Executors Account - Recommended, Required or what?

timg147

Hi All,

Just looking for a bit of advice really. Both my parents have passed away this year, one at the start of the year and the other more recently. So what was initially a relatively easy exercise of the estate passing to the remaining spouse has now become a bit more complicated.

I have read various posts on here regarding Executors accounts. Is there any benefit to using one apart from the higher FSCS cover.

I have just been on the phone to my bank (First Direct), explaining the situation and asking the best way of doing it, either an executors account or an additional sole account or a joint account (with my brother who doesnt bank with them). Basically they couldnt help me.

My initial work into the value of the estate suggests it will be into seven figures.

A quick look on the internet suggests that if i need to open an executors account I will need to go into a branch at some point, which is not easy as I work long hours normally outside of Banking hours.

Does anyone have any suggestions as the best way to proceed given that my brother and I bank with different banks.

Marcon

timg147 said:

Hi All,

Just looking for a bit of advice really. Both my parents have passed away this year, one at the start of the year and the other more recently. So what was initially a relatively easy exercise of the estate passing to the remaining spouse has now become a bit more complicated.

I have read various posts on here regarding Executors accounts. Is there any benefit to using one apart from the higher FSCS cover.

I have just been on the phone to my bank (First Direct), explaining the situation and asking the best way of doing it, either an executors account or an additional sole account or a joint account (with my brother who doesnt bank with them). Basically they couldnt help me.

My initial work into the value of the estate suggests it will be into seven figures.

A quick look on the internet suggests that if i need to open an executors account I will need to go into a branch at some point, which is not easy as I work long hours normally outside of Banking hours.

Does anyone have any suggestions as the best way to proceed given that my brother and I bank with different banks.

There's nothing particularly special about executors' accounts, other than banks often declining to offer them! There is no legal requirement to have one, but it would make your life easier to have a separate account which you can use specifically for matters related to your parents' estates.

If you can't open a second current account with First Direct, try your brother's bank - or a different bank altogether. It's worth having a savings account as well, especially if you expect to hold any substantial amounts of cash at any time during the process of administering the two estates. You may be able to open such accounts online, or you might simply have to make time to go into a branch at some point (ditto your brother if you open a joint account, which would seem logical).

badmemory

Our inheritance wasn't as large as yours, around £250k.  The 3 local banks all said why bother when asked about executors accounts.  So I dealt with it all as one of the two executors & started a spreadsheet with likely amount then actual amount realised & showing the 50% paid over to my sibling.  I just put it all in an account in my name & transferred the money over as it came in, which the both banks I used were quite happy with.  It was quite interesting in a way because with either £10k or £20k daily limits you can transfer one lot at 23.55 & the next lot at 00.05.  I used to send the spreadsheet via email so my sibling knew what I had done & to check the account to make sure it arrived.  Our biggest problem was the tax rebate from HMRC which they sent before she died & the care home hadn't passed on so the chq was uncashable (I'd also had POA so had already been dealing with that).  It was the very last thing to get sorted.

getmore4less

Separate account is easier to keep the assets ring fenced
(they are estate trust funds)

Good inventory and account to keep track of the estate.

kipsterno1

I openned an executor account with Natwest but never actually activated it.  It opens as a normal account and then you need to provided certain documents to turn it into the executor account. My rationale was I could use it to do what was needed and if at any point in the probate process an organisation insisted on dealing with an executor account I would get it updated.

shadley

Try Metro Bank.  They are open on Saturdays until 6:00pm and Sunday's until 5:00pm.  Although you do have to book an appointment to open an Executors Account with them.
I too opened an account but never used it - the 2 organisations that were insistent that any investement funds could only be paid into an executors account relented and upon written agreement of the 3 executors were happy for it to be paid into a single named normal account.
I looked everywhere for a joint savings account with 3 people but 2 seemed to be the maximum.

msb1234

I opened and executor account with Barclays, but I do bank with them too. I also had to make an appointment in branch and take my ID plus a copy of the will and probate. One of the insurance companies paying out the funds said they would only pay it directly into either a solicitor account or an executor account!

Devongardener

My brother and I opened an executor account with Lloyds for my mother’s estate, mainly because we were advised that if it had been an ordinary joint account the funds would become part of our own estates should either of us die before they were distributed. I know that could be unpicked eventually, but it was a consideration. Also it was protected for 6 months above the £85k bank limit.    The big drawback was that Lloyds executor accounts don’t allow online or telephone banking which meant we had to visit a branch for everything.

badmemory

I found not being able to do online banking was another good reason not to open an executors account.  Mind you the money was rarely in the account for even 24 hours  This is the advantage of having only 2 people involved who trusted one another.

bobster2

Regarding FSCS cover - if there is a house sale involved see point 4 here...

https://www.moneysavingexpert.com/savings/safe-savings/