How to Close Bank Accounts After Death in Texas

KairaApril 13, 20267 min readTexas

How to Close Bank Accounts After Death in Texas

How you close a bank account after a death in Texas depends entirely on how the account was set up. Joint accounts with survivorship rights transfer immediately. Pay-on-death (POD) accounts pass to the named beneficiary without probate. Sole accounts require either letters testamentary from probate or a small estate affidavit. Knowing the account type before you walk into the bank saves you weeks of frustration.

This guide covers bank accounts, safe deposit boxes, vehicle titles, real property, and the other financial assets you will need to handle.

Bank Account Types and What Happens to Each

Joint Accounts with Right of Survivorship

If the deceased held a joint account with right of survivorship, the surviving account holder gains full ownership of the account immediately upon death. No probate is needed.

Under Texas Estates Code Chapter 112, community property with right of survivorship is a specific designation that married couples can elect. Both spouses must agree in writing. When one spouse dies, the surviving spouse automatically owns the entire account.

What to do: Bring a certified death certificate to the bank. The bank will remove the deceased's name and the account continues as the survivor's sole account.

Pay-on-Death (POD) Accounts

Texas Estates Code Chapter 113 governs POD accounts (also called "in trust for" or Totten trust accounts). These accounts name a beneficiary who receives the funds when the account holder dies, bypassing probate entirely.

What to do: The named beneficiary presents a certified death certificate and valid photo ID to the bank. The bank releases the funds directly to the beneficiary.

Key detail: POD designations override a will. If the will says the account goes to Person A but the POD designation names Person B, Person B gets the money.

Sole Accounts (No Joint Owner, No Beneficiary)

Sole accounts with no POD designation must go through probate or an alternative process:

Method	When to Use	Requirements
Letters testamentary	Deceased had a will	File will for probate in county court; court issues letters authorizing you to act on behalf of the estate
Letters of administration	Deceased had no will	Apply to county court to be appointed administrator
Small estate affidavit	Estate value is small, no will contest	Total assets (excluding homestead and exempt property) do not exceed $75,000; assets must exceed known liabilities; 30-day wait after death; filed under Texas Estates Code Section 205.001
Muniment of title	Will exists, no debts owed	Probate the will as a muniment of title - no executor appointed, but the will is recognized by the court

What to bring to the bank: Letters testamentary or letters of administration, a certified death certificate, and your photo ID. The bank will provide their own forms for closing the account and distributing the funds to the estate.

Community Property Considerations

Texas is a community property state. This means property acquired during the marriage generally belongs equally to both spouses, regardless of whose name is on the account.

When one spouse dies:

The surviving spouse already owns their one-half of community property
The deceased spouse's one-half passes according to their will, or if there is no will, according to Texas intestacy law (Texas Estates Code Chapter 201)
If the deceased had children from a prior relationship, the surviving spouse keeps their half of community property, but the deceased's half goes to those children (not to the surviving spouse)

Separate property - what each spouse owned before marriage or received as a gift or inheritance during marriage - follows different rules. The surviving spouse gets one-third of separate personal property and a life estate in one-third of separate real property; the rest goes to the children.

This can get complicated quickly. If there are children from prior relationships, consult a probate attorney.

Safe Deposit Box Access

Texas Estates Code Sections 151.001 through 151.003 govern access to a deceased person's safe deposit box.

Without a Court Order (Section 151.003)

The following people can examine (not remove) the contents of a safe deposit box in the presence of a bank officer:

Surviving spouse
Parent of the deceased
Adult descendant of the deceased
Person named as executor in the deceased's will

The bank officer must be present and document what is in the box. The purpose is limited to looking for:

A will or codicil
A deed to a burial plot
An insurance policy naming the bank examiner as beneficiary

If a will is found, it must be delivered to the county clerk. Insurance policies may be removed if the person examining the box is the named beneficiary.

With a Court Order (Sections 151.001-151.002)

To fully access and remove the contents of a safe deposit box, you generally need:

Letters testamentary or letters of administration
A court order authorizing access

The bank will inventory the contents in the presence of the executor or administrator.

Vehicle Title Transfer

Texas has several processes for transferring vehicle titles after a death, depending on whether the title has a beneficiary designation:

Beneficiary Designation (Form VTR-121)

If the deceased designated a beneficiary on the vehicle title using Form VTR-121 (Right of Survivorship/Beneficiary Designation):

The beneficiary must survive the deceased by at least 120 hours (5 days)
The beneficiary has 180 days from the date of death to apply for a new title
Bring Form VTR-121, the death certificate, your ID, and the title to your county tax office
Fee: approximately $28-$33

Joint Ownership with Right of Survivorship (Form VTR-122)

If the vehicle was jointly owned with right of survivorship, the surviving owner presents:

The existing title
A certified death certificate
Application for new title
Fee: approximately $28-$33

Heirship Transfer (Form VTR-262)

If there is no beneficiary designation or joint ownership, heirs can transfer a vehicle using an Affidavit of Heirship for a Motor Vehicle (Form VTR-262):

Must be signed by two disinterested witnesses (people who do not inherit from the estate)
Notarized
Filed at the county tax office with the death certificate
Fee: approximately $28-$33

Inherited Vehicle Tax Exemption

Texas provides a tax exemption for vehicles acquired by inheritance. You do not owe motor vehicle sales tax on a vehicle you inherit, whether through a will, intestacy, or beneficiary designation. The transfer is taxed at $0, though title and registration fees still apply.

