Executor advice needed: Handling bonds and ISAs before probate is granted

DandelionBlue

Hi all,
I’m acting as an executor for a relative’s estate and we’re currently gathering date-of-death valuations before applying for probate.
The deceased held a couple of fixed-rate savings bonds and cash ISAs with a bank. The provider has asked whether we’d like to:
Close them now and release the funds to the estate, or
Keep them open so they continue earning interest (they’ve said fixed-rate bonds can remain until maturity and ISAs can stay open for up to 3 years during administration).
There’s no urgent need for liquidity at the moment, and probate hasn’t yet been granted.
From an executor perspective, is there any reason we should close them now? Or is it generally considered sensible to leave fixed-rate cash products in place until probate is granted and the full estate position is clearer?
I’d be grateful for views on:
Whether keeping them open creates complications later
Any estate income tax reporting issues
Any risks I might not be thinking about
Just trying to take the most sensible and low-risk approach. Thanks in advance.

poseidon1

Absolutely sensible to maximise the return for the estate, by keeping the interest bearing accounts in play for the benefit of the beneficiaries concerned.

The ability to replace those accounts with new designated interest bearing executor's accounts will be very limited, and the rate currently being achieved by the fixed interest accounts could well be higher than that now available in the current falling interest rate environment.

Just bear in mind with regard to the non isa accounts the requirement to pay income tax on income exceeding the £500 annual de minimis.