Executors accounts

JGB1955

Just send the cheque back and ask them to make it payable to you.

jonesMUFCforever

JGB1955 said:

Just send the cheque back and ask them to make it payable to you.

There is a legal requirement for any funds due to an estate to be paid correctly into that estate.
Whilst some would do so for small amounts they do not have to. The proper way is to make the cheque payable to the Executor or Administrator of an estate.

DiamondLil

When my parent died I opened an executor account with the TSB. Setting it up was easy and the bank couldn't have been more helpful.

Vortigern

Is it possible to convert the deceased's existing current account to an executors account? That seems to require little more than a name change from Mr J Bloggs to Exors of Mr J Bloggs, and a change of signatory, address and access. 

LobsterMemory

1 One of the first things an executor does is freeze the account so no outgoings are allowed. Not ideal for an Executors Account.
2 The bank account is one of the assets of the estate that has to be distributed according to the will. Mixing it with all the dealings of the estate could get messy.

Emmia

LobsterMemory said:

1 One of the first things an executor does is freeze the account so no outgoings are allowed. Not ideal for an Executors Account.
2 The bank account is one of the assets of the estate that has to be distributed according to the will. Mixing it with all the dealings of the estate could get messy.

Usually once the deceased account is frozen, the bank will authorise a payment to an undertaker for the funeral (assuming funds are available in the account) - we had an issue as the undertaker took a deposit, and then the balance as 2 payments from the deceaseds account, and the second payment was initially declined by HSBC - took a couple of phone calls to get the payment authorised, but overall HSBC were really helpful. 

Zanderman

jonesMUFCforever said:

Zanderman said:

jonesMUFCforever said:

jbuchanangb said:

Five years ago, when my father died appointing myself and my sister as joint executors we wanted to open a joint account to manage the executorship. The bank at which my father had held his account for over 60 years, and which had dealt with us as joint attorneys, signing cheques etc. on his account (even handling the sale of his house when he entered permanent residential care), declined to open an account for the executorship. The bank at which my sister held an account also declined to open an account for this purpose. Like others have mentioned, I then resorted to making use of an idle current account to maintain executor funds separate from my personal funds. My sister didn't like that because she had perfect right to be a joint signatory on any outgoings, but having been turned down by two banks, we compromised.

The problem you would have had (or to be precise your next of kin or Executors) would have been if you had died suddenly say after an accident. Those monies would have then formed part of your estate and made it very difficult for the proper people to be paid out especially if there was any kind of family dispute.

Yes that would be a mega problem.

Which makes me wonder - because the Exec account we set up with Lloyds when my mother died, which over several months had about £500k passing through it, was (and still is, though with less than £50 now), an account in my name that appears on my login. I (and my fellow executors - with whom I and the bank had agreed having just one signatory would be easiest) had been assured this was ok, but that there were restrictions on the account meaning I could only withdraw by cheque, not online (I've never checked that this is true btw).  Which meant there was a bit of formality about the shelling out of the cash.

But, as I say, the account is in my name.  And Lloyds don't see it listed as anything special - a PPI refund (for me) last year was paid into it as if it was just another account.  Lloyds letter about that refund told me it was being paid into my account ending '1234' and I actually rang them up, as I didn't recognise it saying I don't have an account ending in '1234'.  It was during the call I realised that it was the Exec account.  I asked them to reverse it and pay into my 'real' account.

But maybe, legally, that so-called exec account, opened 'specially', and with the bank's blessing, was just an ordinary account of mine after all.  Slightly worrying.

I agree with you 100% - the only way to prove that the account was an Executor was by showing a paper statement which was titled Executor of somebody decd.
Me thinks this was done to save money by dumbing down what bank staff could do.

Emmia said:

Zanderman said:

jonesMUFCforever said:

jbuchanangb said:

Five years ago, when my father died appointing myself and my sister as joint executors we wanted to open a joint account to manage the executorship. The bank at which my father had held his account for over 60 years, and which had dealt with us as joint attorneys, signing cheques etc. on his account (even handling the sale of his house when he entered permanent residential care), declined to open an account for the executorship. The bank at which my sister held an account also declined to open an account for this purpose. Like others have mentioned, I then resorted to making use of an idle current account to maintain executor funds separate from my personal funds. My sister didn't like that because she had perfect right to be a joint signatory on any outgoings, but having been turned down by two banks, we compromised.

The problem you would have had (or to be precise your next of kin or Executors) would have been if you had died suddenly say after an accident. Those monies would have then formed part of your estate and made it very difficult for the proper people to be paid out especially if there was any kind of family dispute.

Yes that would be a mega problem.

Which makes me wonder - because the Exec account we set up with Lloyds when my mother died, which over several months had about £500k passing through it, was (and still is, though with less than £50 now), an account in my name that appears on my login. I (and my fellow executors - with whom I and the bank had agreed having just one signatory would be easiest) had been assured this was ok, but that there were restrictions on the account meaning I could only withdraw by cheque, not online (I've never checked that this is true btw).  Which meant there was a bit of formality about the shelling out of the cash.

But, as I say, the account is in my name.  And Lloyds don't see it listed as anything special - a PPI refund (for me) last year was paid into it as if it was just another account.  Lloyds letter about that refund told me it was being paid into my account ending '1234' and I actually rang them up, as I didn't recognise it saying I don't have an account ending in '1234'.  It was during the call I realised that it was the Exec account.  I asked them to reverse it and pay into my 'real' account.

But maybe, legally, that so-called exec account, opened 'specially', and with the bank's blessing, was just an ordinary account of mine after all.  Slightly worrying.

My executors account is named Executors of [name of deceased] which avoided any issues around confusing my personal finances with estate finances.

Just to update my earlier post. 

Because the now largely exhausted 'Executor's account' I have for my old mum at Lloyds seems, as I posted above, to be in my name, I did consider it, briefly, today as a candidate for an upgrade to Club Lloyds and take advantage of their current switch-in offer.  A bit odd, but it did, briefly, seem an option.

But then I remembered that whilst the account seems to be in my name (the issue I was worrying about above - and Lloyds themselves seem to think it's in my name), the cheque book actually states the account is Executor of the late zander-mum.  So apparently not my name - and if so, then my concerns above were unfounded. 

All very confusing.  I do need to close it soon as the dosh has all been executed apart from a small change to cover trivia.  If I get a chance I might brave a visit to the branch and ask them exactly what their systems think the account is called and whether to close it or just re-brand it as one of my own (for switching incentives!) now that it's no longer needed.

jonesMUFCforever

All very confusing.  I do need to close it soon as the dosh has all been executed apart from a small change to cover trivia.  If I get a chance I might brave a visit to the branch and ask them exactly what their systems think the account is called and whether to close it or just re-brand it as one of my own (for switching incentives!) now that it's no longer needed.

I don't think that they can - nothing stopping you opening another Classic account online and using that as a mule?

jbuchanangb

The problem you would have had (or to be precise your next of kin or Executors) would have been if you had died suddenly say after an accident. Those monies would have then formed part of your estate and made it very difficult for the proper people to be paid out especially if there was any kind of family dispute.

We were very aware of this. As we had been joint attorneys, and were now joint executors, and indeed the terms of the will were that the entire estate was to be shared between us, we minimised the risk by dividing all funds equally we received them. We had no-one to answer to but ourselves, and managed to behave professionally and divide the estate fairly.