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  • FIRST POST
    • badger09
    • By badger09 8th Mar 18, 8:00 AM
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    badger09
    Executor Account
    • #1
    • 8th Mar 18, 8:00 AM
    Executor Account 8th Mar 18 at 8:00 AM
    Together with my late sister's son in law, I am joint executor of her estate, est net value 250k, including her life interest in her home.

    As I helped her with financial decisions for many years, I am familiar with her finances and will be taking the lead on gathering assets.

    I don't think there is a legal requirement to open an 'Executor' account. Obviously, I need to keep the estate moneys separate, so would like to open an account in my name for that purpose. For ease, this would be with either HSBC or Santander with which we both hold accounts.

    I already operate multiple current accounts with almost all the high street banks and wonder if anyone can see any potential issues. (I am not going to be made bankrupt, and hope not to die during the admin period)

    I don't even have the death certificate yet as there will be a PM, but want to get as much in place as possible.
Page 1
    • TonyMMM
    • By TonyMMM 8th Mar 18, 8:31 AM
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    TonyMMM
    • #2
    • 8th Mar 18, 8:31 AM
    • #2
    • 8th Mar 18, 8:31 AM
    There is no legal requirement to have a separate account - it's up to you. You will probably struggle to get any bank to open an executors account anyway before you have the grant of probate.
    • Yorkshireman99
    • By Yorkshireman99 8th Mar 18, 8:54 AM
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    Yorkshireman99
    • #3
    • 8th Mar 18, 8:54 AM
    • #3
    • 8th Mar 18, 8:54 AM
    There is no legal requirement to have a separate account - it's up to you. You will probably struggle to get any bank to open an executors account anyway before you have the grant of probate.
    Originally posted by TonyMMM
    The problem is that as a trustee, which an executor is, funds are supposed to be kept separate. That is why solicitors have clients accounts.
    • Keep pedalling
    • By Keep pedalling 8th Mar 18, 8:56 AM
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    Keep pedalling
    • #4
    • 8th Mar 18, 8:56 AM
    • #4
    • 8th Mar 18, 8:56 AM
    Most banks are not interested in executor accounts full stop, but as you are not the sole executor Imthink it would be a good idea to have one. Ask her bank if they would set one up.

    In the future I think the main problem with holding multiple accounts is the horrible task that leaves your executors. This is one of the reasons we have greatly simplified our finances. Just 2 banks, no individual shares, and all investments held in a single platform.

    I was registering my mothers death yesterday, and was talking to the registrar about the numbers of copies of death certificates people asked for, her record is currently 40, that was an estate I would not liked to have administered.
    • badger09
    • By badger09 8th Mar 18, 11:16 AM
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    badger09
    • #5
    • 8th Mar 18, 11:16 AM
    • #5
    • 8th Mar 18, 11:16 AM
    Thanks all.

    My co executor is happy for me to gather the estate assets in an account in my name. He works full time, I'm retired and comfortable dealing with financial institutions and government departments (ex Senior Tax Inspector).

    We live 150 miles apart and are both approx 200 miles from where my sister lived and died. For ease of administration, I want online access, which seems to rule out 'Executor' accounts. All I'm trying to establish is whether there are any compelling reasons to set up an Executor account.

    Keep pedalling, condolences on your loss. I'm very aware of the complexity of my affairs, but everything needed to sort out my estate is securely documented, kept updated, and the whereabouts known by my executors. They won't need anything like 40 copies of my death certificate.
    • Savvy_Sue
    • By Savvy_Sue 8th Mar 18, 11:20 AM
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    Savvy_Sue
    • #6
    • 8th Mar 18, 11:20 AM
    • #6
    • 8th Mar 18, 11:20 AM
    FWIW, my co-executor and I opened Executor accounts with both Lloyds and more recently NatWest. The NatWest account was just a 'normal' current account but flagged on their system and in the name as an executors' account. If you're going to open a new account, I'd definitely make it at least joint, and there are advantages to it being an Exec account.

    We made most of the payments via online banking, and both of us could log in and see if the other had done anything unexpected ...

    I know you're not expecting to die, but we all know that unexpected things happen, and at least with a joint account the money won't automatically fall into your estate.

    Cross-posted: my co-executor and I live some distance apart, while our late parents lived in between us. For convenience, we opened the joint account where they'd lived. It was the only thing we needed to meet up for, but I suspect that if you chose a bank to which one of you is already known that you would not need to attend in person - it was the ID checks which made that necessary.
    Last edited by Savvy_Sue; 08-03-2018 at 11:24 AM.
    Still knitting!
    Completed: 1 adult cardigan, 3 baby jumpers, 3 shawls, 1 sweat band, 3 pairs baby bootees,
    1 Wise Man Knitivity figure + 1 sheep, 2 pairs socks, 2 hats 2 balaclavas for seamen, 1 balaclava for myself ...
    Current projects: Poppies, mohair cardigan pattern arrived and going strong!
    • badger09
    • By badger09 8th Mar 18, 12:12 PM
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    badger09
    • #7
    • 8th Mar 18, 12:12 PM
    • #7
    • 8th Mar 18, 12:12 PM
    FWIW, my co-executor and I opened Executor accounts with both Lloyds and more recently NatWest. The NatWest account was just a 'normal' current account but flagged on their system and in the name as an executors' account. If you're going to open a new account, I'd definitely make it at least joint, and there are advantages to it being an Exec account.

