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Own account or not as executor?

6 replies 134 views
I think I know the answer but just throwing it out there.  Going through the process of pulling together mums estate for Iht/probate so bank accounts frozen.  I have come across 2k cash in old £20 so will need to pay into the bank and there are also a few cheques following mums passing under £500, can I pay these into my account and utilise cash for property valuation, legal advice as long as it is fully declared on the IHT Submission and appropriate tax paid?
Many thanks

Replies

  • AnotherJoeAnotherJoe Forumite
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    Yes.  Are you the sole beneficiary ? Do others geta % Ora fixed amount ? Are you on good terms with them? Is the estate over it near IHT? All that affects how detailed (if any) records you need to keep. 
    "For every problem,  there is a solution that is clear, simple and wrong"  HL Mencken. 
  • JGB1955JGB1955 Forumite
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    It would be best to open up a separate bank account (in your name) and have her 'frozen' funds transferred into it. Each bank has a different limit but, for example, Barclays will transfer up to £50K without any problem.  If the cheques are made out in your mother's name you won't be able to pay them in, and will have to ask for replacements in your name.  You can then use the new account to pay all your executor expenses.
    #36 Saving for Christmas 2020 - £1 a day challenge.... £590/£366...
  • Helly18Helly18 Forumite
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    Thank you.
    Myself and 1 of my brothers are executors (he is happy for me to do whatever and i keep him updated). It is an equal 3 way split between myself and brothers, we are all on good terms.  The estate is over the threshold for inheritance tax but fairly simple as in it is mostly cash assets, no bonds, shares etc?
  • Helly18Helly18 Forumite
    13 posts
    Fourth Anniversary Combo Breaker First Post
    JGB1955 said:
    It would be best to open up a separate bank account (in your name) and have her 'frozen' funds transferred into it. Each bank has a different limit but, for example, Barclays will transfer up to £50K without any problem.  If the cheques are made out in your mother's name you won't be able to pay them in, and will have to ask for replacements in your name.  You can then use the new account to pay all your executor expenses.
    There is going to be a substantial amount of money following probate so i would feel more comforable with a separate account, question is really more for the short term for the cash deposit?
  • xylophonexylophone Forumite
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    so bank accounts frozen.  

    Some banks will accept credits to the the deceased's account - have you checked?

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  • BooJewelsBooJewels Forumite
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    I'm just managing my father's estate and asked similar questions here recently.  In the end I opened a new current account with my own bank (over the phone) in order to keep the estate accounts separate from my own money, as for the foreseeable, those funds will be used solely to fund the house until it sells - insurance, utilities etc.  The intention was to make it a joint account with my sister (just us as executors and beneficiaries, not much value other than the house - but we'd need to visit a branch in person to do that, not possible just now) but I don't think she's at all bothered about that happening.  She's paid a couple of things from her own bank account and I transferred it back to her within the hour, so she's not likely to be disadvantaged by not being part of the account.

    Because I used my own bank to open an account, it was up and running in my own online account and app by the time I put the phone down and I had a bank card and PIN in about 3 days.  It's perhaps not even necessary, but I felt it important to do it cleanly.  I keep a spreadsheet with everything recorded and I'd be prepared to bet that I'm the only party bothered about that.
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