Executor Bank Account Query

bloke91

Hi,

I am a joint executor with my sister for my late father’s estate.

My sister would like to setup a executor bank account in joint names to hold the estate funds and distribute following grant of probate etc.

I am worried my sisters credit rating\score could be poor and therefore would not like to be finically linked to her as it could affect my own credit rating\score.

Apart from asking if my sister would be willing to setup her own bank account and share full financial breakdowns on behalf of the estate.  I wondered if anyone has been in a similar situation and had any advice or comments to share?

Thanks in advance.

Keep_pedalling

It might effect your credit score for the short period the account is open, but once closed you will no longer have the link so it should recover any lose of score. 

The tricky thing is to actually find a bank willing to provide an EA, most don’t want to know. 

BooJewels

For most simple estates, an Executor account is probably not necessary.  When I went through this process recently, the bank were reluctant to even let me open one and strongly advised me against it.  They come into their own with very complex, high value estates, but not necessary for most - if they're in joint names, everything will need to be signed jointly too.  Opening one would necessitate you both being present in branch at the same time to do so.

Depending on how you're dividing duties, could you not open an account for the purpose - eliminating the link entirely?  My sister and I are joint executors and joint and only beneficiaries.  Because I'm doing the admin and she's visiting the house and doing more clearing than me, I just opened a current account with my own bank for this purpose and send her simple accounts at the end of every month.  We have the option to add her to the account, but she doesn't want to as it's working perfectly well as it is - because we completely trust each other.

bloke91

Thanks for the comments.  I found this Borrowing together: 5 things to know before you commit | ClearScore

Ths provided some further information but suggests it wont affect my credit score but could affect a lender offering me credit whilst Siter is associated with me

I presume I could request the linked association to be removed from my financial records once everything is sorted quite easily?

My sister can be challenging to work with, so if I let her use an account in her sole name I would have to request regular records and ask her to seek my agreement on things. i.e Monitor things closley.

Welcome any further thoughts and advise.  Thanks in advance.

Keep_pedalling

Are you actually likely to require a loan over the period of winding up the estate? 

bloke91

Might require one myself personally for something else yes.

SevenOfNine

Given some of the things you've commented on regarding your sister I'd say the least favourable option would be to encourage an account in her sole name! 

This forum is full of people who realise, too late, that there's not a lot that is simple (or cheap) in their armoury if things get difficult. Inheritance can bring out the worst in some family members.

People have managed to open executor accounts, my own bank Lloyds were sniffy & totally uncooperative about it so I opened an a/c in my own name instead. Unlike your doubts about your sister, earlier this year my brothers did not need to chase me for anything, unprompted I gave regular financial updates, my credit score fine. If anything I kept them as well informed as I was myself so no need to monitor!

If you can't confidently say the same about your sister, I'd opt for finding an executor's a/c & settle for any possible, temporary, loan pitfalls until the estate account is closed.

Are you anticipating this taking a while, or overly complex aspects slowing things down?

naedanger

If it is a proper executor account (as opposed to a normal joint account used for the purpose of managing the estate) then I would not have thought that should create a financial link with any other signatories on that account. (Since it is the estate's account and not the signatories' personal account.)

But I would check with the bank in writing.

Savvy_Sue

BooJewels said:

For most simple estates, an Executor account is probably not necessary.  When I went through this process recently, the bank were reluctant to even let me open one and strongly advised me against it.  They come into their own with very complex, high value estates, but not necessary for most - if they're in joint names, everything will need to be signed jointly too.  Opening one would necessitate you both being present in branch at the same time to do so.

Not my experience with either Lloyds or NatWest: in each case we were able to sign individually, and with NatWest - the more recent one - I could do online banking without my co-executor's involvement. 

HOWEVER, my co-executor and I trusted each other, and all the beneficiaries trusted us too. 

BooJewels

Savvy_Sue said:

BooJewels said:

For most simple estates, an Executor account is probably not necessary.  When I went through this process recently, the bank were reluctant to even let me open one and strongly advised me against it.  They come into their own with very complex, high value estates, but not necessary for most - if they're in joint names, everything will need to be signed jointly too.  Opening one would necessitate you both being present in branch at the same time to do so.

Not my experience with either Lloyds or NatWest: in each case we were able to sign individually, and with NatWest - the more recent one - I could do online banking without my co-executor's involvement. 

HOWEVER, my co-executor and I trusted each other, and all the beneficiaries trusted us too. 

This was with Halifax and what I as told at the time - as we'd discussed where we lived, relative to each other - making it an impractical arrangement during lockdown - as was the necessity to both attend simultaneously to even open the account.