Executors Bank Accounts

[peter548]

My brother and I have been appointed trustees and executors of my late father's estate. Are we able to continue running his accounts to accrue on-going income and to pay bills eg, electricity, gas etc and also to pay expenses such as paying for valuations of his property, shares etc?

Or, do we need to open a separate bank account to do this and get the bank to transfer some money from my father's accounts to do this?

We expect it will be many months before we can apply for probate.

[factor-fiction]

You must notify the bank immediately by sending the death certificate. They will sort things out for you from there

[dzug2]

As soon as the banks know he is dead they will freeze the accounts. Paying bills will have to wait until you have probate - utilities understand that though they may pretend not to.

I'm not sure if you can open a separate bank account prior to actually having probate. If you can you will have to fund it yourselves - it won't allow payments out. The bank xxMAYxx let you pay in amounts he receives

Executors are expected to bear their own expenses until after probate I'm afraid. Ditto Inheritance Tax

[jake-the-peg]

I'm just in the latter stages of doing all this myself.

It'squite a simple estate - no inheritance tax and no complex investments

It's been very simple

I've set up a seperate account and use that to receive and pay money

Just a quick addition to what dzug said - banks will meet fulneral expenses out of the deceased's frozen bank accounts. But they'll probably discuss that with you when you go in with the death cert.

Good luck and if you need any moe advice there will be plenty of us on here who have gone through this and can help

[Peter Pedant]

sorry your Dad is dead - there are trying times ahead

You must tell the Banks and they will freeze the accounts

My brother, keen with grief, said to the BM - we want to clear and close the accounts. His [the BMz ] look can be described as (!) and I was able to clarify.Good example of grief makes you say the wrong thing.

I can't remember what you do with incoming cheques - see Bank Manager.

The Law allows you to pay for a strictly limited set of expenses - funeral springs to mind - we never got them out of the BM and charged the estate separately. Keep strict and accurate accounts (of course!) as IHT is 40% and the taxman will want his share and you naturally will not wish to give the tm anything besides his lawful portion.

I have had rent from a dead man and thought O christ - the family have done diddly squat (which they had ) . So remember to cancel s/o and d/d your Dad was paying.

I think the taxman reasonably wants you to get the estate done and dusted within a year - so you have to get a move on - and remember that the IHT has to be paid before probate so you and your brother may need to raise a loan to pay it on your own.

easy peasy - dont pay a lawyer for that which you can do yourself see other posts.

buy a financial times - today ! for share prices.....

I photographed every room with drawers open etc just to show if queried that my inventory of chattels was accurate, and dont forget - drawers full of used blankets at 50 p each - £3.00. 5 tins of cat food one opened...

Make sure the house is secured - thieves read the funeral notices. - and some even come around during the funeral. [ we were done ]

and good luck....

[jake-the-peg]

//I photographed every room with drawers open etc just to show if queried that my inventory of chattels was accurate, and dont forget - drawers full of used blankets at 50 p each - £3.00. 5 tins of cat food one opened... //

Seriously?

Ever hear of anyone (normal people that is) challenged over this?

[atalanta]

In my father's case, the bank honoured the cheque for payment of funeral expenses. But nothing else. Executors had to set up a new account, and all cheques had to be signed by all executors. Unless one of the executors has enough money of his/her own to keep paying expenses/debts, etc until refunds can be made. If you choose this path, keep scrupulous accounts.

[FredPuli43]

Yes, you should open an executor's account as soon as you get grant of probate, which usually means paying hmrc with a loan . If the deceased left a joint bank account with some other, then that survives and the other can still use it. But that may not be practical. I did it when my mother died and forever after was being asked what the executors' account was.

[Peter Pedant]

Jake I er have a complex tax history...

My father was subjected to: your father had a watch and chain didnt he, where is it ? but that was Pretoria 1928.

and yes I did expect the chattels inventory to be challenged... and was ready for them....

The coal hole and coal presented a problem - no I didnt use kitchen scales but I thought about it. I cant recollect is I modelled a triangular prism or I got four people to say - 1/2 cwt, 60 lb 75 kg etc.

I costed the cat food but not the cat.....

Even OCD children have parents that die....