What are the final steps an executor takes to close out the estate bank account in Ontario?

Before closing the estate's bank account, an estate trustee generally needs to confirm every estate obligation has actually been paid or accounted for, including outstanding debts, funeral costs, taxes, having addressed a CRA clearance certificate, and the trustee's own approved compensation, since once the account is closed and funds are distributed, undoing a mistake becomes much harder. A final accounting to beneficiaries, whether informal or formal, is also a normal step before the last funds are paid out and the account is emptied.

Once the trustee is satisfied nothing further is owing, the remaining balance is distributed according to the will or intestacy rules, any final distribution letters or releases are obtained from beneficiaries, and the account itself can then be closed with the bank, which will typically want to see the estate certificate and confirmation of who is authorized to give closing instructions.

It's worth keeping a small buffer or holdback in mind before closing the account entirely if there's any chance of a late-arriving bill or a tax reassessment - reopening a closed account or chasing beneficiaries for a small shortfall afterward is far more work than holding back a modest amount briefly at the end.