In Virginia, the executor or administrator of the deceased individual’s estate is responsible for closing bank accounts.
State laws govern this process. A few important steps help ensure the proper and legal handling of the deceased’s assets.
Identify accounts
The first step in closing bank accounts during estate administration is to identify all of the deceased individual’s bank accounts. This includes checking accounts, savings accounts and any other accounts in their name.
Notify financial institutions
The executor or administrator must notify the banks of the account holder’s death. The banks may be in state or out of state. The notification process typically involves providing a copy of the death certificate and any other required documentation to the bank.
Freeze accounts
After notification, the bank will usually freeze the deceased individual’s accounts to prevent any unauthorized transactions. This step is important to protect the assets of the estate until proper distribution to the heirs occurs.
Collect funds
After account freezing, the executor or administrator can begin collecting the funds held in the accounts. This may involve closing the accounts and transferring the funds to an estate account.
Close accounts
After the executor or administrator collects the funds, this person can proceed with closing the bank accounts. This typically involves submitting a formal request to the bank to close the accounts and distributing the remaining funds to the heirs of the estate.
By adhering to this general process, the executor or administrator can ensure the lawful closing of bank accounts after someone dies.
