How to Close Bank Accounts After a Death in Massachusetts
How to Close Bank Accounts After a Death in Massachusetts
The process for closing a bank account after someone dies in Massachusetts depends almost entirely on one thing: how the account was titled. A joint account with survivorship rights can be accessed the same day you present a death certificate. A sole account with no beneficiary designation and a balance over $10,000 may require opening probate first. Before you call any bank, identify what type of account you are dealing with. That single step shapes everything that follows.
Deciding Where to Start: Map Account Types to the Right Path
Massachusetts law creates four distinct paths for bank accounts at death. Each one has a different timeline and a different set of documents.
| Account Type | Path to Access | Probate Required? |
|---|---|---|
| Joint account with right of survivorship | Present death certificate + ID | No |
| POD (payable-on-death) account | Beneficiary presents death certificate + ID | No |
| Sole account, balance $10,000 or under | Wait 30 days, bring death certificate | Usually no |
| Sole account, balance over $10,000 | Obtain Letters of Authority from probate court | Yes |
Start by pulling together every account you can find. Check the decedent's files, recent mail, and prior-year tax returns. Form 1099-INT and 1099-DIV filings show interest and dividend income and will surface accounts you might not know about. Once you have the full list, call each bank and ask: "How is this account titled, and does it have a beneficiary designation?" That answer tells you which path you are on.
Joint Accounts: Immediate Access Under M.G.L. c. 167D, § 3
Massachusetts banks are authorized to receive deposits in the name of two or more persons as joint tenants payable to the survivors. When one joint owner dies, the bank's liability shifts entirely to the surviving owner or owners. The deceased's ownership does not create a probate asset; it extinguishes upon death.
What this means in practice: you can walk into the branch the same day you receive the death certificate, present it along with your own government-issued photo ID, and the bank will typically confirm your access and allow you to maintain the account or close it. Most banks process this same day or the next business day.
A few things worth knowing:
- The surviving owner may maintain the balance exactly as it appeared at the time the joint owner died.
- Interest and dividends continue to accrue for the surviving owner.
- Payment to any survivor discharges the bank's obligation to all parties, including the estate of the deceased.
The joint survivorship path is one of the cleanest in Massachusetts law. There is no waiting period, no court involvement, and no probate filing required.
POD and TOD Accounts: No Probate Needed
A payable-on-death (POD) bank account and a transfer-on-death (TOD) securities account both accomplish the same thing: they pass money directly to a named beneficiary when the account owner dies, outside of the probate estate entirely.
POD accounts are governed by M.G.L. c. 190B, Art. VI, Part 1. The POD designation is a contractual arrangement between the account owner and the bank. It does not need to appear in a will to be valid, and it overrides whatever a will says about that money. When the account owner dies, the named beneficiary presents a certified death certificate and their own photo ID directly to the bank. The bank pays out. That is the entire process.
TOD securities follow the same logic under M.G.L. c. 190B, § 6-309. Registered securities in beneficiary form using a "transfer on death" or "TOD" designation pass to the named beneficiary without probate. The beneficiary contacts the brokerage, presents the death certificate and proof of identity, and the assets transfer.
One Massachusetts-specific clarification: Massachusetts does not recognize TOD deeds for real property. You may see this mentioned in estate planning guides from other states. In Massachusetts, there is no mechanism to attach a transfer-on-death beneficiary to real estate. If someone owned a house in their name alone, that property goes through probate regardless of what they intended.
If you are the named POD or TOD beneficiary and you also need a death certificate, see the process at how to get a death certificate in Massachusetts.
Small Sole Accounts at $10,000 or Under: The Expedited Payment Rule
Massachusetts gives banks a specific tool for handling small individual accounts without requiring the family to open probate first. Under M.G.L. c. 167D, § 12, if the deposit in a sole account does not exceed $10,000 and no executor or administrator has been appointed, the bank may pay the balance to:
- The surviving spouse, or
- If there is no surviving spouse, the closest next of kin
The bank may pay after 30 days from the date of death. You must present a certified death certificate. The payment extinguishes the bank's liability.
Two points about this rule. First, the word "may" is intentional. The statute gives banks permission to make this payment; it does not require them to. Some banks exercise this discretion freely. Others require additional documentation or push you toward probate regardless. Call ahead, explain the situation, and ask specifically whether the bank will honor the M.G.L. c. 167D, § 12 expedited payment for accounts under $10,000.
Second, the $10,000 threshold applies per account, not per estate. If the decedent had two accounts, each with a $6,000 balance, the law looks at each account separately. Both may qualify for expedited payment. If a single account holds $15,000, it does not qualify.
