A letter of instruction to a bank is a signed, usually notarized document telling the bank exactly what to do with an account — close it, retitle it, or disburse the balance to a specific person or account. It is the bank’s own form, not an estate planning document, and the bank will not act on it alone: it has to be paired with proof that you have legal authority over the account. If a bank has asked you for a “letter of instruction,” this is what they mean.
When banks ask for one
Banks use the phrase in three common situations: closing the account of someone who died, retitling an existing account into the name of your revocable living trust, or removing a deceased co-owner from an account that survives. In each, the letter does the same job — it gives the bank written, signed direction, so the person who moved the money can point to your instruction rather than their own judgment. That’s why it’s nearly always notarized. The notarization isn’t required by Arizona law; it’s the bank protecting itself against a forged signature.
Ask for the bank’s form before you write anything. Most institutions have their own template, and a letter drafted from scratch is usually sent back. Start by calling the bank’s estate or survivor services line.
What the bank will want alongside it
The letter alone is never enough. Expect to provide:
- A certified copy of the death certificate — not a photocopy. Order several; every institution wants its own.
- Proof of your authority, which depends on how the account was titled and how the estate is being handled:
- Letters of Appointment from the Arizona probate court, if a personal representative has been appointed.
- A certification of trust, if you’re acting as successor trustee. Arizona lets you provide this short summary instead of the whole trust document (A.R.S. § 14-11013) — it confirms the trust exists, who the acting trustee is, and what powers that trustee holds.
- A small estate affidavit, if the estate qualifies. Arizona allows collection of up to $200,000 in personal property by affidavit, at least 30 days after the death.
- Nothing beyond ID, if you were already a joint owner or the named payable-on-death beneficiary — those accounts pass outside probate.
- Photo ID for whoever signs, plus account numbers and receiving account details.
If there are multiple beneficiaries or co-fiduciaries, most banks want all of them to sign. Sorting that out in advance saves a round trip.
This is not the estate planning letter of instruction
Two completely different documents share the name, and the confusion costs people time:
- The bank’s version — transactional, notarized, addressed to a financial institution, moves money now.
- The estate planning version — informal, no signing formalities, addressed to your family, no legal force. It tells them where everything is and what you wanted. It could never be used to close an account.
If you’re writing the second kind, start here: Letter of Instruction: What to Include (With Arizona Examples).
Related questions
Does it have to be notarized?
Almost always — but as bank policy, not Arizona law. Institutions require notarization because they’re releasing funds in reliance on a signature, and a notary acknowledgment shifts the risk of forgery. Some banks accept an in-branch signature verified by a banker instead. Ask before you pay for a notary.
Can I use a letter of instruction instead of probate?
No. A letter of instruction is a direction, not a source of authority. It works only when you already have authority from somewhere else — a court appointment, a trust, a valid small estate affidavit, or your status as a surviving joint owner or named beneficiary. If none of those applies, the letter won’t get you access to the account and you likely need to open a probate. See Arizona probate for when that’s required and the small estate affidavit for when it isn’t.
The bank wants one to move my account into my trust. Is that normal?
Yes, and it’s a good sign — it means you’re actually funding the trust rather than just signing it. Retitling accounts is the step most people skip. A trust is like an empty box: if you don’t put anything inside it, it can’t hold or protect anything. See funding a trust.
Need help getting an institution to release an account?
Banks reject paperwork for small reasons, and families usually find out three weeks later. If you’re administering a trust or an estate in Arizona and an institution keeps sending you back for more documents, we can tell you what they actually need. Book a free consultation or call (480) 805-4357.
