Executor account query
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This is exactly what I have done. I opened an everyday current account with Santander, with whom I and my late sister both banked.
I funded the account initially with £1k for immediate needs and withdrew £1k as soon as funds were available. Apart from that, everything estate related goes into or comes out of that account. So far, this has worked very well.
My co-executor is happy for me to deal with the estate and is not a signatory to the account. I update him regularly and he can see scanned bank statements whenever he wants.
Once Probate is granted there will be more substantial funds arriving and when I have distributed them I will close the account.
But what happens if you die when the substantial funds are in but not yet distributed? Co-executor can't get it out until your own estate is wrapped up, & would that money being in an ordinary a/c in your sole name make your own estate more complex?Seen it all, done it all, can't remember most of it.0 -
SevenOfNine wrote: »But what happens if you die when the substantial funds are in but not yet distributed? Co-executor can't get it out until your own estate is wrapped up, & would that money being in an ordinary a/c in your sole name make your own estate more complex?
That is a very remote possibility.
I suppose similar rules would apply if there was only one acting executor, and the other had 'reserved'.
The one who would then have to apply for 'double Probate' must have to prove the source of the funds somehow.
Interesting question but not seen anything to clarify what would happen in the circumstances.0 -
SevenOfNine wrote: »But what happens if you die when the substantial funds are in but not yet distributed? Co-executor can't get it out until your own estate is wrapped up, & would that money being in an ordinary a/c in your sole name make your own estate more complex?
As Margot123 says, that is a very remote possibility, I hope. I'll leave a note in my paperwork to ensure my executors let this board know how they dealt with it :cool:That is a very remote possibility.
I suppose similar rules would apply if there was only one acting executor, and the other had 'reserved'.
The one who would then have to apply for 'double Probate' must have to prove the source of the funds somehow.
Interesting question but not seen anything to clarify what would happen in the circumstances.
My co executor has reserved. There is a very clear audit trail showing the source, and destination of every penny received and paid out. The beneficiaries would have to wait a little longer for their inheritance but I really don't see that my estate is more complex merely because I didn't open a designated 'executor account'.0 -
highland_walker wrote: »Does anyone know if when you open an executor account with a bank, do all the executors of the will have to sign up to the account / give their details to the bank or can one executor act alone and set it up without the others? For instance, if there were 3 executors, would they all have to go into the bank at the same time to sort it out? Or could just one of the executors go in and sort it out without the others?
Also, is it possible to set up an executor account before you do probate or only after it is done?
Hope someone can help.
I have been in this situation, and had no difficulty in opening an Executor account with Nationwide. However, before this we had obtained probate and I was named as the sole "proving executor".0 -
As Margot123 says, that is a very remote possibility, I hope. I'll leave a note in my paperwork to ensure my executors let this board know how they dealt with it :cool:
Fingers crossed for your survival badger09
We did as you have, the estate funds went into an new bank a/c with Lloyds in my husband's sole name & nearly £300k went in. There was a co-executor but we didn't bother consulting him (enough said about that imbecile).
I wondered what problems there could be for me if anything happened to husband before (or even up to 7 years after) distribution & a/c being closed. How would this all be explained when completing probate tax forms on his demise?
Doesn't seem to be a definitive answer other than an executor's a/c being preferable, but perhaps you're right & a good paper trail would be enough, though possibly causing delays with HMRC being slow enough without factoring that in, particularly if there might already be an IHT liability.
Sorry OP for drifting off topic in your thread.Seen it all, done it all, can't remember most of it.0 -
SevenOfNine wrote: »Fingers crossed for your survival badger09
We did as you have, the estate funds went into an new bank a/c with Lloyds in my husband's sole name & nearly £300k went in. There was a co-executor but we didn't bother consulting him (enough said about that imbecile).
I wondered what problems there could be for me if anything happened to husband before (or even up to 7 years after) distribution & a/c being closed. How would this all be explained when completing probate tax forms on his demise?
Doesn't seem to be a definitive answer other than an executor's a/c being preferable, but perhaps you're right & a good paper trail would be enough, though possibly causing delays with HMRC being slow enough without factoring that in, particularly if there might already be an IHT liability.
Sorry OP for drifting off topic in your thread.
Thanks SevenOfNine
Hope I don't end up as roadkill:eek: before I can distribute the estate funds.
As a retired Senior Tax Inspector, I'm reasonably confident my record keeping would satisfy HMRC;)
In their defence, they have been one of the quickest links in my Probate chain. DWP holds the wooden spoon, with Birmingham District Probate Registry a close 2nd, so far...
My apologies to OP also0 -
From my experience HMRC & mother's care home (office not carers) hold the joint wooden spoon. Before my mother's death despite having sent every other piece of paper to my address as POA they sent a cheque refund from the previouos tax year to her care home. The care home gave me the letter, opened of course, 4 weeks after they received it - after I had chased it with HMRC a week after her death. Then I had to wait the requisite number of days before HMRC could reissue the cheque - no problem with that at all. It did mean though that that money was the very last bit to be distributed.
All the money, with my sister's approval, was transferred to one of my personal accounts & back out again before midnight. Well apart from once when it was too much to transfer in one day so went just after midnight.0 -
Well thanks for all your replies here. Seems that an executor account is not always necessary.
I went into Nationwide yesterday and they told me they don't do one - they can only open a savings account and the deceased has to have been a customer there. And as it's just a normal savings account, only one executor needs to open it / sign for it. So something like that sounds like the easiest option.0 -
highland_walker wrote: »Well thanks for all your replies here. Seems that an executor account is not always necessary.
I went into Nationwide yesterday and they told me they don't do one - they can only open a savings account and the deceased has to have been a customer there. And as it's just a normal savings account, only one executor needs to open it / sign for it. So something like that sounds like the easiest option.
The problem with a simple savings account is that when you have to make payments out, you may have to route the estate money through one of your current accounts anyway.
In my opinion, and I'm no expert:o an additional current account with one of your existing banks, in your own name, with online access and a cheque book offers the simplest solution.
Good luck0 -
SevenOfNine wrote: »But what happens if you die when the substantial funds are in but not yet distributed? Co-executor can't get it out until your own estate is wrapped up, & would that money being in an ordinary a/c in your sole name make your own estate more complex?
The funds are held as a trust for the beneficial owner which is the estate of the deceased you are holding the money for
They don't count towards the estate of the legal owner should they die.0
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