What a conservator can and cannot do with bank accounts
A conservator can close a bank account, but only if the court order that created the conservatorship explicitly grants that power. Most conservatorship orders do grant it — closing accounts is a routine part of managing someone's finances — but the power is not automatic. The conservator must act within the scope of the court order. If the order says the conservator can manage accounts but not close them, closing one is a violation of that order and can result in the conservator being removed and held liable for damages.
The account holder — the person under conservatorship — cannot close the account themselves once a conservatorship is in place, even if they have mental capacity to do so. The conservator's authority overrides theirs. This is true whether the account is a checking account, savings account, money market account, or any other deposit account at a bank or credit union.
Before closing an account, the conservator must also consider whether the account is needed for the conservatee's living expenses, medical care, or other necessities. A conservator has a legal duty to act in the conservatee's best interest, not their own. Closing an account to benefit the conservator personally, or to hide assets, is a breach of that duty and can result in criminal charges.
Key Takeaways
- A conservator can close a bank account only if the court order granting the conservatorship specifically authorizes account closure or general financial management.
- The conservator must notify the bank in writing and provide a copy of the court order or letters of conservatorship as proof of authority.
- The conservator has a legal duty to act in the conservatee's best interest, so closing an account must not harm the conservatee's ability to pay for living expenses or medical care.
- If the conservatee has direct deposit set up for Social Security or other income, the conservator should arrange a new account or payment method before closing the old one.
- The conservator may need to file a final accounting with the court showing what happened to the money from the closed account.
How to close an account as a conservator
Contact the bank in person or by phone and tell them you are a conservator and want to close the account. The bank will ask for proof of your authority. Bring or send a certified copy of the letters of conservatorship (also called letters of authority or certificate of conservatorship) issued by the court. This document shows the bank that you have legal power over the account. Some banks will also accept a certified copy of the court order that created the conservatorship.
The bank will verify the document and may ask you to sign a form authorizing the closure. Ask the bank what happens to any remaining balance — most banks will issue a check to the conservatee's name, or transfer the funds to another account you designate. Do not ask the bank to make the check payable to you personally. That is a red flag for fraud and the bank may refuse. The money belongs to the conservatee, and the check or transfer should reflect that.
Get written confirmation from the bank that the account is closed. Keep this confirmation along with your copy of the letters of conservatorship and any other documents related to the closure. You will need these records if the court later asks you to account for the conservatee's money.
What to do if the account receives direct deposit
If the conservatee's Social Security, pension, or paycheck is deposited directly into the account you are closing, you must set up a new account or payment method before you close the old one. Contact the Social Security Administration, the pension provider, or the employer and ask them to change the deposit account. This usually takes one to two weeks to process.
Do not close the account until the new deposit method is active and you have received at least one deposit to the new account. If you close the account before the switch is complete, a deposit may be rejected and the conservatee may lose access to income they need for food, medicine, or rent.
If a deposit arrives after the account is closed, the bank will return it to the sender. The sender will then try to re-deposit it, which causes a delay. During that delay, the conservatee has no access to the money. This can create a hardship and may prompt the court to question your judgment as conservator.
Court reporting requirements after closing an account
Depending on your state and the terms of the conservatorship, you may be required to file an accounting with the court showing what happened to the money from the closed account. An accounting is a detailed report of all money you received and spent on behalf of the conservatee. It must show the balance in the closed account at the time of closure and where that money went — whether it was transferred to another account, paid out for expenses, or held in some other form.
Some states require accountings every year. Others require them only when the conservatorship ends or when the court orders one. Check your state's probate code or ask the court clerk what your reporting obligations are. If you fail to file a required accounting, the court can hold you in contempt, remove you as conservator, or order you to repay money you cannot account for.
Keep all bank statements, cancelled checks, and receipts related to the closed account for at least three to five years. These documents prove that you handled the money properly and can protect you if the conservatee, a family member, or the court later questions how you managed the account.
What happens if the conservatorship order does not authorize account closure
If your court order does not explicitly give you the power to close accounts, you must ask the court for permission before you do so. File a petition with the court explaining why you want to close the account and what you plan to do with the money. The court will review your request and either grant or deny it. If the court grants it, you will receive a new order or an amended order that authorizes the closure.
Closing an account without court permission when you do not have that power is a violation of your fiduciary duty. The conservatee, or someone acting on their behalf, can sue you for damages. The court can also remove you as conservator and order you to restore the money to a new account. In some cases, closing an account without authority can result in criminal charges for theft or embezzlement, even if you did not spend the money for yourself.
Protecting the conservatee's interests when closing an account
Before you close an account, make sure the conservatee has another way to access money for daily needs. If you are consolidating multiple accounts into one, close the old accounts only after the new account is open and funded. If you are closing the only account the conservatee has, open a new one first and transfer the balance.
Consider whether the conservatee might need to write checks or use a debit card. If so, do not close the account without setting up a replacement account with check-writing or card privileges. Some conservators make the mistake of closing an account and then holding all the conservatee's money in a personal account or investment account. This is not allowed. The conservatee's money must be kept separate from yours and must be in an account or investment that is clearly in the conservatee's name.
If the conservatee is in a care facility and the account is used to pay the facility's bills, coordinate the closure with the facility's billing department. Make sure they know which account to bill after the old one closes, and give them at least two weeks' notice so they can update their records.
Frequently Asked Questions
Can the conservatee close their own bank account if they disagree with the conservator?
No. Once a conservatorship is in place, the conservatee loses the legal power to close accounts, even if they have the mental capacity to do so. The conservator's authority is exclusive. If the conservatee believes the conservator is acting improperly, they can petition the court to remove the conservator or modify the conservatorship order, but they cannot unilaterally close an account.
What if the conservator closes an account and spends the money on themselves?
That is theft or embezzlement. The conservatee or their family can report it to the police and to the court. The conservator can be criminally prosecuted and civilly sued for the amount stolen plus damages. The court can also remove the conservator and order them to repay the money immediately. If the conservator cannot repay, a judgment lien can be placed on their personal property.
Do I need the conservatee's signature to close their bank account?
No. Your letters of conservatorship are your proof of authority. The bank does not need the conservatee's signature. However, some banks may ask the conservatee to be present for identification purposes. Call the bank ahead of time and ask what they require.
Can a conservator close a joint account that the conservatee shares with someone else?
Not without the other account holder's permission or a court order. A joint account is owned by both parties, and the other owner has rights to the account. The conservator can only close the conservatee's share or transfer it to a separate account. If the other owner refuses to cooperate, the conservator may need to ask the court for an order allowing the closure or transfer.
What if the bank refuses to close the account even though I have letters of conservatorship?
Ask the bank manager why they are refusing. Some banks have internal policies that require additional documentation or verification. Provide whatever they ask for. If they still refuse without a valid reason, you can file a complaint with your state's banking regulator or ask the court to issue an order compelling the bank to close the account. In most cases, the bank will cooperate once they have verified your authority.