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Closing Accounts

K
Written by Kaela Worthen
Updated this week

Closing Accounts and Transferring Funds

Overview

After Sunset discovers financial accounts—or after you add accounts you already knew about—you can use Sunset to close those accounts and transfer the funds. This is where Sunset's service becomes truly valuable: we provide you with everything you need to manage the complex paperwork, communicate with financial institutions, track your progress, and ultimately get funds transferred to your estate bank account for safekeeping and distribution.

The account closure process involves significant paperwork, institution-specific requirements, and careful coordination. Sunset equips you with the right documents, pre-filled forms, contact information, and tracking tools so you can navigate this process smoothly and at your own pace. You remain in control of every step, deciding when and how to move forward with each institution.


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 begin the closure process for any institution you're ready to address.


Step 1: Select an Institution to Close

From your Sunset dashboard:

  1. Log in to your account at hellosunset.com

  2. View the list of discovered accounts

  3. Click on a specific institution (for example, "Chase Bank" or "Fidelity Investments")

  4. Review the account details

  5. Select "Close and Transfer Funds" to begin

You can work on multiple institutions simultaneously or handle them one at a time—whatever makes sense for your situation and schedule. There's no pressure to move faster than you're comfortable with.


Step 2: Tell Sunset Where You Are in the Process

When you select an institution to close, Sunset will ask how far along you are:

  • Haven't started yet – Sunset will guide you from the very beginning

  • Already notified the company – Sunset will help you with the next steps, including tracking, form filling, and fund transfers

  • Waiting on forms or a response – Sunset can help you upload, fill out, and respond to any documents you've received

Even if you've already begun working with an institution before using Sunset, we can help you manage the remaining steps, keep everything organized, and ensure nothing falls through the cracks.


Step 3: Prepare Your Document Packet

Before contacting the financial institution, you'll need to assemble the documents they'll require. Sunset makes this easy by generating a complete document packet for you.

What's included in your Sunset document packet:

  • Certified copy of the death certificate – Most institutions require this as proof of death

  • Legal probate authority – Letters testamentary, letters of administration, or other court documents establishing your authority over the estate

  • Copy of your government-issued ID – Proves you are who you claim to be

  • Cover sheet with instructions – A professional cover letter addressed to the financial institution, explaining what's enclosed and providing clear instructions to close the account and mail any checks to Sunset's address

The cover sheet is specifically formatted for the institution and tells them exactly what action to take. This helps ensure your request is routed to the right department and processed correctly.

To generate your document packet:

  1. From the institution's page in your dashboard, click "Prepare Documents"

  2. Review the packet to ensure all information is accurate

  3. Download or send directly from Sunset

Having this packet ready before you contact the institution helps you present a complete, professional request from the start—which can significantly reduce back-and-forth delays.


Step 4: Notify the Financial Institution

Once your document packet is ready, it's time to contact the financial institution to formally request account closure.

How to notify the institution:

Sunset provides you with the best available contact information for each institution, which may include:

  • Email address – Often the fastest method for initial contact

  • Phone number – Useful for confirming receipt or asking questions

  • Fax number – Many institutions still accept (and prefer) fax for sensitive documents

  • Mailing address – For institutions that require physical mail

  • Online contact forms – Some institutions have dedicated portals

  • Branch locations – If you prefer in-person communication

  • Scheduling tools – Some institutions offer appointment scheduling, which Sunset will display if available

Our recommendation: We generally recommend starting with the contact method most likely to create a paper trail—email or fax—so you have documentation of when you submitted your request.

Sending via fax from Sunset:

If the institution accepts fax, Sunset makes this simple. Your cover letter is already formatted for fax transmission. With a single click in the app, you can send your complete document packet directly to the institution's fax number. No need for a physical fax machine or third-party service.

What to include in your notification:

  • Your complete document packet (death certificate, probate authority, your ID, and cover sheet)

  • A clear request to close the account

  • Instructions to mail any checks to Sunset's address:

    Sunset
    310 South Main Street, Suite 1125
    Salt Lake City, UT 84101


Step 5: Wait for the Institution's Response

After you submit your notification and document packet, the financial institution will review everything. This review period can take anywhere from a few days to several weeks, depending on the institution and the complexity of the account.

What typically happens during this time:

  • The institution verifies the death certificate

  • They confirm your legal authority over the estate

  • They review the account for any beneficiary designations, holds, or special requirements

  • They determine what additional information (if any) they need

Timeline expectations:

  • Simple bank accounts: 1–3 weeks

  • Retirement accounts: 2–6 weeks (more complex due to tax implications)

  • Life insurance policies: 2–8 weeks (varies significantly by carrier)

  • Investment accounts: 2–4 weeks

Some institutions are faster than others. Large national banks often have streamlined processes, while smaller institutions or complex account types may take longer. Sunset helps speed up this process by ensuring you deliver all required documents from the start, reducing the likelihood of delays due to missing information.


