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Executors account

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Copper2Copper2 Forumite
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My sister and I are executors of my mums will. We have money in various accounts plus a house to sell. Should we divide up the monies in the bank accounts to beneficiaries now, then do the same when the house is sold. Or just do it in one lump sum - we don't know how long the house will take to sell
Also can we open an executor bank account with us living in different parts of the country, and both of us confirm any transaction from it

 

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  • Grumpy_chapGrumpy_chap Forumite
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    Sort everything, pay any IHT, then distribute to beneficiaries after probate.
  • AnotherJoeAnotherJoe Forumite
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    I can tell you what me and my brother did. We were joint executors in the will. We are on good terms.
    Will was a few smaller beneficiaries fixed sums (important), and half of rest between us two.
    He reserved powers  (that meant, only one sig required on document after initial application)
    There was no IHT payable. No debts.
    We split everything 50/50 as it happened. No executor account, just used our own bank accounts.
    Money in her bank / bs accounts split 50/50 as it came in
    Bill needed paying? Funeral, probate fees etc etc. One of us paid, the other paid them half.
    Expenses on the flat, utilities,  council tax (it took 2 years to sell) , one wouldpay the other pay half.
    When the flat was finally sold,  solicitor sent it to me, i paid beneficiaries  and then i paid half the remainder to him. 
    And since everything was paid at the time it was due there was no reconciliation of accounts to be made, no possibility of errors. Even if he paid a bill for £50 and same day I paid one for £100, Id still send him £25 and him send me £50 so we were always up to date and "square" with each other.
    The complication in your case might be if beneficiaries get nota fixed sum but a % each,  and you and sister then split the rest. Then you'd have to keep records so you didnt lose out on necessary spending.
    BUt id still say it could be done without an executors bank account which in my experience were a pain to get (I did try but gave up). Just keep good records of the expenses there will be more than you expect since theres a property to sell.

  • xylophonexylophone Forumite
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    It will make life easier to open an exor account. You will need to wait until you have probate to do this. Relative used Barclays because he and the deceased had banked with Barclays for decades.
    He was required to attend an interview at the branch.

    If you and your sister are living in different parts of the country, it might well  be more convenient if  one of you has "power reserved".

    You will be able to gather all the deceased's cash etc and the proceeds of the house sale into the one place and then draw cheques in favour of the beneficiaries.

    If the  bequests to beneficiaries are fixed sums, and you have enough to cover these in the account, you would be able to make the distributions before having gathered in all the assets.

  • MojisolaMojisola Forumite
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    Copper2 said:
    My sister and I are executors of my mums will. We have money in various accounts plus a house to sell. Should we divide up the monies in the bank accounts to beneficiaries now, then do the same when the house is sold.
    You can do an interim payment of cash as long as you keep back enough to cover all the costs of dealing with the estate. 
  • TBagpussTBagpuss Forumite
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    I wouldn't divide up the accounts until the house is sold as you may need money to pay for things like house insurance and even council tax if it takes a while to sell.

    Depending on how much there is in the accounts, you could however make interim payments on account - e.g. if the bank accounts were £30,000 you might distribute £25,000 and keep back £5,000 so you can pay any ongoing expenses (or a larger sum if you feel it may be needed) 

    As long as you keep good records and account it all at the end you will be fine.

    An executors account make it easier to keep track of, especially if you have multiple beneficiaries or anyone who might be awkward! 
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
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