Executor account

Yorkshireman99

Dymphna60 wrote: »

Thanks squibbs25
That’s what I have found out some banks just no longer do actual executor accounts . The few that do only for their existing customers and I never thought to ask that question when opening a bank account.
I know I need to stress less . Blood pressure up. Don’t think best interest of estate will be served by me having a massive stroke.

fred246 . Problem is I am not a smart money saving person so I have no spare account which is what every bank has told me to use .
I seem to have a terrible compulsion to tell the truth .

Everyone. Every guide says then open an executor account. I don’t know if they mean an actual executor account as so few banks do them or they just keep repeating it without checking such a thing exists. Obviously good accounts must be kept by executors no self serving or intermingling of accounts.

The real problem is that if you mix your own money and estate funds it can be a potential time bomb if anything untoward happens to you. Worst case is that the funds are tied up for months whilst someone selected has to untangle it. I may be pessimistic but i personally think it is not worth taking the risk quite apart from the strictly legal aspects. Many people get away with it or do it without realising the pitfalls. Sadly being an executor is not always an easy job particularly if there are difficult beneficiaries to deal with. Personally I no longer want the task. I have made the main beneficiary my executor as they have the most incentive to do it and they are much younger than me. Nevertheless I have told them to use a solicitor if they feel the need but it will cost them.

badmemory

I shuffled almost £250k between my 2 current accounts with no problems. Money went in at 6 pm shuffled out by 7pm, half to me half to my sister. Email to sister detailing incoming & outgoing transaction. Phone call to aforementioned sister to go in and check she'd got it (money & email). Job done. If I popped my clogs in the less than one hour I held the money then I know my son would have dealt with the problem in an acceptable fashion, but the chances of him needing to were highly unlikely.


The only reason these funds would get mingled with your own would be if you didn't immediately get shot of them, which I did, both hers & mine. I saw no reason to hang onto the funds until they were all there but just shipped them out on receipt. Sending a notification email with the new state of affairs to the other beneficiary. Gotta love a good spreadsheet which was a carry on from the POA I had, so knew that no-one was owed any money, including HMRC & DWP.

Margot123

Keep_pedalling wrote: »

Can you provide a link to the law that states that please? can’t find one, and I doubt if you can find one case where an executor has been prosicuted for using the wrong sort of bank account.

I’ve not used one for the three estates I have wound up, I simply used a current account.

There is some misinformation given by some.

It is NOT illegal to open a personal current account to administer the estate, even if the will appoints the executor(s) as 'trustees'.
The term 'trustee' is generally used, it does not create a specific role unless defined as such in the will.

However, if a specific Trust is created, then it is advisable to open a Trustee Account. A STEP solicitor will advise on this.

Dymphna60

Sorry Margot123 I can’t seem to work this quote button maybe phone but probably me .
I really didn’t think it could be illegal to use a current account although an executor account has advantages. If it was illegal why do guides such as Which not say remember it is illegal not to use an executor account.
I did have to book appointment with solicitor before anything else as the will does indeed say appoints the executors as trustees .got him to explain it Mine drawn up by suitably qualified solicitor is in much plainer English.
But simple will no trusts , all adult beneficiaries all easily contactable none insolvent. No close family to squabble nobody dependant on him at time of death .
Just me grieving, tired and frustrated.

Yorkshireman99

Margot123 wrote: »

There is some misinformation given by some.

It is NOT illegal to open a personal current account to administer the estate, even if the will appoints the executor(s) as 'trustees'.
The term 'trustee' is generally used, it does not create a specific role unless defined as such in the will.

However, if a specific Trust is created, then it is advisable to open a Trustee Account. A STEP solicitor will advise on this.

Sorry but you are quite wrong. Executors are automatically trustees. When you open a personal bank account you agree to the terms and conditions. The T & C for a trustee account are very different if you use it for trustee funds then you are breaking the law.

fred246

I wondered what the police siren was for a few minutes ago. I can imagine quite a lot of people being carted off to jail for using a current account to collect and distribute funds. Sometimes you just have to get on and get the job done.

Yorkshireman99

fred246 wrote: »

I wondered what the police siren was for a few minutes ago. I can imagine quite a lot of people being carted off to jail for using a current account to collect and distribute funds. Sometimes you just have to get on and get the job done.

I never said that legal action was likely just what the law says. It is a bit like road traffic offences where many people break the rules every day and never get caught. That does not make it legal!

PassingOutInTheParade

Some people need to get their heads out of books and into the real world.

Trying to frighten someone who is grieving by implying they are acting improperly (if not illegally) is quite frankly disgusting.

Yorkshireman99

PassingOutInTheParade wrote: »

Some people need to get their heads out of books and into the real world.

Trying to frighten someone who is grieving by implying they are acting improperly (if not illegally) is quite frankly disgusting.

Sometimes the truth hurts. Do you really expect me to give false advice and mislead someone in a vulnerable position? I reject your offensive allegation. YOU are the one being disgusting.

SevenOfNine

Dymphna60, you can't be expected to open a type of a/c that many banks no longer seem to offer!

I'm wondering if you are talking about a hefty sum of money, which may be where the problem lies with opening a new a/c in your sole name to hold the funds.

Lloyds were very accommodating, up to £40K in the deceased's a/c is their maximum to pay out on sight of the death cert & your ID. A disclaimer is signed for them & the money transferred. No questions asked about who or how many executors, will, probate.....NOTHING.

Each bank has their own limit, perhaps you're over yours?