Step 6: Respond to Additional Requests

It's common for financial institutions to request additional information or send forms that need to be completed before they can release funds. These requests may come directly to you or to Sunset.

If the institution sends documents to Sunset:

  • We scan the documents and upload them to your dashboard

  • You'll receive an email notification that a document is waiting for your review

  • Log in to your Sunset account to view the document and take action

If the institution sends documents directly to you:

  • Log in to Sunset and upload the document

  • This keeps everything organized in one place

  • Sunset can help you fill out the form and send your response when you're ready

How Sunset helps with form filling:

Sunset can pre-fill PDF forms using the information you've already provided and the research we've conducted on your behalf. This saves you time and reduces the chance of errors.

  • Forms are pre-populated with accurate information

  • You review everything before sending or signing

  • You can edit any pre-filled content as needed

  • Nothing is sent until you approve it

If signatures are required:

Sunset is integrated with DocuSign, so you can:

  • Request electronic signatures easily

  • Arrange for notarization if the institution requires it

  • Complete the signing process without printing, scanning, or mailing

After you've completed the form:

Use Sunset to send your response back to the institution via your preferred method (fax, email, or mail). We'll keep a copy in your dashboard for your records.


Step 7: Receive Your Funds

Once the institution approves your closure request, they'll release the funds. How you receive those funds depends on the type of account.

Bank Accounts and Life Insurance

Most banks and life insurance companies will mail a paper check. Your cover sheet instructs them to mail checks to Sunset's address:

Sunset
310 South Main Street, Suite 1125
Salt Lake City, UT 84101

When checks arrive at Sunset:

  • We deposit the check into your estate bank account

  • Funds appear in your account, clearly labeled with the source institution

  • You receive notification that the deposit has been made

If a check is mailed directly to you:

  • Log in to Sunset

  • Upload an image of the front and back of the check

  • We'll process a mobile deposit into your estate bank account

  • There is no dollar limit on mobile check deposits

  • All deposits are FDIC insured up to $3 million

Retirement Accounts and Investment Accounts

Retirement funds (401(k)s, IRAs, pensions) and brokerage accounts often work differently. Instead of simply mailing a check, these institutions may require a rollover to transfer the assets.

What this typically means:

  • The institution may ask you to open an account with them (such as an inherited IRA or estate brokerage account)

  • Assets are then rolled into that new account

  • You, as the executor or administrator, can then decide when and how to close out investment positions

Why this is common:

Rollovers allow the estate to maintain control over the timing of liquidating investments. This can be important for:

  • Tax planning purposes

  • Avoiding forced sales during unfavorable market conditions

  • Managing the distribution of specific assets to beneficiaries

Our recommendation:

  1. Open the required account at the institution if necessary

  2. Complete the rollover as instructed

  3. Once assets are in the rollover account, wire the funds to your FDIC-insured estate bank account through Sunset

This approach consolidates all estate funds in one secure, insured location, making it easier to:

  • Track and itemize all estate money

  • Pay debts and expenses

  • Distribute to heirs using Sunset's tools

Sunset can help you fill out and send any forms required for the rollover process. Just upload the institution's forms to your dashboard, and we'll assist with completion and submission.


Step 8: Track Your Progress

One of Sunset's most valuable features is transparent status tracking for every account and asset.

How to check status:

  1. Log in to your Sunset account at hellosunset.com

  2. View your list of accounts

  3. Click on any specific institution

  4. See detailed status information for that account

Status indicators you might see:

Getting Started:

  • "Ready to Begin" – You haven't started the closure process yet

  • "Documents Prepared" – Your packet is ready to send

Notification Phase:

  • "Institution Notified" – You've sent your initial notification

  • "Awaiting Response" – Waiting for the institution to reply

Forms and Documentation:

  • "Form Received" – The institution sent a form that needs your attention

  • "Form Completed" – You've filled out and submitted the requested form

  • "Additional Information Sent" – You've responded to a follow-up request

Fund Transfer:

  • "Closure Approved" – Institution has approved the account closure

  • "Check Mailed" – Funds are on the way

  • "Funds Deposited" – Money has arrived in your estate bank account

  • "Rollover in Progress" – For retirement/investment accounts requiring rollover

Each status update includes:

  • Date of the status change

  • What it means

  • What action you can take next

  • Any documents associated with that step


Setting Up Your Estate Bank Account

Before you begin closing accounts and receiving funds, you'll need an estate bank account—a dedicated account to receive, hold, and eventually distribute the estate's money.

