Closing Accounts

Overview

After Sunset discovers financial accounts - or after you add accounts you already knew about - you can request that Sunset handle the closure and transfer of funds from those accounts. This is where Sunset's service becomes truly valuable: we manage the complex paperwork, coordinate with financial institutions, track progress, and ultimately get the funds transferred to your estate bank account.

The account closure process involves significant paperwork, institution-specific requirements, and careful coordination. Sunset handles this entire process on your behalf, preparing the necessary forms, submitting documentation to institutions, following up on requests, and keeping you informed throughout.

​How Account Closure Works

The Step-by-Step Process

Once you've reviewed the accounts discovered by Sunset (or accounts you've added manually), you can initiate closure:

​Step 1: Request Closure

From your Sunset dashboard:

This signals to Sunset that you want us to begin the formal closure process for that account.

You can request closure for multiple accounts simultaneously, or handle them one at a time - whatever makes sense for your situation.

​Step 2: Full Verification Begins

Once you request closure, we initiate direct contact with the financial institution:

What happens:

What this reveals:

This verification step confirms what was indicated in the initial search results and provides complete, official information.

Example: Initial search showed "Checking account at Wells Fargo, approximate balance $8,500." After requesting closure and full verification, Wells Fargo confirmed: Account #****6789, current balance $8,847.23, no beneficiaries, requires death certificate and letters testamentary.

​Step 3: Paperwork and Forms Preparation

This is where Sunset's service truly shines. Each financial institution has its own forms, procedures, and requirements for closing accounts and releasing funds after death.

What Sunset handles:

Common forms we prepare:

Each institution is different - a closure at Chase Bank requires different paperwork than closure at Fidelity, which is different from Northwestern Mutual life insurance.

Example: For a 401(k) account at Fidelity, Sunset prepared: (1) beneficiary claim form, (2) tax withholding election form, (3) direct rollover authorization to estate IRA, (4) certified death certificate cover letter, (5) letters testamentary cover letter, and (6) distribution request form. That's six different documents for one account - and we handled all of them.

​Step 4: Review and Signature

Sunset prepares all the paperwork, but you need to review and sign the forms:

How this works:

We typically highlight signature lines and provide clear instructions:

For some institutions, we can facilitate electronic signatures through secure platforms like DocuSign. For others, institutions require original "wet signatures" in ink.

Important: You should always review forms before signing to ensure:

If anything looks incorrect or confusing, contact Sunset before signing and we'll clarify or correct the forms.

Step 5: Submission to Institution

After you return signed forms to Sunset:

What we do:

We ensure everything is submitted correctly the first time to avoid delays from incomplete or incorrect packages.

Step 6: Institution Processing

After submission, the financial institution processes the closure request:

What happens:

Timeline varies by institution:

Some institutions are faster, some slower. Large national banks often have streamlined processes, while smaller institutions or complex account types take longer.

Step 7: Follow-Up and Problem Resolution

Institutions don't always process things smoothly on the first try:

Common issues that arise:

What Sunset does:

You don't have to make these calls or manage these issues - that's our job.

Example: After submitting closure documents to State Farm for a life insurance policy, they requested an additional form that wasn't mentioned initially. Sunset obtained the form, prepared it, sent it to the client for signature, resubmitted to State Farm, and followed up to confirm receipt - all without the client needing to contact State Farm directly.

Step 8: Fund Distribution

Once the institution approves the closure:

How funds transfer:

You'll receive notification when:

The estate account shows all incoming transfers, so you can track exactly what came from where.

Step 9: Confirmation and Completion

After funds arrive:

What happens:

You can view the complete history of the closure process by clicking on that institution in your Sunset dashboard.

Tracking Status Throughout the Process

One of Sunset's most valuable features is transparent status tracking:

How to check status:

Status indicators you might see:

Discovery Phase:

Closure Requested:

Paperwork Phase:

Processing Phase:

Completion:

Each status update includes:

Timeline Expectations by Account Type

Different account types have different closure timelines:

Bank Accounts (Checking, Savings, CDs):

Fastest closures: Simple accounts with clear ownership and no complications Slowest closures: Accounts with co-owners, beneficiaries, or complex titling

Example: Chase checking account with clear sole ownership closed in 10 days from request to funds in estate account.

Retirement Accounts (401(k), IRA, Pension):

Retirement accounts take longer because:

Example: Fidelity IRA took 5 weeks from closure request to distribution, including a required rollover to estate IRA before final distribution.

Life Insurance Policies:

Life insurance is most variable because:

Example: Northwestern Mutual term policy paid out in 3 weeks. Smaller regional carrier took 7 weeks for a whole life policy.

Investment Accounts (Brokerage, Mutual Funds):

Investment accounts require:

Complex or Problem Accounts: Some accounts take significantly longer:

What Paperwork Looks Like

To give you a sense of what Sunset handles, here are real examples:

Example 1: Simple Bank Account Closure

For a checking account at Bank of America:

Sunset prepared all forms, sent for signature, submitted complete package to Bank of America.

