Executor account - any advantage to using my existing bank, or deceased's bank?

PennyWalker

I am the sole executor of a will. The deceased banked with First Direct. I bank with Nationwide. Is there any advantage in trying to open an executor account with my bank? Or with the deceased's bank? Or doesn't it make much material difference? 

Olinda99

you can use any bank account you want as long as you keep adequate records.

would not use deceased bank as that will be frozen when you notify FD of the death

p00hsticks

The topic comes up quite a bit on these boards. 
Not many banks do executor accounts any more - Nat West is one, but even that is opened as a 'normal' bank account and you can only change it to an executor one after you have gained probate.

As Olinda99 says, you can just open a new bank account in your own name (or in my case, I cleared down a little used one I already had and used that). You just need to make sure that you keep a good record of the incomings and outgoings, so that in the event of you dying or being unable to continue before the estate is wrapped up someone else can pick it up so that the account contents are known as being a debt owing to the original persons estate. 

toomuchinfo

As said above, not many banks do executor accounts. I was sole executor for my uncle last year, he banked with Nationwide and had a fair bit of money in his accounts. I took a copy of the Will and my ID with me into his branch. They were very good and opened an account for me, transferring his money into it quickly, before probate. I used that new account for all other money from the estate.

fdb66

You don't really need an executors account, any account will do, but it's easier to keep track of things if you use one that's completely seperate.

Getting the money will be very slightly easier if you have a First Direct account as that will save you providing identification documents, but that's hardly worth considering as it's such a minimal saving of effort compared to everything else you'll have to do.

SiliconChip

Just to clarify for some of the previous posters, the OP banks with Nationwide, while the deceased banked with First Direct. It makes sense for a new account (executor account not needed) to be opened at Nationwide, especially as FD's identification procedures are more complicated than most banks, and the only dealings that are needed with FD are for the balance of the deceased's accounts to be transferred to the OP's account, and it makes little difference where the transfer goes to. The only complication is whether FD require probate or if they'll do the transfer just with sight of the death certificate (and possibly the Will).

Raysablade

My understanding may be lacking here but if you use one of your own accounts to carry out disbursements to beneficiaries, will that not count as gifts from you and possibly causing IHT issues if you die within 7 years ?

bobster2

Raysablade said:

My understanding may be lacking here but if you use one of your own accounts to carry out disbursements to beneficiaries, will that not count as gifts from you and possibly causing IHT issues if you die within 7 years ?

Not if you keep records showing that these were not gifts from your own assets. An analogy - say you are administering an estate which includes some valuable oil paintings. Just because you take them to your house to look after for a while before distributing these to beneficiaries - they don't become gifts from you.

JamesRobinson48

Taking Nationwide above as an example, personal applicants for any of their ordinary current accounts must make a Current account declaration which includes the following text:

(c) The money I am investing in this account (which I will not use for business purposes) is my own; 

(Nationwide current account T&Cs booklet, page 47)

Surely, then, using the account for money that is not one's own, for example as executor or trustee, is a breach of T&Cs that could lead to trouble with Nationwide down the road?  Granted the account won't be used for business purposes, however the money in the account is not the executor's personal property. Furthermore, there are various legal constraints on payments from deceased's estates that do not apply when spending one's own money. Perhaps that's why Nationwide feels declaration (c) is needed, i.e. to protect itself from potential misuse of funds.

Also, if money in the account earns any interest, who gets to keep (and pay tax on) that interest:  the named account holder, the estate, or perhaps both?

Maybe I'm splitting hairs or being over-cautious?

A reply on this point from an expert would be sincerely appreciated.  Thanks in advance.