Executor's bank account

nwc389

Open a separate account in your name and pay the cheques in there, keep a careful record of the cheques and where they came from so when you need to distribute the estate you can show other beneficiaries a clear paper trail of the transactions .

henm2

HSBC will definitely open an Executors account before Grant of Probate, even if you have no existing banking relationship with them.
They will need to see a copy of the will and each executor will need to call into the branch with ID (usually current passport/driving licence and separate document such as recent utility bill or bank statement to confirm address).If you have no existing personal bank account with them they will also usually examine 3 months worth of your recent personal banking statements as they will only open an account if your own banking arrangements are usually in order.
Cheques and other payments can go in immediately once the account is opened but payments out will have to wait for probate.
The account is classed by HSBC as a business account but is opened on free banking terms (provided it is run in credit)
Executors accounts are usually by their nature short term and tend to run for less than 6 months and are closed once the estate has been dispersed to the beneficiaries. (Delays in selling property for example will result in the need for the account for much longer)
If there is an ongoing requirement for an account after the initial settling of the estate such as for example a beneficiary in the will having a lifetime benefit only re income on investments held under the estate then the bank will convert the Executors account to a Trust account to cover the payments in and out for that.
By the way applying for Probate is not complicated. Just fill in the Forms PA1 and IHT205 (google for the forms and download)and send them off completed to a local probate office

dr_adidas01

By the way applying for Probate is not complicated. Just fill in the Forms PA1 and IHT205 (google for the forms and download)and send them off completed to a local probate office[/QUOTE]

Yes applying for probate is very simple, however I can tell you have possibly never dealt with the reality of it.

It can takes months for the probate to go through and it can be very stressful to deal with while your waiting!!!!

amold

dr_adidas01 wrote: »

So how are you going to get the money out of your fathers account if you can't take any money out. Whom is this bank and have you spoken to them about opening an account?

I didn't say to use your fathers account, I said you have to open a new account in your fathers name as an executors account.

As stated you legally have to keep any money from your fathers estate separate so that if any claims on the estate are made they can be paid and an audited record can be kept for HMRC.

Have you not been into the banks and checked to see what there requirements for opening an executors accounts actually are.

The reason HSBC are usually recommended is because they do actually have a specialist team who deal with this kind of issue.

I get access to my fathers account once probate is granted.
Bank is Barclay's, and they will not let me open an executors account until I have the grant of probate, which will take 6 months at least.

I know you meant open an account as executor for my father. But this will take six months at least as they all require a grant of probate.

I have been into Barclay's, the Co operative Lloyd’s Nat West, which is why I know they will not allow me to open an account until I have a grant of probate.

So my question is still un answered. What do I do with the cheques that I have now. As I said this cannot be the first time this has happened.

amold

actually I see henm2 has answered. I open an account at HSBC, but I will have to get the cheques re issued as they are all in my name

henm2

Every case is different and if an estate is large and complicated (complex Trusts) then probably best left to an expert i.e solicitors. Also it will take a long time for Probate to complete

However most estates are simple and straightfoward and although the Probate forms look at first glance frightening they are actually easy to complete.

My own experience is helping my mother apply for Grant of Letters of Administration (estate with no will) long before the days of the internet and much more recently two cases of applying for Grant of Probate (where Will was held). The probate fee in each case was less than £100 (big saving on the £000s charged by solicitors for their work) and Grant received within 6 weeks from sending the forms off.

Also in each case an Executors account was not needed as managed to sort the estate out without one. Obviously if cheques had come through payable 'Executors of ... ... deceased' we would have had to open an account.

JulyKnot

dr_adidas01 wrote: »

If you pay any cheques into your own bank account that are from your fathers estate and there are other beneficiaries to his estate. It can leave you open to claims of fraud against the estate and also possibly other beneficiaries may decide you have pocked the cash illegally.

You are being unnecessarily alarmist.
As long as the funds are included in the accounts, there should be no problem.

JulyKnot

amold wrote: »

So my question is still un answered. What do I do with the cheques that I have now. As I said this cannot be the first time this has happened.

If in your name, pay them in. Optionally, take a copy first.

dr_adidas01

JulyKnot wrote: »

You are being unnecessarily alarmist.
As long as the funds are included in the accounts, there should be no problem.

No I'm not its better that its all separate and accountable, far easier to explain to HMRC. Plus other beneficiaries can't say you have used the funds and are not paying them what there due.

When it comes to this issue especially when family are involved its better to be safe than sorry, death can bring out the worse in people especially family!!!!

JulyKnot

You are talking textbook ideal . Life just doesn't work like that as the OP has found out.

You are over- complicating matters.

Simply keep clear records of everything ( ie audit trail) which will work for feuding families or HMRC ( who are very understanding).
Op could even include a covering letter to HMRC if that makes him or her feel happier.
Far better than writing back to everybody and asking them to write new cheques in a few months time.