Sunset can help you set this up:

  1. Generate an Estate EIN – Sunset is an approved IRS partner and can generate an Employer Identification Number (EIN) for the estate through the IRS API. This EIN is required to open a bank account in the estate's name.

  2. Open an FDIC-Insured Estate Bank Account – Through Sunset, you can open a bank account specifically for the estate. This account is FDIC insured up to $3 million.

Why use a dedicated estate bank account:

  • Consolidation – All estate funds flow into one place, making tracking simple

  • Clear accounting – Every deposit is labeled with its source, so you know exactly where money came from

  • Separation – Estate funds stay separate from your personal finances

  • Protection – FDIC insurance provides security for the estate's assets

  • Distribution – When it's time to distribute to heirs, everything is organized and documented


What Paperwork Looks Like

To give you a sense of what you'll encounter, here are examples of typical documentation requirements:

Example 1: Simple Bank Account Closure

For a checking account at a major bank:

  • Cover sheet with instructions (1 page)

  • Certified death certificate

  • Letters testamentary or letters of administration

  • Copy of your government-issued ID

  • Account closure request form (if required by the institution, typically 1–2 pages)

Sunset prepares your packet with the cover sheet and organizes your documents. If the bank sends an additional form, we help you fill it out and send it back.

Example 2: Retirement Account Distribution

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

  • Beneficiary claim form (3–5 pages)

  • Distribution election form (2–3 pages)

  • Tax withholding election (1–2 pages)

  • Rollover authorization (if rolling to an estate IRA, 2–4 pages)

  • Medallion signature guarantee (if required, obtained in person at a bank)

Sunset pre-fills these forms with your information. If a medallion signature guarantee is required, we provide instructions on how to obtain one. You review and sign using DocuSign, then we help you submit the complete package.

Example 3: Life Insurance Claim

For a term life policy:

  • Claim form (4–8 pages with detailed questions)

  • Claimant statement (2–3 pages)

  • Death certificate

  • Proof of authority (letters testamentary)

  • Direct deposit or check mailing instructions

Sunset completes the claimant portions, you review for accuracy, sign electronically, and we help you submit to the carrier.


Common Situations and How to Handle Them

Institution Claims They Didn't Receive Documents

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

How to handle it:

  • If you sent via Sunset's fax feature, you'll have a transmission confirmation

  • Resend the documents with a note referencing your original submission date

  • Use Sunset to track when documents were sent and to whom

Additional Forms Required Mid-Process

What happens: The institution requests forms that weren't mentioned initially.

How to handle it:

  • Upload the new forms to Sunset

  • We'll help you fill them out quickly

  • Submit your response and continue tracking progress

Beneficiary Designations Are Discovered

What happens: The account has a beneficiary designation that affects who receives the funds.

How to handle it:

  • Beneficiary designations typically override the will

  • The designated beneficiary may need to file their own claim

  • Sunset can help you understand what this means for the estate

  • If the beneficiary is also using Sunset, coordination is simple

Medallion Signature Guarantee Required

What happens: Some institutions require a medallion signature guarantee—a special certification more stringent than notarization.

How to handle it:

  • Visit a bank or credit union that participates in a medallion program

  • Bring the forms that need the guarantee

  • Once obtained, upload to Sunset and we'll help you submit

Institution Is Slow to Respond

What happens: Weeks pass without a response.

How to handle it:

  • Use the contact information in Sunset to follow up directly

  • Reference your original submission date and tracking information

  • Ask for a status update and estimated timeline

  • Document the conversation in Sunset for your records


Multiple Accounts at the Same Institution

If Sunset discovers multiple accounts at the same institution (for example, a checking account and a savings account at the same bank):

  • Each account appears separately in your dashboard

  • You can address all accounts simultaneously or one at a time

  • Your document packet can reference all accounts at that institution

  • Track progress for each account individually

Example: You discover three accounts at Fidelity—a 401(k), a rollover IRA, and a Roth IRA. You can send one notification covering all three accounts, then track the closure and distribution of each separately based on their individual requirements.


