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  • FIRST POST
    • badger09
    • By badger09 8th Mar 18, 8:00 AM
    • 5,944Posts
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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 2
    • Tom99
    • By Tom99 8th Mar 18, 6:53 PM
    • 2,063 Posts
    • 1,388 Thanks
    Tom99
    I am not aware of any law which would legally prevent an executor mixing estate money with their own if that's the way they choose to go about it.

    Often the estate will be out of pocket to start with, particularly if the 1st instalment of inheritance tax has to be paid before, say, the house can be sold.
    • Yorkshireman99
    • By Yorkshireman99 8th Mar 18, 7:35 PM
    • 4,117 Posts
    • 3,371 Thanks
    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




    If you can provide definitive proof of what you say, I would be really grateful.
    Originally posted by badger09
    You need to search for rules on trusteeship, and self dealing. .I will try and check tomorrow.
    • badger09
    • By badger09 9th Mar 18, 7:34 AM
    • 5,944 Posts
    • 5,283 Thanks
    badger09
    You need to search for rules on trusteeship, and self dealing. .I will try and check tomorrow.
    Originally posted by Yorkshireman99
    Thanks, I really appreciate your help. I'll add it to my list of things to research today.
    • AnotherJoe
    • By AnotherJoe 9th Mar 18, 8:04 AM
    • 9,374 Posts
    • 10,340 Thanks
    AnotherJoe
    As it happens I opened an executor account yesterday. We tried three banks, Lloyds, Barclays and Santander. All three would only open one if either the deceased or an executor already had an account with them and I'm guessing this would turn out to be a general practice they all follow.

    This excluded Lloyd's for us, we ended up with Santander as they could do an ad hoc meeting and open it there and then whereas Barclays couldn't make an appointment for 3 weeks.

    The guy at Santander said that it was quite rare for people to open executor accounts so I suppose most people must just use their own accounts, whatever the theoretical rules. Like a previous poster I suspect there isn't actually a law that says you must have a seperate account.

    As Lukewarm said, the Santander account is very restricted but for us that's not an issue as there will be very few transactions in or out and one of us lives very close to the Santander branch. The RBS one does sound better with cheque book online access and card etc but we wouldn't be applicable for it assuming they also have the restriction regards deceased or executor having an account with them,
    Last edited by AnotherJoe; 09-03-2018 at 8:12 AM.
    • badger09
    • By badger09 9th Mar 18, 8:19 AM
    • 5,944 Posts
    • 5,283 Thanks
    badger09
    You need to search for rules on trusteeship, and self dealing. .I will try and check tomorrow.
    Originally posted by Yorkshireman99
    To be clear, there is no trust set up under my sister's will and both the beneficiaries are adults.

    I do understand the similarities between the roles of executor & trustee but none of the articles I've looked at on trusteeship & self dealing, mention executors administering an estate.
    • badger09
    • By badger09 9th Mar 18, 8:22 AM
    • 5,944 Posts
    • 5,283 Thanks
    badger09
    As it happens I opened an executor account yesterday. We tried three banks, Lloyds, Barclays and Santander. All three would only open one if either the deceased or an executor already had an account with them and I'm guessing this would turn out to be a general practice they all follow.

    This excluded Lloyd's for us, we ended up with Santander as they could do an ad hoc meeting and open it there and then whereas Barclays couldn't make an appointment for 3 weeks.

    The guy at Santander said that it was quite rare for people to open executor accounts so I suppose most people must just use their own accounts, whatever the theoretical rules. Like a previous poster I suspect there isn't actually a law that says you must have a seperate account.

    As Lukewarm said, the Santander account is very restricted but for us that's not an issue as there will be very few transactions in or out and one of us lives very close to the Santander branch. The RBS one does sound better with cheque book online access and card etc but we wouldn't be applicable for it assuming they also have the restriction regards deceased or executor having an account with them,
    Originally posted by AnotherJoe
    Thanks again. This is really helpful. I know I must do the right thing. Just trying to make the process as easy as possible.
    • Yorkshireman99
    • By Yorkshireman99 9th Mar 18, 10:44 AM
    • 4,117 Posts
    • 3,371 Thanks
    Yorkshireman99
    I am not aware of any law which would legally prevent an executor mixing estate money with their own if that's the way they choose to go about it.

    Often the estate will be out of pocket to start with, particularly if the 1st instalment of inheritance tax has to be paid before, say, the house can be sold.
    Originally posted by Tom99
    The two are different things. Keeping trust assets separate is a fundamental principle of trusteeship. The usual procedure as far as paying IHT is for the executor(s) to raise a short term loan secured on the estate assets until the property is sold if there are insufficent cash ine the estate.
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