Executor Account

Yorkshireman99

badger09 wrote: »

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




If you can provide definitive proof of what you say, I would be really grateful.

You need to search for rules on trusteeship, and self dealing. .I will try and check tomorrow.

badger09

Yorkshireman99 wrote: »

You need to search for rules on trusteeship, and self dealing. .I will try and check tomorrow.

Thanks, I really appreciate your help. I'll add it to my list of things to research today.

AnotherJoe

As it happens I opened an executor account yesterday. We tried three banks, Lloyds, Barclays and Santander. All three would only open one if either the deceased or an executor already had an account with them and I'm guessing this would turn out to be a general practice they all follow.

This excluded Lloyd's for us, we ended up with Santander as they could do an ad hoc meeting and open it there and then whereas Barclays couldn't make an appointment for 3 weeks.

The guy at Santander said that it was quite rare for people to open executor accounts so I suppose most people must just use their own accounts, whatever the theoretical rules. Like a previous poster I suspect there isn't actually a law that says you must have a seperate account.

As Lukewarm said, the Santander account is very restricted but for us that's not an issue as there will be very few transactions in or out and one of us lives very close to the Santander branch. The RBS one does sound better with cheque book online access and card etc but we wouldn't be applicable for it assuming they also have the restriction regards deceased or executor having an account with them,

badger09

Yorkshireman99 wrote: »

You need to search for rules on trusteeship, and self dealing. .I will try and check tomorrow.

To be clear, there is no trust set up under my sister's will and both the beneficiaries are adults.

I do understand the similarities between the roles of executor & trustee but none of the articles I've looked at on trusteeship & self dealing, mention executors administering an estate.

badger09

AnotherJoe wrote: »

As it happens I opened an executor account yesterday. We tried three banks, Lloyds, Barclays and Santander. All three would only open one if either the deceased or an executor already had an account with them and I'm guessing this would turn out to be a general practice they all follow.

This excluded Lloyd's for us, we ended up with Santander as they could do an ad hoc meeting and open it there and then whereas Barclays couldn't make an appointment for 3 weeks.

The guy at Santander said that it was quite rare for people to open executor accounts so I suppose most people must just use their own accounts, whatever the theoretical rules. Like a previous poster I suspect there isn't actually a law that says you must have a seperate account.

As Lukewarm said, the Santander account is very restricted but for us that's not an issue as there will be very few transactions in or out and one of us lives very close to the Santander branch. The RBS one does sound better with cheque book online access and card etc but we wouldn't be applicable for it assuming they also have the restriction regards deceased or executor having an account with them,

Thanks again. This is really helpful. I know I must do the right thing. Just trying to make the process as easy as possible.

Yorkshireman99

Tom99 wrote: »

[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]

The two are different things. Keeping trust assets separate is a fundamental principle of trusteeship. The usual procedure as far as paying IHT is for the executor(s) to raise a short term loan secured on the estate assets until the property is sold if there are insufficent cash ine the estate.

Chordeiles

I suspect that solicitors will tend to warn against using a personal account (including ones set up separately for the purpose) because they would like the opportunity to "help" and thus present a bill. But I'd agree a separate account is the best way, and we now have an account with "executors for ....." in the account name because:

1. It was proving to be a pain opening a simple account at Santander (even though it was the deceased's bank and they offered).
2. There was some danger that we would receive "reinstated dividend" cheques made out to "the estate of ...."

We ended up at HSBC (although they, like Santander, had denied having such an account on our first enquiry).
I found evidence that HSBC did offer such an account on the"bereavement" pages of their website. By calling their bereavement line (0345 850 0088) I got all the help I needed, they made appointments for the two executors at their respective local banks (in separate calls) and it got set up pretty easlly, and quickly. But bear in mind that we already had probate (happily nothing we desperately needed money for in the meantime, even though it took forever to get probate).

A few points you may find useful:

• HSBC also call this an "appointee account", in case anyone in HSBC ever looks blank at you.
• You don't need to be an existing HSBC customer. Though in this case one of the executors is, and that may have speeded-up the initial appointment.
• To make an account in the name of two executors (who live many miles apart so couldn't attend the same branch appointment together), the account was opened by one executor who came away from the appointment with forms to add a second executor to the account by visiting their local branch with ID etc. (again appointment necessary - it was a long but pleasant and informative meeting).
• Waiting times for appointments vary enormously from branch to branch (and can be a few weeks), but the lady on the bereavement line was happy to try all branches near us until she found one with an appointment the same day which we grabbed.
• This used to be a "business" product from HSBC, now it's "personal" (good to know if stuck in HSBC's awful automated call answering system !)
• There are charges associated with this account, but if there is no non-sterling input or output, and no beneficiary that insists on being paid by CHAPS then it looks like it will be easy to operate for free.
• The existing HSBC customer already sees the new account online when he logs into his other accounts. For others you'll need to request online access (if you want it - paper statements, cheque book and paying-in book are "standard".)
• We wanted "one of two executors to sign", but if we had wanted "both executors to sign" I think it would not have been available. Indeed it would be possible to for this account to be opened and operated by just one executor where the will and probate shows two or more.

This executor stuff is proving to be an adventure (even though last time I did it it was a doddle), so I hope the above information helps someone.

badger09

Thanks for this info, which may help others in the same situation.

In the end, I opened a separate account in my name with Santander (as both I and my late sister banked with them).

I called this 'Estate Account' and apart from an initial funding from my personal account, so I could get things moving, and subsequent withdrawal of said sum, nothing else went into or out of the account which wasn't estate related.

I requested paper statements and a cheque book, and sent monthly account updates to my co executor, who declined my offer of scanned statements.

When the estate was finally wound up after the house sale and final distribution to 2 adult beneficiaries (my niece & nephew) in November, I switched, rather than closed the account, just in case any further random payment appeared. None did.

I sent my estate account spreadsheet to co executor & beneficiaries and offered scanned bank statements. Again this was declined but I wanted to be totally transparent.

The whole process was reasonably straightforward, thanks to my organisational skills and some help from this board. At the end of it all, I felt I had done a good job, which was the last thing I could do for my much missed big sister.

Woolington

Does a co executor opening an executor account have to have permission from the other executors? and/or inform them they are doing this?

Can the other executors request bank statements?

In my situation we have a solicitor client bank account, there is no need for a separate secret one! Is it still legal for one to exist without the permission or knowledge of the other executors?