Executor Account
Comments
-
Having had experience of opening both an executor account and a personal account to administer estates, I can say the main difference is that the personal account was simpler to open and maintain.
As has already been said, just open a new account in your own name. So long as you keep the estate funds separate to your own money, then there is no issue at all. It's all about keeping clear and visible accounts.0 -
Sorry to sound pedantic but a trustee must never mix funds they hold as a trustee (executor) with their own money. This a breach of their duty as a trustee. It may sound simpler and easier but if something goes wrong then the consequences can be severe. For example if the trustee is suddenly incapacitated, or dies, the funds can become inaccessible for months and recovering them can be costly. That is why solicitors always hold clients money in a client account. It is therefore bad advice to ignore this requirement even though it can be very inconvenient.Having had experience of opening both an executor account and a personal account to administer estates, I can say the main difference is that the personal account was simpler to open and maintain.
As has already been said, just open a new account in your own name. So long as you keep the estate funds separate to your own money, then there is no issue at all. It's all about keeping clear and visible accounts.0 -
We definitely didn't have probate, so there were limits to what we could do with it, obviously not pay any money out because there wasn't anything in it!Can I ask if you opened the 'normal NatWest flagged as an executor' account before you had Probate? In other words, what did NatWest need from you to open that account.
I can't remember what they wanted to see apart from our own ID, but can't have been more than the will itself.
We definitely said we wanted an executors' account. It was only on arrival that we realised all the information we were being given related to their normal 'Select' Current account, and I checked this. They assured us it was fine.
They weren't trouble-free, actually activating the account once we did have funds required several visits to my local branch and they clearly didn't have a clue what was going on. But I don't know that any other bank would have been much better!Signature removed for peace of mind0 -
Keep_pedalling wrote: »An account with your sisters bank would not be based where she lived it can be dealt with at your local branch of that bank. I have an appointment with my nearest Barclays to sort my mothers accounts not the one she always used in a different town.
Sorry, but Savvy_Sue's solution in her situation was to open an account where her parents lived, hence my comment about the location being inconvenient.
I know accounts can be opened in any location and mentioned HSBC and Santander because both my late sister and I have accounts with them.0 -
Flugelhorn wrote: »I opened an exec account before applying for probate, bank opened it same day and was active online was sent card and cheque book in a few days - had had a POA for relatives account at the same bank and bank there myself.Flugelhorn wrote: »RBS seemed to be able to organise it all OK
Thanks for that.
RBS & Barclays are (I think) the only banks I don't have a current account with.0 -
Yorkshireman99 wrote: »Sorry to sound pedantic but a trustee must never mix funds they hold as a trustee (executor) with their own money. This a breach of their duty as a trustee. It may sound simpler and easier but if something goes wrong then the consequences can be severe. For example if the trustee is suddenly incapacitated, or dies, the funds can become inaccessible for months and recovering them can be costly. That is why solicitors always hold clients money in a client account. It is therefore bad advice to ignore this requirement even though it can be very inconvenient.
Read again! I did not say that. I said to keep it separate.
The OP said the other executor was happy with the situation.
Yes, you can be very pedantic at times YM99 ;-)0 -
We definitely didn't have probate, so there were limits to what we could do with it, obviously not pay any money out because there wasn't anything in it!
I can't remember what they wanted to see apart from our own ID, but can't have been more than the will itself.
We definitely said we wanted an executors' account. It was only on arrival that we realised all the information we were being given related to their normal 'Select' Current account, and I checked this. They assured us it was fine.
They weren't trouble-free, actually activating the account once we did have funds required several visits to my local branch and they clearly didn't have a clue what was going on. But I don't know that any other bank would have been much better!
Thanks again. Really useful, and as you say, I suspect local branches of all the banks will be much the same.0 -
You may have missed the point. To meet the requirements of being a trustee the funds MUST be kept entirely separate in an account with the account name such as trustee(s) of X. Opening a separate account in your own name and keeping detailed records does not satisfy the legal requirements AFAIK. If someone can provide definitive proof that it does I shall be happy to concede.Read again! I did not say that. I said to keep it separate.
The OP said the other executor was happy with the situation.
Yes, you can be very pedantic at times YM99 ;-)0 -
Yorkshireman99 wrote: »You may have missed the point. To meet the requirements of being a trustee the funds MUST be kept entirely separate in an account with the account name such as trustee(s) of X. Opening a separate account in your own name and keeping detailed records does not satisfy the legal requirements AFAIK. If someone can provide definitive proof that it does I shall be happy to concede.
With respect to you and to others who have posted, I have searched and been unable to find a definitive answer, which is why I posted this...............
I don't think there is a legal requirement to open an 'Executor' account. Obviously, I need to keep the estate moneys separate, so would like to open an account in my name for that purpose. ........
If you can provide definitive proof of what you say, I would be really grateful.0 -
[FONT=Verdana, sans-serif]I am not aware of any law which would legally prevent an executor mixing estate money with their own if that's the way they choose to go about it.
[/FONT] [FONT=Verdana, sans-serif]Often the estate will be out of pocket to start with, particularly if the 1st instalment of inheritance tax has to be paid before, say, the house can be sold.[/FONT]0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards