Executor's bank account - standard joint account, or will that cause complications?
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The downside of a joint account is linked finances and credit records.
If the beneficiaries are minors the trust exist automatically.
you just need to understand what sort of trust the will has created.
There is no legal requirement to keep the money separate just you need to keep track and that is easier in an account set up for that purpose.
You can always have an executor account and fund another account with on-line facilities from the exec account.0 -
An executors account identifies the funds as belonging to a third party. If they are in an ordinary joint account there could be complications if one of the account holders was to pass away as it could be argued that the assets in the account belonged to the deceased rather than the original person who had died.
In my experience potential inheritances bring out the worst in some people! Try Nat West as already stated - their Executor account has online access.0 -
Sound advice. Executors who mix their own funds with the estate's do it at their peril. Advice to the contrary is simply wrong.bouncydog1 wrote: »An executors account identifies the funds as belonging to a third party. If they are in an ordinary joint account there could be complications if one of the account holders was to pass away as it could be argued that the assets in the account belonged to the deceased rather than the original person who had died.
In my experience potential inheritances bring out the worst in some people! Try Nat West as already stated - their Executor account has online access.0 -
I read this with interest. My fellow executor and I have just set up an executors' account with NatWest to collect in the deceased's savings from third party institutions. As we had obtained probate ourselves (ie without professional input), we agreed that we should *both* sign any cheque or authorise any payment from the account, really as a means of protecting ourselves.
NatWest had originally indicated that we would be able to have online facilities and that there was a function by which one of us could set up an online payment and the other subsequently log in and authorise it. Now that we have the account, this seems not to be the case and we have decided there is no point even asking them for online banking. This means that for overseas payments we will both have to attend a branch in order to initiate/authorise any payment. So just think carefully if you opt for dual authorisation on an account.
Secondly, and I hope this is temporary, NatWest seem to have succeeded in turning the account into an "ordinary" account. We received a cheque payable to "The Trustees of [Deceased Person]" with the account name clearly shown. NatWest are unable to pay it in because they say the account is not an executor account! Frustrating! We used the account opening form that they gave us to complete, so I cannot understand this. In their court at the moment!
In passing, I agree with the observation about inconsistency among financial institutions. Some want proof of ID, some don't . Some send a cheque, some prefer to make a transfer. Some have one claim form and will identify linked accounts themselves, some (ahem, NS&I) require a separate and slightly different form for each account type. All in all, a voyage of discovery.0 -
Don't be fobbed of by the lower echelons of the bank staff. Go higher up and complain firmly.I read this with interest. My fellow executor and I have just set up an executors' account with NatWest to collect in the deceased's savings from third party institutions. As we had obtained probate ourselves (ie without professional input), we agreed that we should *both* sign any cheque or authorise any payment from the account, really as a means of protecting ourselves.
NatWest had originally indicated that we would be able to have online facilities and that there was a function by which one of us could set up an online payment and the other subsequently log in and authorise it. Now that we have the account, this seems not to be the case and we have decided there is no point even asking them for online banking. This means that for overseas payments we will both have to attend a branch in order to initiate/authorise any payment. So just think carefully if you opt for dual authorisation on an account.
Secondly, and I hope this is temporary, NatWest seem to have succeeded in turning the account into an "ordinary" account. We received a cheque payable to "The Trustees of [Deceased Person]" with the account name clearly shown. NatWest are unable to pay it in because they say the account is not an executor account! Frustrating! We used the account opening form that they gave us to complete, so I cannot understand this. In their court at the moment!
In passing, I agree with the observation about inconsistency among financial institutions. Some want proof of ID, some don't . Some send a cheque, some prefer to make a transfer. Some have one claim form and will identify linked accounts themselves, some (ahem, NS&I) require a separate and slightly different form for each account type. All in all, a voyage of discovery.0 -
Ah yes, NatWest!NatWest had originally indicated that we would be able to have online facilities and that there was a function by which one of us could set up an online payment and the other subsequently log in and authorise it. Now that we have the account, this seems not to be the case and we have decided there is no point even asking them for online banking. This means that for overseas payments we will both have to attend a branch in order to initiate/authorise any payment. So just think carefully if you opt for dual authorisation on an account.
Secondly, and I hope this is temporary, NatWest seem to have succeeded in turning the account into an "ordinary" account. We received a cheque payable to "The Trustees of [Deceased Person]" with the account name clearly shown. NatWest are unable to pay it in because they say the account is not an executor account! Frustrating! We used the account opening form that they gave us to complete, so I cannot understand this. In their court at the moment!
They do offer online banking, but the 'Executors' Account' is a standard current account apart from the name, and they can be completely useless.
However, I wouldn't rule out internet banking: OK so they don't offer the dual authority, but if you can both logon and see what's happened, how much does that really matter? (I am assuming you trust each other ...)
Also do raise this issue of 'can't pay cheque in': I had an online chat with them about similar issues, and the difficulties we had making the account 'live' once we'd paid in the first cheques, and got £50 as a result.Signature removed for peace of mind0 -
Barclays, Halifax & Nationwide all told us that an executors account was unnecessary. To be honest I was a little shocked as we were talking over £200K. All banks etc paid into my personal account either with Halifax or Nationwide & I just passed on 50% to my sister. She was there & agreed to that but we were both surprised that it could be so easy. Although I am sure that the requirements are more stringent (or should be) if you have under 18s involved0
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I think the key thing here is to keep the estate finances separate to your own. That way, you can show clear and accurate records of all incomings and outgoings.
Also, it's advisable to issue cheques when making payments for utitlites etc, and then to the beneficiaries.
As long as there is a 'paper trail' you should be fine.0 -
I think an executors account is the way to go and as somebody else has suggested, dont be banboozled by poorly trained junior banking staff who are often quite ignorant of their own bank’s procedures for handling the probate process. Go straight to the manager and tell him/her what you want to do. Just a word of warning. in a executors account we were handling, Barclays actually closed down an executors account without notice and turned it into a dormant account because there had been no activity on it for three years. This had been due to the difficulty of tracing a beneficiary and family problems in setting up a memorial gravestone which delayed the process so if you need to have the account operational for a while before you can finally close it down, flag this up at the time.0
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I believe this issue is down to how much trust there is between the executors and the beneficiaries & also whether they communicate. For instance, we both had a list of accounts with the approx amounts in each. I had been POA so that part was easy (I should add here that although I had POA I kept her fully up to date with any transactions). I would then email her when I received money into my account, telling her how much & where from & how much the bank would allow me to transfer that day which I would do immediately if it had cleared.
I then used to ring her & ask her to check her bank as I had transferred money to her & ask her to check its arrival. This was all easy because firstly we trust each other & secondly because there were no debts to come out of the woodwork. I used to keep a spreadsheet showing expected amounts, received amounts & distributed amounts & I would email that too each time.
The problem is when a beneficiary doesn't trust the executor/s. If they don't then you can have a dozen executor's accounts & they will still think you have not given them their full share.0
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