Timeline Expectations by Account Type

Different account types typically take different amounts of time to close:

Bank Accounts (Checking, Savings, CDs)

  • Document preparation: Same day with Sunset

  • Institution processing: 1–3 weeks

  • Total time: 2–4 weeks typically

Faster closures: Simple accounts with clear sole ownership
Slower closures: Accounts with co-owners, beneficiaries, or complex titling

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

  • Document preparation: Same day with Sunset

  • Institution processing: 2–6 weeks

  • Total time: 3–7 weeks typically

Retirement accounts take longer because:

  • Tax implications require careful documentation

  • Beneficiary rules are complex

  • Multiple forms are often required

  • Rollovers add additional steps

Life Insurance Policies

  • Document preparation: Same day with Sunset

  • Institution processing: 2–8 weeks (highly variable)

  • Total time: 3–9 weeks typically

Life insurance varies widely because:

  • Carriers have different processing speeds

  • Some require additional verification

  • Claim forms can be detailed

  • Newer policies may have investigation periods

Investment Accounts (Brokerage, Mutual Funds)

  • Document preparation: Same day with Sunset

  • Institution processing: 2–4 weeks

  • Total time: 3–5 weeks typically

Investment accounts may require:

  • Rollover to an estate account

  • Liquidation of holdings

  • Transfer of cash proceeds


Communicating with You Throughout

Sunset keeps you informed at every stage:

Email notifications for:

  • Document packet ready for review

  • New forms received from an institution

  • Status changes on any account

  • Checks received at Sunset

  • Funds deposited to your estate account

  • Action needed from you

Dashboard updates:

Log in anytime to see the current status of every account you're working on. Each account shows its history, current status, and next steps.

Questions?

Email [email protected] with:

  • The deceased's name

  • Which institution or account you're asking about

  • Your specific question

We're here to help you understand the process and use Sunset's tools effectively.


Your Role in the Process

Sunset provides the tools, documents, and guidance—you're in control of the process and the pace.

What you do:

  • Select which institutions you're ready to address

  • Review and approve document packets before sending

  • Send notifications to institutions using Sunset's contact info and tools

  • Review and sign forms before submission

  • Upload any documents you receive directly from institutions

  • Follow up with institutions as needed

  • Deposit checks that arrive at your address

What Sunset provides:

  • Complete document packets with professional cover sheets

  • Best available contact information for each institution

  • One-click fax sending

  • Form pre-filling with your information

  • DocuSign integration for signatures and notarization

  • Status tracking for every account

  • Mobile check deposit

  • Estate EIN generation

  • FDIC-insured estate bank account

  • Distribution tools for heirs


After Closures Complete

Once all desired accounts are closed and funds transferred:

What you'll have:

  • All estate funds consolidated in your estate bank account

  • Complete documentation of every closure in your Sunset dashboard

  • Clear record of amounts received from each source

  • Ability to pay estate expenses from the estate account

  • Tools to distribute to heirs when appropriate

Next steps typically include:

  1. Paying any outstanding debts or expenses from the estate account

  2. Finalizing estate accounting

  3. Distributing to beneficiaries per the will or intestacy law

  4. Closing the estate bank account once distribution is complete

Sunset's distribution tools help you manage payments to heirs, keeping everything documented and organized.


Common Questions About Account Closure

"How long does the whole process take?"

Most straightforward closures complete in 4–8 weeks from initial notification to funds in your estate account. Complex accounts, multiple accounts, or unresponsive institutions can take 2–4 months. Sunset provides timeline estimates for each institution based on typical processing times.

"Can I close accounts myself without using Sunset's tools?"

Yes, you can handle closures entirely on your own if you prefer. However, most families find Sunset's document preparation, form filling, and tracking tools invaluable given the complexity of coordinating multiple institutions.

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

That's completely fine. Address the accounts you're ready to close, and leave others for later. You work at your own pace.

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

Using the Sunset estate bank account keeps everything consolidated and makes tracking and distribution much simpler. If checks are mailed to Sunset's address, they'll be deposited into this account. You can also deposit checks mailed to you via mobile deposit.

"What does this cost?"

Sunset is 100% free to use. There are no fees for document preparation, form filling, fax sending, status tracking, or any other features.

"Can Sunset help with accounts I knew about, not just ones discovered through search?"

Absolutely. You can add any accounts to your Sunset dashboard and use all the same tools for closure assistance.

"What if an institution won't accept documents sent through Sunset?"

Rare, but if it happens, you can download your document packet and submit it through whatever method the institution requires. All the same documents are available to you.

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

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

"What if I started the process before using Sunset?"

No problem. Tell Sunset where you are in the process, and we'll help you with the remaining steps—tracking, form filling, sending responses, and receiving funds.


Need Help?

If you have questions about the closure process, need help understanding a form you received, or want guidance on next steps:

Include:

  • The deceased's name

  • Which institution or account you're asking about

  • Your specific question

Or log in to your Sunset account at hellosunset.com to check real-time status on all accounts and access your documents.

We're here to make the complex process of closing accounts and transferring funds as manageable as possible during an already difficult time. You're not alone in this—Sunset gives you the tools and support to handle everything at your own pace.

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