Executor's bank account

jonesMUFCforever

ShelfStacker wrote: »

For legal purposes, interest is usually charged at a rate of 8%, and as a solicitor they should fully know that. Go round and have words.

What you have quoted is interest on debt - not credit interest.

I know of nobody that offers anywhere near 8% gross credit interest.

ShelfStacker_3

jonesMUFCforever wrote: »

What you have quoted is interest on debt - not credit interest.

I know of nobody that offers anywhere near 8% gross credit interest.

Alliance and Leicester? 8% Premier Direct Account, 10% Premier ISA. Or HSBC Bank Account Plus, 8% credit.

Technically, the solicitor could be said as owing the money, thus making it a debt. COULD be construed that way, I'd guess. But at the very least the OP should ask for the money at the base rate.

jonesMUFCforever

I knew somebody would contradict me. None of those accounts would be suitable for a solicitors client call account where all law firms have to deposit clients money.
You certainly could not bung it into a 10% Premier ISA could you?

ShelfStacker_3

jonesMUFCforever wrote: »

I knew somebody would contradict me. None of those accounts would be suitable for a solicitors client call account where all law firms have to deposit clients money.
You certainly could not bung it into a 10% Premier ISA could you?

No, but the point is that it IS possible to get that rate and that in legal situations and certainly in all compensation given by the Financial Ombudsman Service the interest added is at the rate of 8%.

robertjonesuk

you can open executors account in barclays. you can open current acc and saving account. you will need to provide grant of probate and all executors must provide id (such as pp or d/l plus confirmation of the address if you don't hold uk pp).

it is best to book an appt first. the process should take around 30 mins in the branch and then 7 working days as this account is opened centrally.

Miss_lorenzo

Have been reading these posts with interest as my sister & myself are in a similar position. We have inherited a small field which has bene given a high probate valuation. The whole probate situation has been made extremely difficult as Dad's former companion seems to have lost most of his paperwork or has refused to let us have it. We have already found evidence of her signing cheques in Dad's name and also taking money from his account when he was seriously ill in hospital. That aside, we need to find a good home for the balance of money that we do have at present as HMRC have allowed us to pay the IHT over 10 years. They are charging 5% interest on what is owed so we need to find a good account for us as executors of the estate to leave the money in - hopefully at a higher interest rate. At the moment it's languishing in the solicitors' account at only 3.6% so it's rapidly losing value as we speak. Has anyone else found a bank that can operate a current account for executors as well as a good interest earning savings account or bond that we could use for this purpose?

Mikeyorks

Miss_lorenzo wrote: »

1) HMRC have allowed us to pay the IHT over 10 years.
2) Has anyone else found a bank that can operate a current account for executors as well as a good interest earning savings account or bond that we could use for this purpose?

1) The 10 years is surely mitigated by the fact the IHT is instantly payable if the asset(s) giving rise to the IHT are disposed of?

2) I think you will struggle. Most Executor accounts and any linked deposit accounts tend to run around the 3% - 4% gross mark. It's also difficult to open such an account if either you / your Dad had no previous financial association with the Bank.

peter999

You can take over the Deceased's accounts & convert into Executors accounts, just by changing the names on it.

Probably easiest 1st step, then later open/transfer to a new account.

Put large amount of money in Bond or similiar high interest account, have the interest paid away into another EXRS account for instant access.

Admittedly I dealt with it all & solicitors never touched the money, so I had all paperwork, history of accounts etc. to take over.

Had to check banks/building societies setup things correctly, as many bank employees don't know what they are talking about & can make mistakes.

Dealing with same bank who know situation is always easier.

peter999

Mikeyorks

peter999 wrote: »

You can take over the Deceased's accounts & convert into Executors accounts, just by changing the names on it.

Can you do that? I didn't know it was possible ... and it seems fraught by impracticalities. The accounts are frozen on notification of death (assuming not joint), DDs and SOs are deleted by the Bank .... so I don't know how you can simply re-open them in a different name. And you confuse the liquidity / tax position between the estate / Executor by failing to have a clean break on the monetary assets.

Doesn't sound a practical way forward even if it's capable of being achieved?

jonesMUFCforever

Mikeyorks wrote: »

Can you do that? I didn't know it was possible ... and it seems fraught by impracticalities. The accounts are frozen on notification of death (assuming not joint), DDs and SOs are deleted by the Bank .... so I don't know how you can simply re-open them in a different name. And you confuse the liquidity / tax position between the estate / Executor by failing to have a clean break on the monetary assets.

Doesn't sound a practical way forward even if it's capable of being achieved?

In my opinion NO you cannot do that.

The only time when an account continues is when it is a joint account where the account transfers to the survivour.