Is an Executors account necessary ?

longleggings

We are having a bit of a problem with NatWest in setting up an exec a/c for my late mothers estate. But i'm sure we will get there soon (Corona slowing things)
I'm having a discussion with my brother over the need for an executors account he does not see the need, i would prefer we did.
The estate is over 500K and has 3 executors and around 10 beneficiaries. There are around 10 different investments to sort out.
I feel that if we do not have a exec a/c it will not be so easily transparent and that some companies will make any payments out to Execs of which may cause problems,
also i think that we may have to complete some form of accounts showing distribution of monies at the end. Also I assume that any disputes would be easier to resolve if monies came through an exec. account.
Am i being unduly cautious ? I would be grateful if anyone can respond with views on the benefits or not of having an exec. account
As always, any comments welcome
Thanks
L

xylophone

Under the circumstances described (  particularly multiple beneficiaries), I'd say that an exor account is a necessity, not an optional extra.

It keeps all monies due to the estate clearly separated from personal accounts of the exors, enables transparency of inward and outward payments, and eases the production of the estate accounts.

https://www.co-oplegalservices.co.uk/media-centre/articles-jan-apr-2017/can-a-beneficiary-of-a-will-see-the-estate-accounts/

Friend2020

I have concerns relating to the honesty of the executors of my mother's will.
If there is no property to sell, only money, how can I know what her "estate" is worth?

xylophone

I have concerns relating to the honesty of the executors of my mother's will.
If there is no property to sell, only money, how can I know what her "estate" is worth?

Has probate been obtained? If so, you can obtain a copy https://www.gov.uk/search-will-probate

Are you the sole beneficiary? The residuary beneficiary?

Estate accounts? See link above.

HHarry

I didn’t use an Executors account for my Mum’s estate.  For reasons I can’t remember it wasn’t as straight forward to open as I expected.  I had an empty account, so I used that instead.
For us it wasn’t a problem - my Brother trusted me and I was scrupulously open with what was coming in and out.
One company sent a cheque “To the Executors of....”.  I returned it and asked for a cheque in my name with no issues.

longleggings

Thanks for the advice Xylophone. I agree that an exec. account is a necessity.
One further question re. estate accounts. Are executors legally required to produce Exec. accounts at end of process i.e when all the monies have ben distributed. If so, where are these account sent / Is to tax office? and do they need to be audited?
Thanks again
l

Alter_ego

longleggings said:

Thanks for the advice Xylophone. I agree that an exec. account is a necessity.
One further question re. estate accounts. Are executors legally required to produce Exec. accounts at end of process i.e when all the monies have ben distributed. If so, where are these account sent / Is to tax office? and do they need to be audited?
Thanks again
l

There is no routine need to provide details of exec accounts, But HMRC , DWP etc may require information. So basically produce them if asked.

badger09

longleggings said:

Thanks for the advice Xylophone. I agree that an exec. account is a necessity.
One further question re. estate accounts. Are executors legally required to produce Exec. accounts at end of process i.e when all the monies have ben distributed. If so, where are these account sent / Is to tax office? and do they need to be audited?
Thanks again
l

Many of us have dealt with Probate on fairly complicated estates, without a designated Executor bank account, myself included. I simply opened a new account with a bank @ which both my late sister and I already held accounts and all estate transactions went through that. However I agree that in your situation, a designated Executor bank account is the best option.

As far as producing estate accounts at the end of the administration period is concerned, residual beneficiaries are entitled to receive a copy. I haven't heard of either HMRC or DWP asking for a copy.

xylophone

When I was exor (and the same holds true for relative still in this position), accounts were prepared but there was no need to send them to anybody but the residuary beneficiaries.

longleggings

Thanks everyone - I think i have a handle on this now