How to Close Bank Accounts After Death in Pennsylvania
How to Close Bank Accounts After Death in Pennsylvania
When someone dies in Pennsylvania, their bank accounts are handled differently depending on how the accounts are titled. Joint accounts with right of survivorship transfer immediately. Payable-on-death accounts pass to the named beneficiary. Individual accounts require Letters Testamentary or Letters of Administration from the Register of Wills, though Pennsylvania has a small payment exception for deposits up to $20,000. This guide covers every scenario, with the specific statutes and steps for each.
Step 1: Determine How Each Account Is Titled
Before contacting any bank, gather the most recent statements for every account and check the ownership type. The titling determines what you need to do.
| Account Type | What Happens at Death | What You Need |
|---|---|---|
| Joint with right of survivorship | Surviving owner has immediate access | Certified death certificate |
| Joint between spouses (tenancy by entirety) | Surviving spouse has immediate access; exempt from inheritance tax | Certified death certificate |
| Payable-on-death (POD) | Passes to named beneficiary | Certified death certificate + valid ID |
| Individual (no POD, no joint owner) | Frozen; requires letters from Register of Wills | Letters Testamentary/Administration + death certificate |
| Individual under $20,000 | May be paid to family without letters | Death certificate + funeral bill receipt |
Joint Accounts with Right of Survivorship
Under 20 Pa.C.S. section 6304, the surviving joint owner has immediate access to the full account balance. No probate is needed.
What to do:
- Visit the bank with a certified death certificate and your ID
- Request removal of the deceased's name from the account
- Update the account titling to your name alone
- Consider adding a new POD beneficiary
Inheritance tax note: Joint accounts between spouses are exempt from Pennsylvania inheritance tax. Joint accounts between non-spouses are taxable on the deceased's share. The deceased's share is reported on Schedule F (REV-1509) of the inheritance tax return. See estate and inheritance tax in Pennsylvania.
Payable-on-Death (POD) Accounts
Pennsylvania recognizes POD designations under 20 Pa.C.S. Chapter 63. Funds pass directly to the named beneficiary without probate.
What to do:
- Visit the bank with a certified death certificate and your valid ID
- Provide your Social Security number for tax reporting
- The bank releases the funds to you
Inheritance tax note: POD accounts are still subject to Pennsylvania inheritance tax, even though they bypass probate. The tax rate depends on the beneficiary's relationship to the deceased: 0% for a spouse, 4.5% for a child, 12% for a sibling, 15% for all others.
Small Payment Rule: Up to $20,000 Without Letters
Pennsylvania has a valuable provision that allows banks to release deposits up to $20,000 to eligible family members without requiring Letters Testamentary or Letters of Administration (20 Pa.C.S. section 3101(b)).
How it works:
- The bank may pay up to $20,000 in deposits to eligible family members
- Priority order: surviving spouse, then children, then parents, then siblings
- Typically requires presentation of a funeral bill receipt or funeral director affidavit
- The bank may require a death certificate and identification
Also available without letters:
- Wages and employee benefits up to $10,000 (20 Pa.C.S. section 3101(a))
- Patient care accounts up to $10,000 (20 Pa.C.S. section 3101(c))
- Life insurance proceeds up to $11,000 (20 Pa.C.S. section 3101(d))
Why this matters: For small estates, this provision can eliminate the need for formal probate to access bank funds. If the deceased's total bank deposits are under $20,000 and there are no other probate-requiring assets, you may not need to open a probate case at all.
Individual Accounts Requiring Letters
For individually held accounts above the small payment threshold, you need Letters Testamentary (if there is a will) or Letters of Administration (if no will) from the Register of Wills.
Steps:
- File for probate at the Register of Wills in the county where the deceased lived. See how probate works in Pennsylvania.
- Receive Letters Testamentary or Letters of Administration.
- Order short certificates (certified copies of letters) -- you need one per institution.
- Visit each bank with the short certificate, a certified death certificate, and your ID.
- Open an estate checking account to receive the funds.
- Close the deceased's individual accounts.
