Executor account setup queries

dougsterg

Hi, currently i am in the process of working my way through applying for confirmation(Scotland) after the passing of my dad last month. My question is relating to the set up of an executor bank account to put in all the proceeds from my dads estate. I have a bank account with the RBS and they are able to set up an account with cheque book, direct debit facilities etc. Due to my own circumstances with no wife or children my personal estate would be subject to Inheritance tax if I passed away at the current time. My dads will has my sister and I as sole exucutors and also the sole beneficiaries of the estate. Would an executor account be subject to inheritance tax if the funds were still present in the account if I were to die? Also I was going to have my sister named on the executor account but she is in receipt of welfare assistance and dont know if this would cause problems with her benefits as this new account may be classed as savings? As I had a joint acccount with my late father, the accounts have passed over to me and the money I have received from life insurance and the cost of his funeral etc have been deposited/ removed from said account. Would it be acceptable to just use this account to deposit the proceeds of the property sale? The value of my fathers estate would not be subject to Inheritance tax. Thanks in advance for any assistance you can share with me.  

xylophone

It would not be good practice to use an account standing in your sole name to receive monies owing to the estate.
The  joint exor account (in the names of you and your sister)  should hold the money arising from your father's assets.
You hold the funds within it as exors, not personally.
If you were to die before the funds in the account were passed to the beneficiaries, it would be up to your sister to complete administration.
If part of the money in the account represented a bequest to you, then that bequest would form part of your estate and fall to be dealt with under your own will.
As your sister is herself a beneficiary under the terms of your father's will, this money may anyway affect her benefit position?  Bear in mind that she cannot just give the money away (or execute a Deed of Variation) in order to keep benefits - this would be regarded as wilful Deprivation of Assets/Capital.

Flugelhorn

Agree with xylophone, if your sister is going to get some of the money, it makes no odds what the name on the account is - she is considered to have got it. 
I found RBS helpful in that they labelled the account "Ms F Horn, exec of Mrs D Horn" so made it clear where the money came from and that it wasn't mine, well only mine as exec.

Keep_pedalling

Whether your sister’s name is on the account or not her inheritance is going to effect any means tested benefits she gets, and surely the money will only stay in a executor account for a very short period as you will be able to distribute it immediately.

dougsterg

To be honest it will be some time before all the estate proceeds are put into an executor account. This is due to the property having to be cleared after a lifetime years of living, hoarding and clutter and will need some minor refurbishment once empty. The gardens are also needing attention and this all adds up to a lot of hours graft on my part. Also is it not good practice to leaving the funds in the executor account for a period of time to make sure there are no claims against the inheritance as solicitors practice, I being the executor- nominate would be liable as it would have been myself who had distributed the funds.