Executor's bank account

dzug1

alared wrote: »

Not applicable in this case but if someone asked you to be an executor wouldn`t opening a joint account with them be an easy way around this problem?

An old post - but nooooo - that's a very neat way of stealing their money. When they die the money's yours as survivor and you can ignore their will.

tizzyj

I am administering my late mother's estate. She had savings with the NatWest and her current account was with Alliance and Leicester. I have been with the Nat West for 40 years and I have to say that they have been brilliant. Executors account set up and funeral costs paid....all done with the minimum fuss and it has been linked to my current account so I can use online banking if need be.

Unfortunately I cannot say the same about Alliance and Leicester and Santander who she also had savings with.....absolute nightmare to deal with. Hope this helps.

fdlf666

My late aunt banked with Barclays (main accounts) and Lloyds.

As we the Executors didn't bank with Lloyds they couldn't open an Executors Account for us.

Barclays would only open an Executors account for us when we had the Grant of Probate which may have taken some time.
We had some income and also some bills to pay at the time. Barclays suggested that we open an account in our joint names, we

Went to HSBC and they opened an Executors Account within minutes, together with a savings account ready to go. All legal and above board.
Have received plenty of free advice from HSBC.
Thoroughly reccomend.

jonesMUFCforever

fdlf666 wrote: »

My late aunt banked with Barclays (main accounts) and Lloyds.

As we the Executors didn't bank with Lloyds they couldn't open an Executors Account for us.

Barclays would only open an Executors account for us when we had the Grant of Probate which may have taken some time.
We had some income and also some bills to pay at the time. Barclays suggested that we open an account in our joint names, we

Went to HSBC and they opened an Executors Account within minutes, together with a savings account ready to go. All legal and above board.
Have received plenty of free advice from HSBC.
Thoroughly reccomend.

How can it be legal to open an Executor's account without Probate?
Are you sure it was not a Personal representative account?

barak

jonesMUFCforever wrote: »

How can it be legal to open an Executors' account without Probate?

I think you'll find it is, although as stated above not all banks are helpful. You would need originals or certified copies of the Death Certificate and the Will.

Executors' responsibilities for the administration of an estate start immediately following a death. As fdlf666 said - "We had some income and also some bills to pay at the time." The deceased's bank account should have been frozen but you can credit an executors' account with cheques payable either to the deceased or to the executor.

jonesMUFCforever

barak wrote: »

I think you'll find it is, although as stated above not all banks are helpful. You would need originals or certified copies of the Death Certificate and the Will.

Executors' responsibilities for the administration of an estate start immediately following a death. As fdlf666 said - "We had some income and also some bills to pay at the time." The deceased's bank account should have been frozen but you can credit an executors' account with cheques payable either to the deceased or to the executor.

...........But pay bills before Probate?
Until Probate is granted you have no authority to act.
Until Probate has been granted you could have say 3 executors each with a different version of the will - how does the bank know if it is the last or proper one?

barak

jonesMUFCforever wrote: »

...........But pay bills before Probate?
Until Probate is granted you have no authority to act.

You are correct in that you have no authority to distribute assets, but you have a duty to look after the estate's assets until probate is granted. This can involve receiving and making payments. There is nothing illegal about that. I have done it - and on this thread others have told us that they have done it.

See the following [para 7 re. opening executors' bank account]
http://www.lawpack.co.uk/wills/articles/article1583.asp

Biggles

barak wrote: »

You are correct in that you have no authority to distribute assets, but you have a duty to look after the estate's assets until probate is granted. This can involve receiving and making payments

Receiving payments, yes. But I'm in some doubt as to whether a bank is correct to allow the making of payments (exceptions such as the funeral directors are normally paid directly by the bank).

The checklist in your link has 'pay any debts' way down the list, long after 'grant of probate'.

barak

Biggles wrote: »

Receiving payments, yes. But I'm in some doubt as to whether a bank is correct to allow the making of payments (exceptions such as the funeral directors are normally paid directly by the bank).

The checklist in your link has 'pay any debts' way down the list, long after 'grant of probate'.

It really isn't anything the bank needs to be concerned about, because they know that the executors wouldn't have been able to access any of the deceased's assets without producing the Grant of Probate. The account would initially only be used to look after the estate before the Grant of Probate. The Will is not effective until Grant of Probate and none of the assets will be touched until then - the one usual exception, as you say, being funeral expenses which banks normally agree to settle from the deceased's frozen bank account.

I think the check list's mention of 'pay any debts' is referring to debts outstanding at the date of death. I'm referring to executor's expenses incurred following a death.

For example, the check list includes -
"5. Secure the house and/or other property of the deceased, insuring the house, car and any other valuable items as necessary."

A premium to insure the house - would not be paid from the deceased's assets, but from the executor's account, as later might any Inheritance Tax due - probably funded by a loan. These 'expenses' would only be 'refunded' from the estate's assets following Grant of Probate.

I only responded to this thread because it was implied that opening an executor's account before Grant of Probate might be illegal. I've tried to explain why I'm sure it isn't and how it can be very useful in some cases.

deeplyblue

jonesMUFCforever wrote: »

...........But pay bills before Probate?
Until Probate is granted you have no authority to act.
Until Probate has been granted you could have say 3 executors each with a different version of the will - how does the bank know if it is the last or proper one?

One bill has been mentioned as "payable" - the funeral director's bill. This is one good reason to put all the funeral expenses on that bill (e.g. reception afterwards, payment to officiating clergy or eulogist).

Certain other debits can be made on an account - the state will claw back any overpaid pension from the bank account, like it or lump it. The same is usually true of private pensions (though any underpaid pension will probably need claiming separately - don't rely on them contacting you!)

It's possible that other sums can be paid out. For example, if the deceased had a large credit card bill, and probate took months then the bill could become much larger, and you could even get into "debt collector" country. So I would guess that most banks would - if there were sufficient funds in the account - allow for perhaps the minimum monthly payment to be made.

It would be interesting to see what would happen if, for example, the deceased was paying the care home fees for an elderly relative. The care home might be prepared to wait until probate had been granted before insisting on the fees being paid. OTOH if you had someone who had died either intestate or with a problematic will, then the care home might not be prepared to wait months or even years whilst the estate was sorted out. It's an interesting question.

What the bank can do, until probate is granted, is to receive payments being made automatically to the account (e.g share dividends). It is only once probate has been granted that the account has to be closed - or at least is that is what we were told by Barclays. If their competence in other matters is any guide, they could easily have been wrong about that too.

db