What to bring to the bank:
- Short certificate (certified copy of Letters Testamentary or Letters of Administration)
- Certified death certificate
- Your valid government-issued ID
- EIN (Employer Identification Number) for the estate -- obtain from the IRS before visiting the bank
Estate account: Most banks require you to open an estate account to receive the deceased's funds. All estate income and expenses should flow through this account for proper accounting to the Orphans' Court.
Safe Deposit Box Access
Pennsylvania has detailed rules for safe deposit box access after death. These rules are designed to protect inheritance tax interests.
Initial entry (will or cemetery deed only):
- A bank employee must be present
- You may remove only the will or cemetery deed
- The bank files Form REV-487 with the PA Department of Revenue
Full access:
- File Form REV-1845 (Notice of Intent to Enter) with the PA Department of Revenue
- Wait at least 7 days after the notice is delivered
- Enter the box and inventory contents
- Submit Form REV-485 (Safe Deposit Box Inventory) within 20 days of entry
No one may enter a deceased person's safe deposit box -- even a joint renter -- without following this procedure, except for the limited will/cemetery deed removal.
Transfer-on-Death (TOD) Securities
Pennsylvania allows TOD registration for securities (stocks, bonds, mutual funds) under 20 Pa.C.S. Chapter 64. These transfer directly to the named beneficiary without probate.
What to do:
- Contact the brokerage firm or transfer agent
- Provide a certified death certificate and your ID
- Complete the firm's beneficiary claim form
- The securities are re-registered in your name
Inheritance tax note: TOD securities are subject to Pennsylvania inheritance tax at the applicable rate based on your relationship to the deceased.
Unclaimed Property
Search the Pennsylvania Treasury's unclaimed property database at unclaimedproperty.patreasury.gov for any accounts you cannot locate. The state holds over $3.5 billion in unclaimed property, including dormant bank accounts, uncashed checks, forgotten stocks, and insurance proceeds.
Under 20 Pa.C.S. section 3101(e), the State Treasurer can distribute unclaimed property up to $20,000 to eligible heirs if no personal representative exists or 5 or more years have passed since appointment. Contact the Bureau of Unclaimed Property at 800-222-2046.
Timeline for Closing Accounts
| Timeframe | Action |
|---|---|
| First week | Notify banks of the death; do not deposit any incoming checks |
| Week 1-2 | Access joint accounts and POD accounts with death certificate |
| Week 1-4 | Use the $20,000 small payment rule for urgent needs (funeral expenses) |
| Week 2-6 | File for probate and receive Letters Testamentary/Administration |
| Week 6+ | Close individual accounts using short certificates |
| Within 9 months | Report all accounts on inheritance tax return (REV-1500) |
Common Mistakes to Avoid
Depositing the deceased's Social Security check. If a Social Security payment arrives after death, do not deposit it. SSA will reclaim the funds. Contact the bank to return the payment.
Not reporting POD and TOD accounts on the inheritance tax return. These bypass probate but are still taxable in Pennsylvania. Failing to report them can result in penalties and interest.
Forgetting to check for unclaimed property. Banks turn dormant accounts over to the state. Always search the PA Treasury database.
Using the deceased's accounts before appointment. Until you have Letters from the Register of Wills, you have no legal authority over individually held accounts. Unauthorized transactions can expose you to personal liability.
What to Do Next
Closing bank accounts is one part of the broader estate administration process. For the full sequence, see the complete guide to what to do when someone dies in Pennsylvania. For the probate filing process, see how probate works in Pennsylvania.
Kaira organizes every step for your state -- deadlines, forms, and next actions -- so nothing gets missed. See how it works.
This guide was researched using Pennsylvania statutes current as of April 2026. Bank policies vary by institution. For questions about specific accounts or inheritance tax treatment, consult a Pennsylvania-licensed attorney.
Sources: 20 Pa.C.S. sections 3101, 6304 (PEF Code); 20 Pa.C.S. Chapters 63, 64; 72 P.S. section 9111 (Inheritance Tax); 61 Pa. Code Chapter 93 (Safe Deposit Boxes); patreasury.gov