Independent Executor Bank Account

HappyScotsman

To date I have handled estate expenses via a personal non-interest bearing bank account in my name.

I expect Probate to be granted shortly and a significant sum will be deposited. Ideally I'd like to move the funds to an interest bearing account which would be completely distinct from my own finances. That way I can show HMRC that the interest earned is estate income and not my own.

Do banks open accounts under the name "Executors of ..." or is it just down to me keeping sufficient records should there be a query?

Keep_pedalling

Finding a bank that provides executor accounts is difficult enough, finding one that pays interest is likely to be mission impossible. Personally I would stick to the account you are already using and minimise the time that it is in there by distribution it to the beneficiaries ASAP. 

p00hsticks

HappyScotsman said:

Do banks open accounts under the name "Executors of ..." or is it just down to me keeping sufficient records should there be a query?

From experience five years ago, Nat West do - or rather you open an account in your personal name, and they'll change it to one under the name  'Executors of ... ' once you have probate - you need to go into a branch and show ID, grant of probate and possibly a copy of the will. But they won't pay interest.  

he only reason I did it rather than keep to using a separate personal account is that the conveyancer for the property sale was insistent that the sale proceeds  had to go into an executor account, as I wasn't a residual beneficiary. 

TonyMMM

I had no problem opening an executor account with Barclays a couple of years ago.....although the fact that the deceased had an account with them may have helped.

Shedman

I used a Lloyds account and, as Lloyds allow you to rename accounts, called it "Re Executor - Joe Bloggs Estate" (obviously name of deceased and not Joe Bloggs of course) so that there was some form of evidence it wasn't just my personal account should HMRC raise any questions.  Clearly you can do the same with other banks that allow account renaming or account nicknames.

bunnygo

I'm about to face this problem - looks like you can only have an executor account once you have probate, which isn't very helpful. I'm also going to receive a cheque which I think is going to arrive too late....it's all extra hassle!

poseidon1

HappyScotsman said:

To date I have handled estate expenses via a personal non-interest bearing bank account in my name.

I expect Probate to be granted shortly and a significant sum will be deposited. Ideally I'd like to move the funds to an interest bearing account which would be completely distinct from my own finances. That way I can show HMRC that the interest earned is estate income and not my own.

Do banks open accounts under the name "Executors of ..." or is it just down to me keeping sufficient records should there be a query?

See thread below in respect of your own personal tax affairs possibly being entangled with the estate, if you do not set up a clearly designated interest bearing estate account. I accept, however this is easier said than done in reality. The high street banks on the whole appear to be increasingly unhelpful.

https://forums.moneysavingexpert.com/discussion/6584894/tax-on-interest#latest

bobster2

During the administration period for some estates (not all) it is necessary to register a will trust with the trust registration service. And then file a self-assessment tax return for the will trust - where you would report any interest.

As the executor - I think I needed to provide my NI number when doing this registration.

So if the bank reports to HMRC the amount of interest earned on all my accounts - linked to my NI number - it would be quite straightforward to show how I reported some of this interest on the will trust self-assessment return and the rest on my own self-assessment return.

I guess it's trickier if the estate isn't registered with the TRS (because it doesn't need to be).