Executor accounts

DualVision

Just a few questions about executor accounts.

My dad died just recently, and as an executor, I informed Santander, where he held an account. So as part of the process, they offered to close the account and put the funds to one of my own. So I decided to set up a special account with them and move it to that.

On advice, I recently decided it might be a good idea to convert this to an executor account. Unfortunately on asking them over the phone, they told me that they "don't do executor accounts". Is this really true? I'm sceptical, as on googling, I discovered a Guardian article from nearly 10 years back that revealed Santander have a bit of form for telling customers they don't, when they do, and banks really don't like setting them up anyway. Not sure why? Perhaps one mistake I made was telling them I'd like the ability to write cheques to pay some bills and debts of my dad's, as I get the impression in modern banking, cheques are one of the more expensive things they have to deal with (the account I actually set up was a savings account, so it's tricky to pay anything that can't take direct electronic payment).

Should I phone back and insist on an executor account? What would be the best way of going about this? If I did manage to open one, would the executor account be in my name? If I instead, don't open an executor account, and instead open a regular current account, and move funds into there to pay estate bills, as long as I don't use it for any other purpose that could confuse matters, would that be just as good, or could that cause any problems with inheritors? What's the real advantage of an executor account?

Keep_pedalling

Lots of banks do not do executor accounts but as long you keep the money in a separate account it does not really matter.

You say you are an executor rather than the executor so you should be using a joint account rather than a sole one.

BooJewels

You really don't need an executor account - they come with all sorts of limitations in how they operate (for example, if there are 2 executors, then both would have to sign every cheque) and aren't necessary for most simple estates.  If the deceased had a massive and complex estate with lots of investments and several properties to sell and lots of beneficiaries etc., then it would be advisable. 

But for most purposes a current account that you keep entirely separate from your own money and keep good accounts and records for will suffice.  I'm just finalising an estate and opened a new current account for it and that has worked fine - I paid all utilities on the house until it sold from it, insurance, skip hire, house clearance etc etc.  If my sister, the other executrice had to pay for something, she paid it herself and I just refunded her by transfer from the estate account and she passed on the receipts/invoices etc.

I think you'll find that most here will do the same - just open a separate current account.  And keep good records.

DualVision

Thanks, that's cleared a few things up.

msb1234

I have just opened an executor account. I am the executor of my mum’s estate. I used Barclays. It’s correct that lots of banks don’t have them anymore. 

I’ve got a cheque book, online banking and telephone banking with the account so that I can pay off creditors and beneficiaries once all the monies from her estate have been paid in. One of her insurance policies would only pay either directly to beneficiaries or into an executor account. I did need to go into a branch to set it up, taking her will, probate certificate and my ID but it was straightforward. 

The main benefit is that should I die before I have chance to distribute the estate, the account it ringfenced and doesn’t form part of my own estate.

shiraz99

As above, a specific executor account is not required and quite often some banks that offer them will advise not to bother as they can be a bit of a pain to administer, particularly when you have multiple executors. I was in the same process myself and had set up a separate account for the purpose ready to convert it to an executor account but Natwest said it would be much simpler just to keep it as a standard account.