Executors' Bank Account - how & when to open

Yorkshireman99

Thank you. Come back if you need any more help as things progress. There is seldom anything new under the sun!:)

ThemeOne

Brighty wrote: »

I found the only reason i needed to open an executors account was for 1 or 2 cheques received payable to 'the estate of***' or 'executor of***', just refunds for fairly minimal amounts, think it was car insurance and something else, £200 total.

The only way i could cash them was to open an executor account. Was straight forward to do, did it in branch at my fathers bank, account opened and cheques paid in. I then had to wait a few weeks for the cheque book to arrive to i could write myself a cheque to empty the account then close it.

I also had a cheque like that, but when I took it into Halifax and asked about an executor account they said it probably wasn't worth bothering unless I was expecting loads more similar cheques, and let me pay it into my own account.

CHlHlRO

I am the sole beneficiary of my mother's estate. Probate takes bloody ages—I can't even complete the forms yet because I'm waiting for information to put on them from other people. Her bank released the funds from her accounts (less than £10K in total, whether that's relevant or not I don't know). I tried to open an Executor's Account for the purpose of keeping her money separate to mine but was refused because I don't have a grant of Probate! I looked online and found that there's not actually a legal requirement to open one, so I just opened a savings account through my bank and have put all mum's money in there. I have a cash book in which I'm keeping a record of all expenditure related to the estate that is usually claimed back from it and also any refunds from utilities etc. The only problem is that some cheques (annoyingly ones for less than £5) have been made payable to my mum's executors! I haven't decided what to do about these as yet.

I think you just need to be able to show a paper trail in case there's any comeback later. In my case it's unlikely to make much difference when I'm the only beneficiary, but I just find it easier to keep mum's money and my money separate even though I'm keeping meticulous records elsewhere.

PasturesNew

We didn't bother - it all went into my sibling's account, who was dealing with it solely. All of us were listed as executors, but my sibling did it all and there was absolute 100% trust between us all about the dealings.

Sibling sorted out all the banks and received money, sorted out some simple stuff re pensions and the tax dept, settled final care home bills etc ... paid for the cremation/etc from her personal account and received back/paid out an assortment of small amounts that were loose ends etc.

Over time, the sibling dropped money into our accounts - and then announced at the end that it was all done.

We should've had a "statement of account" from sibling too - and, if we'd asked, it would've no doubt come ... we didn't as there was absolute trust.

So, you don't need a separate account; you just need accountability and a paper trail in case anybody queries where money came from/went to.

At the end, whoever did the work should be able to list all incoming money - and all amounts paid out - and so long as it's all correct that's it.

troubleinparadise

Chihiro - what nonsense that you need a grant of Probate to open an executor's account- an example of how bank staff have erratic training in handling such matters! You need the Grant to use the funds in the account, with the exception of directly paying either funeral bills or HMRC, but would need a copy of the Will naming you as an executor, a death certificate, and ID for yourself to open it, not the Grant of Probate.

As you say, in your situation it is less important, but for others it might be imperative to keep funds separate. One day banks will get it right in every branch! :mad:

CHlHlRO

What has become clear to me is that few places make things as simple as they could when someone dies.

ThemeOne

CHlHlRO wrote: »

The only problem is that some cheques (annoyingly ones for less than £5) have been made payable to my mum's executors! I haven't decided what to do about these as yet.

I think there's a good chance you'll be allowed to pay them into a personal account if you ask, especially if the cheques are of low value.

flashollie

Sorry to dig up an old thread. I have been reading various threads on here about executors accounts as initially I thought I must have one. I am now of a different mind.
My dad died 2 weeks ago, I am the sole executor, he has no other relatives. I am the sole beneficiary bar a gift to my step daughter for her university fees and a few small charity donations.
So far I have understood that he is just under the limit for inheritance tax using his and my late mums nil rate band and a further 100k allowance because the house passes to me.
I am completing these forms this week.

Having read about the troubles people of have with executors accounts I intend to open a current account in my name to manage the income as accounts are surrendered and the bills the estate has to pay. Funeral costs and the utilities on the house are all I can think of at the moment. I need to keep the utilities on til I can clear and sell the house. I need to stay there when I do clear it because I live 100 miles away.

Having not yet got probate I am surprised to have investment companies all ready wanting to send me cheques having received the death certificates. I have paid 2 of these in to my own personal current account total of about £7k and I will use this to open the new account. This way I can manage all estate and account for the income and expenditure easily. I also will create a savings account to move any larger amounts until all monies are in and I can then distribute the funds.

Can anyone see any reason why I should not do this? The only down side I can see is if a cheque comes made out to to "the executor of....." But i assume I send it back with the grant of probate asking for it to be made out to me?

A further question, as some of his investments are making money where they are am I duty bound to accept the closure of an account sooner rather than later or can leave it with the investment company to allow it grow until I wish to accept it i.e. when the house is finally sold.

Keep_pedalling

Sounds fine to me, I did not open one for my FIL everything went into our joint account. I was the sole executor and my with the sole beneficiary.

By the way you get 2 lots of primary residence nil rate band as well, so should be well under IHT territory.

Tom99

[FONT=Verdana, sans-serif]Whether you have an executor account or mix the money with your own, just make sure you keep a spreadsheet with all income and expenditure as an when it occurs and you cannot go far wrong.[/FONT]