Executor Bank Accounts: What You Need to Know

Do I Need an Executor Bank Account?

If you have been appointed as an executor, one of the first practical questions you may face is how to manage money belonging to the estate.

You may need somewhere separate to hold estate funds while you deal with probate, pay expenses and debts, and ultimately distribute the estate to the beneficiaries.

But do you actually need an executor bank account, and what can you do if you are unable to open one?

Do you have to open an executor bank account?

There is no general legal requirement for an executor to open a dedicated executor bank account. However, it is generally good practice to keep estate funds separate from your personal money.

As an executor, you are responsible for accounting for the estate’s assets and transactions. If estate money is paid into your personal bank account alongside your salary, household bills and everyday spending, it can quickly become difficult to distinguish between your money and the estate’s money.

Keeping estate funds separate provides a clear record of transactions and can help reduce the risk of misunderstandings or disputes with beneficiaries and other executors.

Why is opening an executor bank account becoming more difficult?

Opening an executor bank account is not always as straightforward as it once was. Some high street banks no longer offer dedicated executor accounts, while others have specific eligibility requirements or require applications to be made in branch.

The requirements can also vary considerably between banks. For example, you may need to provide a Grant of Probate, identification and other documentation relating to the estate. There may also be restrictions concerning the number of executors who can operate the account.

This can create an additional practical difficulty for executors who are already dealing with the administration of an estate following a bereavement. Bank policies and procedures can change, so it is important to check the current requirements of the bank you are considering before making an application.

Can you use your personal bank account?

If you cannot open an executor bank account, you may be tempted to use your personal account instead. However, this can create unnecessary difficulties. Estate money is not your personal money, even though you have authority to deal with it as an executor. Mixing the two can make it harder to maintain accurate records and demonstrate how the estate’s money has been handled.

The position can be particularly sensitive where there is more than one executor. If estate funds are held in an account controlled by just one executor, this may cause concern for co-executors or beneficiaries, even where the money is being handled correctly. Where possible, estate funds should therefore be kept separate from your personal finances.

What can you do if you cannot open an executor bank account?

If you are unable to open an executor account, there are several options to consider.

1. Try another bank

Different banks have different policies and requirements. If one bank cannot provide an appropriate executor account, another may be able to do so.

Before applying, check the bank’s current requirements, particularly in relation to the Grant of Probate and the number of executors involved.

2. Contact the deceased’s bank

It may also be worth speaking to the bank where the deceased held their account.

The bank may have procedures for dealing with the deceased’s existing account and releasing funds as part of the estate administration.

3. Ask a solicitor about holding estate funds

If you are instructing a solicitor to deal with the estate, they may be able to hold estate funds in their client account, where appropriate and subject to the applicable regulatory requirements.

The SRA Accounts Rules require client money to be handled appropriately and kept separate from money belonging to the firm. Solicitors’ client accounts cannot simply be used as general-purpose banking facilities.

For an executor who is struggling to arrange a suitable bank account, professional advice can therefore provide a practical alternative, depending on the circumstances of the estate.

How EMW can help

Dealing with probate can be complicated enough without having to navigate difficulties with banking arrangements.

At EMW, our probate solicitors can assist with the legal and practical aspects of administering an estate, including the appropriate handling of estate funds.

Where we are instructed to administer an estate, we can hold estate funds in our client account where appropriate and in accordance with the relevant regulatory requirements.

If you are an executor and are struggling to open a bank account for an estate, or you would prefer to have the financial administration dealt with by a solicitor, our probate team can advise you on the options available.

Contact EMW today to discuss your probate and estate administration requirements.

This article is intended as general information only and does not constitute legal advice. Bank policies and procedures can change, so specific advice should be obtained where appropriate.