Executors bank account

alisont

Hi, Would anyone know about setting up an executors bank account? I rang my bank HSBC to ask to set one up but they said it had to be done in branch, they then said they are not opening executor accounts during the pandemic and that I’d need to wait a few months. 

I’ve tried M&S bank who I’ve an account with and find they are not opening new accounts either. 

I’d prefer a separate account for transactions as easier and more transparent but can you use your own account? I’m keeping an electronic record of any expenses. I’ve not started probate applications yet or inheritance tax forms.

I’ll have a look at other banks but takes so long to get to speak to anyone just wondered if anyone knew of banks currently offering new accounts. 

Thanks in advance for any replies. 

naedanger

alisont said:

Hi, Would anyone know about setting up an executors bank account? I rang my bank HSBC to ask to set one up but they said it had to be done in branch, they then said they are not opening executor accounts during the pandemic and that I’d need to wait a few months. 

I’ve tried M&S bank who I’ve an account with and find they are not opening new accounts either. 

I’d prefer a separate account for transactions as easier and more transparent but can you use your own account? I’m keeping an electronic record of any expenses. I’ve not started probate applications yet or inheritance tax forms.

I’ll have a look at other banks but takes so long to get to speak to anyone just wondered if anyone knew of banks currently offering new accounts. 

Thanks in advance for any replies. 

Yes, you can open another personal current account for this purpose. It may not be perfect but at least it keeps all transactions separate from your personal accounts, and plenty of people do this.

(And I don't think many banks will open an executor account prior to obtaining probate, and it is possible you will want to deposit estate assets and pay bills prior to probate, so a personal account also has some advantages.)

Fly_Guy

I had exactly this issue recently. Also most banks won't set up a 'real' executors account without probate. Meaning that you're left without an account for many weeks during which you will probably need to be paying multiple bills.

What I did was just open another 'normal' current account with my existing bank - I just did this online via their online banking platform. I then renamed this new account 'Executors of..." in my app to make it clear what it was for. 

Seems to have worked so far...

p00hsticks

I've done the same - at the moment I am using a personal account that I already had but didn't much use. My understanding from reading previous threads on the subject is that the main risk is that the money technically belongs to you, not the estate and so there can be problems if anything happens to you before the estate is sorted (With an executors account the money is held 'in trust' on behalf of the estate).

However at present I'm finding that more is going out than coming in - I've had to start with a 'float' of my own money that I'll take back at the end - so I don't see this as being a great issue. I intend getting an executors account set up at a later date (once we have probate) to receive the proceeds of the eventual house sale.

Another point that I've heard - which may be wrong - is that you can't usually use online banking with an executors account, and if this is true a personal account seems much better for paying bills and keeping an eye on things.  

naedanger

p00hsticks said:

I've done the same - at the moment I am using a personal account that I already had but didn't much use. My understanding from reading previous threads on the subject is that the main risk is that the money technically belongs to you, not the estate and so there can be problems if anything happens to you before the estate is sorted (With an executors account the money is held 'in trust' on behalf of the estate).

However at present I'm finding that more is going out than coming in - I've had to start with a 'float' of my own money that I'll take back at the end - so I don't see this as being a great issue. I intend getting an executors account set up at a later date (once we have probate) to receive the proceeds of the eventual house sale.

Another point that I've heard - which may be wrong - is that you can't usually use online banking with an executors account, and if this is true a personal account seems much better for paying bills and keeping an eye on things.  

An interesting point on what the difference means in practice.

I think in general if the executor died while holding the estate's money in a personal account there would not be too much of an issue. Since although the assets in that account were technically theirs, they also had a liability for the exact same amount to the estate. So their executor would simply repay the debt to the estate from the money held in the personal account. (All this assuming they kept good records, but having a separate account would significantly help determine which was estate money and which was the deceased executor's own money.)

Where it might get very messy is if the executor died while personally insolvent. Especially if they had  personal debts to the bank holding the estate's money. Then the bank might grab the estate's money (as it was simply held in a personal account) to offset the personal debt. And if the executor's own estate was overall insolvent then all the worse.

I think if the executor's own personal finances are not good they might be well advised not to put estate money in a personal account.

Savvy_Sue

p00hsticks said:

Another point that I've heard - which may be wrong - is that you can't usually use online banking with an executors account, and if this is true a personal account seems much better for paying bills and keeping an eye on things.  

A few years ago now, but I was (eventually) happily able to do internet banking on a joint executors account with NatWest. 

JGB1955

Some people still think it's  easy to open an executors account..
.not if one of the executors lives in Singapore! Opened a second Nationwide account in my sole name and just made sure I transferred everything out to beneficiaries as it arrived. 7 months after death  600K has passed through the account. Balance of £600 still there. HMRC owe my deceased father £300-ish for 2019/20 and the estate in administration owes £300-ish. It will all get sorted sometime!

alisont

Thank you for the replies so far, it does seem the first complication I’ve encountered so far. 

I will see if I can set up a separate account on my bank account, so far I’ve my current account and a savings one. No bad credit history or anything along those lines. 

I’m keeping an electronic record of any transactions and one of any calls, actions etc. 

Not driving I do not wish to be making trips to banks, the online/phone options seem the safest. I’m guessing I’ll need the grant of probate but not rushing to start that just yet. 

badger09

Are you sole executor?
Are you also a beneficiary? Sole or are there others?

Basically, most of us who have dealt with Probate as executors in recent years have simply opened a separate current account with our existing bank and made sure every transaction related to the estate goes through that account. Just open another account online with HSBC. If possible, rename or nickname the account something like 'Estate Account' or 'Re  xxxxx' (name of deceased) so you can see at a glance which account you're using.

If there are other executors, it is simpler if they will reserve powers, so you can get on with it. Obviously this isn't always possible, but even in non COVID times, it makes life so much easier. 

 

parcival

Going through this now - Sister and I are both Executors and beneficiaries of our Mothers estate. 
I am using a long held Co Operative bank account and my sister reserved her power. All transactions go through that account and are recorded on a spreadsheet - very simple estate though.
 

BooJewels

Another vote for just a separate bank account - I opened one with my usual bank, over the phone - fully explained the purpose to them.  Then gave it the nickname of 'Estate account for x'.

The bank actually advised against an executor account at the current time (plus we'd have to both attend a branch simultaneously - not possible in the first lockdown - we live apart and I don't drive either) and said it was only really necessary if there was a lot of money involved, a complex estate (lots of investments and assets) and many beneficiaries.   My sister and I are the executrices and only beneficiaries of our father's estate (and fully amicable) and the estate is about as simple as possible.  We just need an account (with the remains of his money) to fund the house until it sells - insurance, power DDs etc. and any miscellaneous on-going expenses.

I also have a separate and newly opened savings account that I'm putting the proceeds of anything sold into (largely eBay at the moment), as we're allocating that for a particular joint purpose, but it's detailed in the estate accounts.  I think keeping track of every transaction and what you do - should you be asked to explain yourself - is more important that where you bank it.