How Do I Close a Deceased Person's Bank Account in BC?

Closing a bank account is often one of the first practical jobs an executor faces. It can feel urgent, but it is rarely a single step. Banks want proof of the death and proof of your authority, and the right order of steps depends on how the account was held.

This article explains how the process generally works in British Columbia, what to gather first, how probate fits in, and what to think about for joint accounts and automatic payments. Every bank has its own rules, so treat this as a map rather than a script.

This article covers the law of British Columbia.

Start with the bank, not the paperwork

Contact each bank or credit union where the person held accounts and tell them about the death. Most will explain what they need, and many will freeze the account or flag it so that no new transactions are processed. Ask whether the account is held alone, jointly, or with a named beneficiary, since that affects who can deal with it.

Ask for a list of everything held there, including chequing and savings accounts, term deposits, credit cards, lines of credit and safe deposit boxes. Ask for balances as of the date of death, because you will need them later for the estate's records.

Documents banks usually ask for

Requirements differ between institutions, but executors are commonly asked for items like these:

• The death certificate or other proof of death
• The original will, or a copy if the bank allows it
• Your own government photo identification
• Proof of your authority, which may be the will naming you as executor or a court grant if one has been issued
• Account numbers, if you have them
• Any forms the bank requires, such as an estate claim or account closing request

A bank may also ask for a new estate account to be opened so that money can be collected and bills paid in an orderly way. Ask whether that is available and what it costs, then keep records of every deposit and payment.

Is probate needed to close the account?

It depends. Some institutions release small balances on the strength of the will and an indemnity, while others require a court grant before releasing larger amounts. Policies vary, so ask each bank directly rather than assuming.

If probate is needed, there is a cost. No probate fee is payable if the estate is worth $25,000 or less. Above that, the fee is $6 for every $1,000 or part of $1,000 over $25,000, plus $14 for every $1,000 or part of $1,000 over $50,000. The fee is calculated on the gross value of the estate shown in the Statement of Assets, Liabilities and Distribution, and it includes BC real and tangible personal property. Intangible property, which would include bank balances, is counted only if the person was ordinarily resident in BC immediately before death.

If an asset was left out or undervalued, the personal representative must disclose it and pay the difference in the fee.

Joint accounts and automatic payments

A joint account does not always work the way people expect. In many cases the surviving account holder can keep using it, but whether the money belongs to the survivor or to the estate can depend on how the account was set up and why. If the ownership is unclear or family members disagree, speak to a lawyer before moving any money.

Automatic payments need attention too. Review the statements for pre-authorized debits such as utilities, insurance, subscriptions and loan payments, then cancel or redirect them as appropriate. Do not cancel anything tied to a property that still needs insurance or heat while the estate is being settled.

Government deposits need particular care. Service Canada must be told of a death as soon as possible. CPP and OAS are payable for the month of death, and payments issued after that month must be returned, either by the bank returning direct deposits or by a cheque payable to the Receiver General for Canada. For CRA benefits, you can notify the CRA by phone or by mailing Form RC4111, and the CRA asks you to do this as soon as possible to avoid benefit repayment.

What to do next

• Order several copies of the death certificate
• Locate the will and confirm who is named as executor
• List each account and how it was held
• Call each institution and ask exactly what it requires
• Notify Service Canada and the CRA
• Keep a running record of money in and out
• Get legal advice before paying out any funds if debts or tax may be owing

Before you distribute money to beneficiaries, consider the tax side. The legal representative may be personally liable for outstanding tax if assets are distributed without a clearance certificate. A lawyer or accountant can help you sequence the steps.

Frequently asked questions