Executor of will and the collection of funds?

metrobus

I've only today come across this section of the forum and amazed by the quality and quantity of knowledge.

It got me thinking.

Must an independent Executor Account be set up or can the executor have funds paid in to his/her bank account before distribution of funds?

I ask since I notice Santander insist on grant of probate to set up and open an executor account regardless of value,although grant of probate is not required to release up to their £50,000 limit to other accounts.

TIA

metrobus

To answer my own question.

Just phoned Santander and been told there would be no problem for funds less than £50,000 to be transferred in to the executors personnel account with out a grant of probate.

However if I wanted to open an executors account a grant of probate would be required regardless of any amounts going in to it.

So if the funds are below the various banks probate limits make sure you do not jump in and open a specific Executor account or you will then needlessly have to go down the probate route.

Linton

It is not mandatory that a separate executor account be set up. However if the estate is sizable and /or complex with multiple beneficiaries it would make it more easy to administer and transparent as to what was happening should you need to show the estate is being managed properly. Also what happens if you die/ become bankrupt etc? It may not be obvious what belongs to you and what belongs to the estate.

When I was an executor the bulk assets ( house sale, large bank accounts) went through a solicitor's client account but the various oddments such as utility refunds, contents of small accounts, and estate expenses went through my personal bank account. I kept detailed records which were merged in with the final estate accounts.

Margot123

I have never set up a dedicated 'executor account' when acting as an executor, however I have always set up a current account separate to my own personal account.

Reasons being:

You are not required to have what banks call an 'executor account', these are just a different label for business accounts and many don't even offer a cheque book (some even charge maintenance fees). Some bank employees don't even have a clue what they are as well!

Opening a current account just for the estate keeps everything transparent should you be accused of siphoning the funds. Plus you don't want others having a nosey at your own private finances, should you need to show statements.

chiny

Margot123 wrote: »

set up a current account separate to my own personal account.

Ah great idea. I had made enquiries about an executor account but miffed to see that none offered to date include net access and they are basically all a bit duff.

Being long-term MSE (no known cure), I always have one unused bank account awaiting "transfer your bank account and get xxx" and it would be no problem to simply use it for executor purposes for a year or so.

Thanks for that.