    We made most of the payments via online banking, and both of us could log in and see if the other had done anything unexpected ...

    I know you're not expecting to die, but we all know that unexpected things happen, and at least with a joint account the money won't automatically fall into your estate.

    Cross-posted: my co-executor and I live some distance apart, while our late parents lived in between us. For convenience, we opened the joint account where they'd lived. It was the only thing we needed to meet up for, but I suspect that if you chose a bank to which one of you is already known that you would not need to attend in person - it was the ID checks which made that necessary.
    Originally posted by Savvy_Sue
    Thank you so much Savvy_Sue, that is just the sort of 1st hand experience I was looking for. I will discuss with my co executor. I have accounts with both Lloyds & Natwest so will approach them first.

    An account where my sister lived would be the worst for both of us. He is in Hertfordshire, I'm in Shropshire & my sister lived in Devon.

    Can I ask if you opened the 'normal NatWest flagged as an executor' account before you had Probate? In other words, what did NatWest need from you to open that account.
    • Keep pedalling
    • By Keep pedalling 8th Mar 18, 12:54 PM
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    Keep pedalling
    • #8
    • 8th Mar 18, 12:54 PM
    • #8
    • 8th Mar 18, 12:54 PM
    Thank you so much Savvy_Sue, that is just the sort of 1st hand experience I was looking for. I will discuss with my co executor. I have accounts with both Lloyds & Natwest so will approach them first.

    An account where my sister lived would be the worst for both of us. He is in Hertfordshire, I'm in Shropshire & my sister lived in Devon.

    Can I ask if you opened the 'normal NatWest flagged as an executor' account before you had Probate? In other words, what did NatWest need from you to open that account.
    Originally posted by badger09
    An account with your sisters bank would not be based where she lived it can be dealt with at your local branch of that bank. I have an appointment with my nearest Barclays to sort my mothers accounts not the one she always used in a different town.
    • Flugelhorn
    • By Flugelhorn 8th Mar 18, 1:57 PM
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    Flugelhorn
    • #9
    • 8th Mar 18, 1:57 PM
    • #9
    • 8th Mar 18, 1:57 PM
    I opened an exec account before applying for probate, bank opened it same day and was active online was sent card and cheque book in a few days - had had a POA for relatives account at the same bank and bank there myself.
    • lukewarn
    • By lukewarn 8th Mar 18, 2:07 PM
    • 14 Posts
    • 33 Thanks
    lukewarn
    I would avoid Santander. They are pretty hopeless with executor bank a/cs.

    My mother banked with them and so I opened an exec a/c with them when she died.

    There is no online access,no cheque book,no transfers in fact very little of anything .(Even though the bank clerk said there was all the usual banking facilities when I opened it.)

    I have to go to a Santander branch every time I want to make a transaction.

    They made such a mess that I made a complaint and they credited the a/c with 80 for all the inconvenience they created.
    • Flugelhorn
    • By Flugelhorn 8th Mar 18, 2:17 PM
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    Flugelhorn
    RBS seemed to be able to organise it all OK
    • Margot123
    • By Margot123 8th Mar 18, 3:10 PM
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    Margot123
    Having had experience of opening both an executor account and a personal account to administer estates, I can say the main difference is that the personal account was simpler to open and maintain.

    As has already been said, just open a new account in your own name. So long as you keep the estate funds separate to your own money, then there is no issue at all. It's all about keeping clear and visible accounts.
    • Yorkshireman99
    • By Yorkshireman99 8th Mar 18, 3:57 PM
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    Yorkshireman99
    Having had experience of opening both an executor account and a personal account to administer estates, I can say the main difference is that the personal account was simpler to open and maintain.

    As has already been said, just open a new account in your own name. So long as you keep the estate funds separate to your own money, then there is no issue at all. It's all about keeping clear and visible accounts.
    Originally posted by Margot123
    Sorry to sound pedantic but a trustee must never mix funds they hold as a trustee (executor) with their own money. This a breach of their duty as a trustee. It may sound simpler and easier but if something goes wrong then the consequences can be severe. For example if the trustee is suddenly incapacitated, or dies, the funds can become inaccessible for months and recovering them can be costly. That is why solicitors always hold clients money in a client account. It is therefore bad advice to ignore this requirement even though it can be very inconvenient.
    • Savvy_Sue
    • By Savvy_Sue 8th Mar 18, 4:04 PM
    • 38,493 Posts
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    Savvy_Sue
    Can I ask if you opened the 'normal NatWest flagged as an executor' account before you had Probate? In other words, what did NatWest need from you to open that account.
    Originally posted by badger09
    We definitely didn't have probate, so there were limits to what we could do with it, obviously not pay any money out because there wasn't anything in it!