Example 2: Retirement Account Distribution

For a 401(k) at employer's plan administrator:

Sunset prepared all forms, coordinated medallion signature guarantee, submitted everything to plan administrator, followed up multiple times to ensure processing.

Example 3: Life Insurance Claim

For a term life policy at MetLife:

Sunset completed all claimant portions, coordinated with physician's office for their portion, submitted complete claim, followed up on processing.

Without Sunset, you would need to:

With Sunset, you:

Common Issues During Closure

Even with expert handling, problems sometimes arise:

Institution Claims Missing Documents

What happens: You submit everything, but institution says they didn't receive key documents.

How Sunset handles: We maintain proof of submission (tracking numbers, fax confirmations, email receipts). We promptly resubmit with confirmation of prior submission and escalate if institution continues claiming missing documents.

Additional Forms Required Mid-Process

What happens: Halfway through processing, institution requests additional forms not initially mentioned.

How Sunset handles: We quickly obtain, prepare, and submit the additional forms, minimizing delay. We update you on what's needed and why.

Beneficiary Designations Discovered

What happens: Account has beneficiary designations that weren't in initial records, changing who receives funds.

How Sunset handles: We inform you of the beneficiary designation, explain how it affects distribution, coordinate with designated beneficiaries if they're also working with Sunset, or provide guidance if they're not.

Medallion Signature Guarantee Required

What happens: Institution requires a medallion signature guarantee (similar to notarization but more stringent, typically obtained at a bank).

How Sunset handles: We identify this requirement early, provide instructions on obtaining the medallion guarantee, prepare all forms that need the guarantee, and coordinate submission once obtained.

Institution Processing Delays

What happens: Institution is slow to process, repeatedly asks for "more time," or seems to lose track of the request.

How Sunset handles: Regular follow-up calls, escalation to supervisors, leveraging relationships with institution contacts, and keeping you informed of delays and our efforts to accelerate.

Forms Completed Incorrectly

What happens: Institution rejects forms because something was filled out wrong (could be their mistake in telling us requirements, or an error on our part).

How Sunset handles: We immediately correct the forms and resubmit, taking responsibility and ensuring the error doesn't delay you unnecessarily.

Multiple Accounts at Same Institution

If Sunset discovers multiple accounts at the same institution:

How it works:

Example: Discovered at Fidelity: one 401(k), one rollover IRA, and one Roth IRA. Submitted coordinated closure request covering all three accounts, with specific distribution instructions for each based on tax treatment.

Estate Bank Account as Destination

All funds from closed accounts transfer to the estate bank account Sunset helps you establish:

Why this matters:

The estate account shows:

You can use the estate account like a normal checking account:

Communicating with You Throughout

Sunset keeps you informed at every stage:

Email notifications for:

Dashboard updates: Log in anytime to see current status of every account in the closure process.

Proactive communication: If issues arise or delays occur, we notify you promptly with explanation and what we're doing about it.

Responsive to questions: Email [email protected] anytime with questions about a specific closure: "What's the status of the Fidelity account?" "Why is Chase taking so long?" "What does this status mean?"

We respond with specific information about that account's current situation.

Your Role in the Process

While Sunset handles the heavy lifting, you have important responsibilities:

What you must do:

What you don't have to do:

After Closures Complete

Once all desired accounts are closed and funds transferred:

What you'll have:

Next steps typically include:

Common Questions About Account Closure

"How long does the whole process take?"

Most straightforward closures complete in 4-8 weeks from initial request to funds in estate account. Complex accounts or multiple accounts can take 2-4 months. We provide specific timelines for each institution.

"Can I close accounts myself instead of using Sunset?"

Yes, you can handle closures independently if you prefer. However, most families find Sunset's service invaluable given the complexity of paperwork and coordination required across multiple institutions.

"What if I only want to close some accounts, not all?"

That's fine. Close the accounts you want closed, leave others for now, or handle others yourself. You're in complete control.

"Do I have to use the estate bank account?"

To use Sunset's closure service, yes - the estate account is where funds transfer. This ensures clean accounting and consolidation of estate assets.

"What does this cost?"

Nothing. Sunset's services are 100% free. We're paid by our banking partner (the provider of the estate account). You pay no fees for closure assistance.

"Can Sunset close accounts I knew about, not just ones you discovered?"

Absolutely. You can add any accounts to your Sunset dashboard and request closure assistance for those as well.

"What if an institution won't work with Sunset?"

Rare, but if it happens, we provide you with all the forms and instructions to handle that closure yourself. Most institutions readily work with us.

"What if I don't have letters testamentary yet?"

We can help prepare probate documents to establish your authority. Once you have court documents, we proceed with closures.

Need Help with Account Closures?

If you have questions about the closure process, want to check status on a specific account, need clarification on paperwork you've been sent, or encounter any issues:

Email [email protected] with:

Or log in to your Sunset account at hellosunset.com to check real-time status on all accounts in the closure process.

We're here to make the complex process of closing accounts and transferring funds as simple and stress-free as possible during an already difficult time.