Larger Sole Accounts: How to Obtain Letters of Authority
When a sole account holds more than $10,000 and has no POD beneficiary, you need to go through probate and obtain Letters of Authority before the bank will release funds.
Letters of Authority is the term Massachusetts uses under the Massachusetts Uniform Probate Code (MUPC) for what were previously called Letters Testamentary (if the decedent left a will) or Letters of Administration (if there was no will). The MUPC unified these under one document. The court issues Letters of Authority to the appointed personal representative, confirming their legal authority to manage the estate.
How to get Letters of Authority:
- File a petition with the Probate and Family Court in the county where the decedent lived. For informal probate, the filing fee is $390.
- If the decedent left a will, submit the original will with the petition.
- The court reviews the petition and, if acceptable, appoints you as personal representative.
- The court issues Letters of Authority, typically within a few weeks under informal probate.
Once you have Letters of Authority, bring them to the bank along with the certified death certificate and your own photo ID. The bank will recognize your authority and allow you to manage the account, pay estate debts, and ultimately distribute the remaining funds to beneficiaries.
For a full explanation of informal probate, formal probate, and the MUPC process, see how probate works in Massachusetts.
Retirement Accounts: IRAs and 401(k)s
Retirement accounts with named beneficiaries pass outside of probate entirely, regardless of account size. If the decedent named a specific person (or persons) as beneficiary on their IRA or 401(k), that beneficiary contacts the financial institution directly, presents the death certificate and their own identification, and completes the institution's beneficiary claim form. The assets transfer. No court involvement required.
The situation changes when a retirement account names the estate as beneficiary, or when no beneficiary was named and the account defaults to the estate under the plan documents. In that case, the account becomes a probate asset. The personal representative handles it with Letters of Authority like any other estate account.
A few practical notes:
- Retirement accounts often have their own rollover rules and tax consequences depending on the beneficiary's relationship to the decedent. A surviving spouse has options that other beneficiaries do not.
- Larger institutions have dedicated estate or bereavement departments that handle these transfers regularly. Ask to be transferred to that department rather than working through a general customer service queue.
- Get the account numbers ahead of time if possible. Institutions will need them.
Safe Deposit Boxes
If the decedent was the sole lessee of a safe deposit box, the general rule is that you need a court-appointed personal representative with Letters of Authority to open and empty the box. Banks will not grant access to a third party, regardless of their relationship to the deceased, without legal authority.
If the box had a co-lessee, that person retains access and may continue using the box.
A few additional points under Massachusetts law:
- If safe deposit box rent goes unpaid for one year, the bank may send a notice to the lessee's last known address. If the rent is not paid within 60 days of that notice, the bank may open the box and handle the contents according to M.G.L. c. 167D.
- Box contents that are not claimed eventually transfer to the State Treasurer as unclaimed property under M.G.L. c. 200A. The abandoned property dormancy period applies.
If you suspect there is a will or important documents in a safe deposit box, contact the bank promptly. In some cases, banks will allow limited supervised access specifically to search for a will, even before a personal representative is formally appointed. Ask the bank manager directly what their policy is.
Unclaimed Property on FindMassMoney.gov
If you are not sure whether the decedent had accounts at institutions you have not identified, Massachusetts maintains an unclaimed property database that is worth checking.
Banks and other financial institutions are required to report accounts to the state after three years of no owner contact. Massachusetts is currently holding over $2.4 billion in unclaimed funds. The account may still be there.
Search at FindMassMoney.gov. The process:
- Search the decedent's name.
- If a match appears, file a claim with documentation showing your right to claim (typically death certificate plus proof of your relationship and authority, such as Letters of Authority if you are the personal representative).
- Processing takes approximately 180 days.
There is no time limit on making a claim. Claimants may receive interest in many cases. The governing statute is M.G.L. c. 200A, with regulations at 960 CMR 4.00.
How MassHealth Affects Bank Account Decisions
If the decedent received MassHealth benefits (Massachusetts Medicaid) at any point after age 55, or while residing in a nursing facility, MassHealth has a right to recover the cost of those benefits from the estate. This is called estate recovery, and it is governed by M.G.L. c. 118E, §§ 31-32.
The key distinction for bank accounts: MassHealth estate recovery targets only probate assets. It does not reach assets that pass outside of probate.
- Joint accounts (survivorship passes outside probate): generally not subject to MassHealth recovery.
- POD accounts (pass directly to beneficiary): generally not subject to MassHealth recovery.
- Sole accounts with no POD, going through probate: subject to MassHealth recovery.