Real Property Transfers

Transferring real estate after a death in Texas depends on how the property was held and whether there is a will.

With a Will

Probate with independent executor: The executor named in the will can convey property using an executor's deed
Muniment of title: If the deceased had a will and no unpaid debts, the will can be probated as a muniment of title under Texas Estates Code Section 257.001. The court order recognizing the will is recorded in the county deed records, and the beneficiary becomes the recognized owner.

Without a Will

If there is no will, the heirs must file a Determination of Heirship proceeding under Texas Estates Code Chapter 202. This court proceeding:

Establishes who the legal heirs are
Appoints an attorney ad litem to represent unknown heirs
Results in a court order that can be recorded in the deed records

This is more time-consuming and expensive than probating a will. It is one of the strongest arguments for having a will in Texas.

Transfer-on-Death (TOD) Deeds

Texas Estates Code Chapter 114 authorizes transfer-on-death deeds, which allow real property to pass to a named beneficiary at death without probate.

Key rules:

The deed must be recorded in the county deed records before the grantor's death to be effective
The beneficiary must survive the grantor by at least 120 hours (5 days)
The TOD deed does not affect the owner's rights during their lifetime - they can sell, mortgage, or revoke the deed at any time
The beneficiary takes the property subject to any existing liens or encumbrances

If you are doing end-of-life planning, a TOD deed is one of the simplest ways to transfer real property outside of probate. See our End-of-Life Planning Checklist for Texas Residents for more.

MERP - Medicaid Estate Recovery

Texas operates a Medicaid Estate Recovery Program (MERP) that can file claims against a deceased Medicaid recipient's estate. Key facts:

MERP claims are Class 7 in the priority order of estate claims (Texas Estates Code Section 355.102)
The state can seek recovery from probate assets for Medicaid benefits paid after age 55
Hardship exemption: If the estate consists primarily of a homestead valued at less than $100,000, heirs may apply for a hardship waiver
MERP cannot recover from non-probate assets (life insurance, POD accounts, joint accounts with survivorship, retirement accounts with beneficiaries)

The best defense against MERP is to ensure major assets pass outside of probate through beneficiary designations, TOD deeds, and survivorship agreements.

Unclaimed Property

If you cannot locate an account or believe the deceased may have had accounts you do not know about, check:

Texas Comptroller's Unclaimed Property Division: comptroller.texas.gov/programs/unclaimed-property
Search by the deceased's name for any unclaimed funds from dormant bank accounts, insurance policies, utility deposits, or other financial assets
There is no deadline to claim - unclaimed property is held indefinitely by the state

Account Closing Checklist

Use this checklist to track what needs to be handled:

Frequently Asked Questions

Can I use the deceased's debit card to pay for immediate expenses?

No. Using a deceased person's bank account without legal authority (letters testamentary, joint ownership, or POD designation) is unauthorized and potentially illegal. Even if you are the sole heir, wait until you have proper documentation.

How long does it take to close accounts?

Joint and POD accounts can often be handled in a single bank visit. Sole accounts requiring probate can take weeks to months depending on court schedules. A small estate affidavit, when it qualifies, is typically faster than full probate.

What happens to automatic bill payments?

They will continue until the account is closed or the bank is notified of the death. Contact the bank promptly and also notify each company that was receiving automatic payments.

Do I need to pay the deceased's debts from their bank accounts?

Debts are the responsibility of the estate, not the heirs personally (with limited exceptions for community property debts in Texas). As executor or administrator, you pay debts in the priority order established by Texas Estates Code Section 355.102, using estate assets.

What if I cannot find the will?

Check the safe deposit box (using the supervised examination process under Section 151.003), the deceased's home, their attorney's office, and the county clerk's office where wills are sometimes filed for safekeeping. If no will is found, the estate is handled under Texas intestacy law.

What to Do Next

Kaira organizes every step for your state — deadlines, forms, and next actions — so nothing gets missed. See how it works.

Related guides:

End-of-Life Planning Checklist for Texas Residents - set up beneficiary designations and TOD deeds now
Social Security Survivor Benefits in Texas - claim the benefits you are owed
Funeral and Burial Laws in Texas - understand your rights with funeral homes

Disclaimer: This article provides general legal information about handling financial accounts after a death in Texas. It is not legal advice. Estate situations vary, and community property rules add complexity. Consult a probate attorney for guidance specific to your circumstances.

Sources: Texas Estates Code Chapters 112, 113, 114, 151, 201, 202, 205, 257, 355; Texas Transportation Code; Texas Tax Code; Texas Health and Human Services MERP guidelines.

Planning ahead

How to Close Bank Accounts After Death in Texas