    I can't remember what they wanted to see apart from our own ID, but can't have been more than the will itself.

    We definitely said we wanted an executors' account. It was only on arrival that we realised all the information we were being given related to their normal 'Select' Current account, and I checked this. They assured us it was fine.

    They weren't trouble-free, actually activating the account once we did have funds required several visits to my local branch and they clearly didn't have a clue what was going on. But I don't know that any other bank would have been much better!
    Still knitting!
    Completed: 1 adult cardigan, 3 baby jumpers, 3 shawls, 1 sweat band, 3 pairs baby bootees,
    1 Wise Man Knitivity figure + 1 sheep, 2 pairs socks, 2 hats 2 balaclavas for seamen, 1 balaclava for myself ...
    Current projects: Poppies, mohair cardigan pattern arrived and going strong!
    • badger09
    • By badger09 8th Mar 18, 4:05 PM
    • 5,944 Posts
    • 5,283 Thanks
    badger09
    An account with your sisters bank would not be based where she lived it can be dealt with at your local branch of that bank. I have an appointment with my nearest Barclays to sort my mothers accounts not the one she always used in a different town.
    Originally posted by Keep pedalling
    Sorry, but Savvy_Sue's solution in her situation was to open an account where her parents lived, hence my comment about the location being inconvenient.

    I know accounts can be opened in any location and mentioned HSBC and Santander because both my late sister and I have accounts with them.
    • badger09
    • By badger09 8th Mar 18, 4:09 PM
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    badger09
    I opened an exec account before applying for probate, bank opened it same day and was active online was sent card and cheque book in a few days - had had a POA for relatives account at the same bank and bank there myself.
    Originally posted by Flugelhorn
    RBS seemed to be able to organise it all OK
    Originally posted by Flugelhorn
    Thanks for that.

    RBS & Barclays are (I think) the only banks I don't have a current account with.
    • Margot123
    • By Margot123 8th Mar 18, 4:12 PM
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    Margot123
    Sorry to sound pedantic but a trustee must never mix funds they hold as a trustee (executor) with their own money. This a breach of their duty as a trustee. It may sound simpler and easier but if something goes wrong then the consequences can be severe. For example if the trustee is suddenly incapacitated, or dies, the funds can become inaccessible for months and recovering them can be costly. That is why solicitors always hold clients money in a client account. It is therefore bad advice to ignore this requirement even though it can be very inconvenient.
    Originally posted by Yorkshireman99
    Read again! I did not say that. I said to keep it separate.
    The OP said the other executor was happy with the situation.

    Yes, you can be very pedantic at times YM99 ;-)
    • badger09
    • By badger09 8th Mar 18, 4:13 PM
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    badger09
    We definitely didn't have probate, so there were limits to what we could do with it, obviously not pay any money out because there wasn't anything in it!

    I can't remember what they wanted to see apart from our own ID, but can't have been more than the will itself.

    We definitely said we wanted an executors' account. It was only on arrival that we realised all the information we were being given related to their normal 'Select' Current account, and I checked this. They assured us it was fine.

    They weren't trouble-free, actually activating the account once we did have funds required several visits to my local branch and they clearly didn't have a clue what was going on. But I don't know that any other bank would have been much better!
    Originally posted by Savvy_Sue
    Thanks again. Really useful, and as you say, I suspect local branches of all the banks will be much the same.
    • Yorkshireman99
    • By Yorkshireman99 8th Mar 18, 4:38 PM
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    Yorkshireman99
    Read again! I did not say that. I said to keep it separate.
    The OP said the other executor was happy with the situation.

    Yes, you can be very pedantic at times YM99 ;-)
    Originally posted by Margot123
    You may have missed the point. To meet the requirements of being a trustee the funds MUST be kept entirely separate in an account with the account name such as trustee(s) of X. Opening a separate account in your own name and keeping detailed records does not satisfy the legal requirements AFAIK. If someone can provide definitive proof that it does I shall be happy to concede.
    • badger09
    • By badger09 8th Mar 18, 5:59 PM
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    badger09
    You may have missed the point. To meet the requirements of being a trustee the funds MUST be kept entirely separate in an account with the account name such as trustee(s) of X. Opening a separate account in your own name and keeping detailed records does not satisfy the legal requirements AFAIK. If someone can provide definitive proof that it does I shall be happy to concede.
    Originally posted by Yorkshireman99
    With respect to you and to others who have posted, I have searched and been unable to find a definitive answer, which is why I posted this


    ...............

    I don't think there is a legal requirement to open an 'Executor' account. Obviously, I need to keep the estate moneys separate, so would like to open an account in my name for that purpose. ........
    Originally posted by badger09
    If you can provide definitive proof of what you say, I would be really grateful.
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