If the decedent had sole bank accounts that will pass through probate, the personal representative must notify MassHealth upon appointment under M.G.L. c. 118E, § 32(a). MassHealth then has 60 days after receiving that notice to file its claim in probate court.
One threshold to know: MassHealth applies a $25,000 cost-effectiveness rule. If the total probate estate is $25,000 or under, MassHealth will not pursue recovery. Below that threshold, no notification triggers a collection action.
This is one reason why how accounts are titled matters so much. Deciding early whether assets will go through probate, and structuring accounts with beneficiary designations when possible, directly affects whether MassHealth can make a claim. If you are dealing with an estate that includes significant MassHealth history and probate assets, consult a Massachusetts-licensed attorney before distributing anything.
For estate tax questions on larger estates, see estate and inheritance tax in Massachusetts.
Step-by-Step Checklist
Step 1: Identify all accounts. Check files, recent mail, online banking logins if accessible, and prior-year tax returns. Look for 1099-INT and 1099-DIV forms to surface interest-bearing accounts.
Step 2: Determine account type for each. Call each institution and ask: "How is this account titled, and does it have a POD or beneficiary designation?" Get this confirmed in writing if possible.
Step 3: Obtain 8-12 certified death certificates. You will need one for each institution, and possibly more for probate and other agencies. See how to get a death certificate in Massachusetts.
Step 4: Contact each institution. Ask specifically: "What is your process for accounts of a deceased customer?" Have the account number ready.
Step 5: Handle joint and POD accounts first. Bring the certified death certificate and your photo ID. These can typically be resolved without delay.
Step 6: For sole accounts at $10,000 or under. Wait 30 days from date of death. Bring the death certificate. Ask the bank whether they will make the expedited payment under M.G.L. c. 167D, § 12.
Step 7: For sole accounts over $10,000. Open probate with the Probate and Family Court in the decedent's county of residence. Obtain Letters of Authority. Then approach the bank with Letters, death certificate, and your ID.
Step 8: Search FindMassMoney.gov. Run a search for the decedent's name to check for any accounts already turned over to unclaimed property.
Step 9: Notify MassHealth if applicable. If the estate has probate assets and the decedent received MassHealth benefits, the personal representative must notify MassHealth after being appointed.
Frequently Asked Questions
Can I access a joint bank account immediately after a death in Massachusetts? Yes. Under M.G.L. c. 167D, § 3, the surviving joint owner may access the account as soon as the bank receives a certified death certificate and your photo ID. Most banks process this same day or next business day. There is no waiting period and no probate required.
What if the bank refuses to release funds even for a small account under $10,000? The expedited payment rule under M.G.L. c. 167D, § 12 is discretionary. Banks are permitted to pay but not required to. If a bank refuses, your options are to escalate within the bank, contact the Massachusetts Division of Banks, or open probate and obtain Letters of Authority to compel the release.
Does a will give me authority to access bank accounts? No. A will by itself gives you no legal authority to act. You must be appointed by the court as personal representative and receive Letters of Authority before banks will recognize your authority over sole accounts. Do not assume that being named executor in a will is sufficient; the court appointment is what grants the authority.
Are retirement accounts like IRAs subject to the same rules as regular bank accounts? Not exactly. IRAs and 401(k)s with named beneficiaries pass outside of probate entirely, regardless of size. The beneficiary claims the funds directly from the custodian with a death certificate and proof of identity. No Letters of Authority required. The rules diverge only when the estate is named as beneficiary or no beneficiary was designated, in which case the account goes through probate.
How long does the bank have to process a claim once I provide the required documents? Massachusetts law does not set a specific deadline for banks to process claims after receiving documentation. In practice, joint account access is typically immediate. POD payouts and Letters of Authority transfers usually process within a few business days to two weeks depending on the institution. If a bank is unresponsive after you have provided complete documentation, escalate to their estate services department and, if needed, to the Massachusetts Division of Banks.
What to Do Next
Closing bank accounts is one of dozens of financial and legal tasks that follow a death. You are likely handling these alongside time pressure and decisions you have never faced before.
Kaira organizes every step for your state — deadlines, forms, and next actions — so nothing gets missed. See how it works.
This guide reflects Massachusetts banking and probate laws as of April 2026. Bank procedures vary by institution. For estates with significant assets or MassHealth claims, consult a Massachusetts-licensed attorney.
Sources: M.G.L. c. 167D (Bank Deposits); M.G.L. c. 190B (MUPC, Nonprobate Transfers); M.G.L. c. 200A (Unclaimed Property); M.G.L. c. 118E (MassHealth Estate Recovery); mass.gov