basis for every entry and attach receipts for all disbursements.
• If creditors remain, consider setting aside a reasonable reserve rather than making full distributions immediately.
• Obtain written releases or receipts from beneficiaries after you distribute funds.
• If the estate is complex (business interests, out‑of‑state assets, disputed claims or tax issues), consult a probate attorney — errors can lead to personal liability for the personal representative.
• Confirm whether Tennessee’s statutes require filing a final account in your county’s probate court — local rules can vary.
• Keep records for several years after closing; some claims and audits can arise later.

Disclaimer: This article explains general practices under Tennessee probate law to help you understand the process. It is educational information only and not legal advice. For advice about a specific situation, contact a licensed Tennessee probate attorney or the local probate court.