Executor accounts - necessary? And recommended banks?

Chordeiles

I'm with First Direct (have been for many years) they wanted to know why I might want a joint account with someone at a different address, and when told it was for two executors to deal with an estate I was told "we don't do executor's accounts". It made no difference that we didn't want a _specific_ executor's account, just a simple joint personal account. So I rang their "parent" bank HSBC who told me they don't do executor's accounts (not true according to posts above) but an ordinary joint personal account should be fine (doubtless good advice).

Thus far all the banks, building societies and share registrars (used by the deceased) that I have contacted don't care what sort of account it is, they just want to know where to send the closing balances or sales receipts (but the ID requirements for the executors vary from none to virtually impossible !).

In the case of the Share Centre (who offer a "Deceased Estates Sales Service" for shares registered through Computershare) they want (in addition to original ID stuff for ALL executors) a "recent original bank statement" for the account that will receive the proceeds of the share sale. That's going to be a tough one to satisfy if you only just opened an account for this purpose (whether a "personal" or "executor's" account), so a clear encouragement to use an existing account (which is a seriously bad idea in my opinion).

Thankfully all the beneficiaries named in the will are "family" and will be patient as we work our way through this tedious process. Thank god the deceased didn't name any charities in his will because charities can really make an executor's life a misery. If you really want to spite a relative, name them as your executor and mention the National Trust in your will !

xylophone

so a clear encouragement to use an existing account (which is a seriously bad idea in my opinion).

Indeed - all monies from the estate should be in an account that holds only those monies - they should not be mixed in with monies that belong to any executor/administrator in his personal capacity.

I have to say I am mystified by this problem with opening an executor account - relative had no problem with opening one with Barclays a couple of months back and I opened one with HSBC when I was an executor a few years back.

From Barclays

Executor accounts If you wish to open an Executor/Administrator account to assist with funds
distribution of the estate then please book an appointment at your local
Barclays branch.
You will need to take with you the following documentation:
• Original Grant of Probate/Letters of Administration
• Valid identification for all executors named within the Grant of Probate
or Letters of Administration

Vickster2729

my brother has all of my fathers deceased money in an account with only his name on, despite being joint executor. He also refuses to speak to me, so the money is all in there and he is not distributing it as in the will. What rights has he to do this without my permission or even consulting me. I spoke to the solicitor and he has been led to believe that I agreed to all this, when I told him I didnt and asked for advice he said he wouldnt comment. I have applied to probate court so that I can see all of the finances etc.

xylophone

Take advice from your own solicitor?

bblondon

Thanks for the NatWest link @xylophone, I've known NatWest had an executor account but been going in circles on it, they say on the phone visit branch and after an hour in branch they send me away even more confused, as they haven't heard of such a thing. I really have to have an executor account given I'm the executor of a very contentious Probate.

I've followed the instructions to create a standard current NatWest account and filled in the Probate form with all the proofs, only issue now is I have 13 days of quarantine left before I can take my form in

xylophone

they say on the phone visit branch and after an hour in branch they send me away even more confused, as they haven't heard of such a thing. I really have to have an executor account given I'm the executor of a very contentious Probate.

https://supportcentre.natwest.com/Searchable/913244482/What-is-an-executor-account.htm

Print above off and take it in with you?

Rich_Tribe

Very useful thread this.

Am I right in thinking that noone "releases" money until they have the completed probate document?

So with luck everything comes through in a short time window.

Reason I'm wondering is that now interest rates have picked up a lot I am wondering whether to consider the possible interest if funds were sitting around for months.

e.g. use a new regular current account that has a good associated savings account.

This benefits all the beneficiaries but (getting hazy here) the estate would have to pay income tax at 20%.

ellie99

Rich_Tribe said:

Very useful thread this.

Am I right in thinking that noone "releases" money until they have the completed probate document?

So with luck everything comes through in a short time window.

Reason I'm wondering is that now interest rates have picked up a lot I am wondering whether to consider the possible interest if funds were sitting around for months.

e.g. use a new regular current account that has a good associated savings account.

This benefits all the beneficiaries but (getting hazy here) the estate would have to pay income tax at 20%.

Banks will release money immediately if the amount is below their threshold for requiring probate. So you may have money sitting for months while you wait for probate to proceed with other accounts.
There are lists online of what each bank's threshold is.

Duke99MYD

my issue is i Need an 
interest bearing account to hold the funds as my mum
is life tenant of the estate and I cannot find one

Savvy_Sue

Duke99MYD said:

my issue is i Need an 
interest bearing account to hold the funds as my mum
is life tenant of the estate and I cannot find one

I might be misunderstanding something here, but the Executor's account is only needed for receiving and distributing the deceased person's assets. I think you may struggle to find anyone paying interest on such an account, but surely it is for a limited time? And then the balance due to your mum could be transferred into a more suitable account.