Why should the Executors open an Executors Bank Account?
Basically, to avoid mistakes, or the suspicion of mistakes when intermingling (mixing) the estates’ money with your own money. Unless you are the only beneficiary, it really is unwise not to open an executor’s bank account.During the course of sorting out the estate, all sorts of money is likely to come in and go out of the bank account you use, and keeping track of it in your own account is not going to be straightforward.You should also consider the eventuality that the executor just might lose mental competence or die during the course of the estate administration, and the thought of untangling estate assets from those of the former executor is enough to give anyone nightmares!
Why can’t I use the deceased person’s bank account?
The bank will freeze their bank account as soon as they are notified of the death, and using their account after death is not legal, for the executor or for the attorneys on an Enduring Power of Attorney or a Lasting Power of Attorney Property and Financial Affairs. That is not to say that the bank may not consider paying all or part of the funeral bill (deceased’s funds allowing) provided they are given the bill and they send the payment direct to the funeral director. Again, funds allowing, they will normally allow standing orders and direct debits to continue: otherwise (for example) the building insurance might be cancelled (do look at the link – the information could save the executors from personal bankruptcy!) You may even get them to pay the probate application fee out of the clients account.Just to make the point clear, the Executor will need a Grant of Probate (or Letters of Administration) before they can legally use the deceased’s accounts. So unauthorised use could well be reported to the Police, who will take a dim view of it. Some executors carry on using the deceased’s account without notifying the bank of the death, and that is illegal.
- HSBC.
- Lloyds.
- Barclay’s.
- NatWest UK.
- Santander UK.
- Royal Bank of Scotland
- Cater Allen