A bank account for in-gathering funds from a deceased person's estate
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- Lemon Quarter
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A bank account for in-gathering funds from a deceased person's estate
As an executor of a small estate, Mrs C is gathering in funds from life assurances and bank accounts. She has been advised to set up a new current account for this purpose. However when trying to open up a current with TSB it appeared necessary to pay in a monthly salary or pension, which she won't be doing.
Do current accounts all insist that you will be paying in monthly? If so, what other type of account would make the most sense?
Thanks
Clariman
Do current accounts all insist that you will be paying in monthly? If so, what other type of account would make the most sense?
Thanks
Clariman
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- Lemon Quarter
- Posts: 3025
- Joined: November 4th, 2016, 12:17 am
Re: A bank account for in-gathering funds from a deceased person's estate
FYI this is a "small estate" in Scotland so there is no probate or equivalent (certificate of confirmation) required.
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- Lemon Quarter
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Re: A bank account for in-gathering funds from a deceased person's estate
I dealt with a small estate (in England) a few years ago which was several thousand pounds but there were only two accounts and two beneficiaries, one of whom was me
Rightly or wrongly, I simply used my own account, keeping written records of all transactions. The banks had no issues with making the payments to this account.
Might this option be worth considering, despite the advice received?
Let's see what CK thinks![Smile :)](./images/smilies/icon_e_smile.gif)
Rightly or wrongly, I simply used my own account, keeping written records of all transactions. The banks had no issues with making the payments to this account.
Might this option be worth considering, despite the advice received?
Let's see what CK thinks
![Smile :)](./images/smilies/icon_e_smile.gif)
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- 2 Lemon pips
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Re: A bank account for in-gathering funds from a deceased person's estate
You could consider a current account with Starling Bank. You’ll need a smart phone to open it, but, AFAIK, you do not need to pay in a regular salary to qualify.
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- Lemon Half
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Re: A bank account for in-gathering funds from a deceased person's estate
I second this.joey wrote:You could consider a current account with Starling Bank. You’ll need a smart phone to open it, but, AFAIK, you do not need to pay in a regular salary to qualify.
When I was joint executor for my dear old Dad's estate, we elected to open an account with Natwest. They insisted we visit the branch by appointment to open the account, three hours it took - jeez!
Starling Accounts are wonderfully quick and easy in comparison, and done using just your PC and smartphone.
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- Lemon Half
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Re: A bank account for in-gathering funds from a deceased person's estate
Twenty years ago, it was possible to open an account in the name of the Executors of the Estate. Is this no longer possible?Clariman wrote: If so, what other type of account would make the most sense?
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- Lemon Slice
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Re: A bank account for in-gathering funds from a deceased person's estate
Why not a simple savings account? It still keeps the money separate, and usually has fewer requirements. You can pay money in through a normal current account and move it as soon as it clears to the designate account, if money can't be paid straight in to the savings account.
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- Lemon Quarter
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Re: A bank account for in-gathering funds from a deceased person's estate
I have done this via a savings account attached to my NatWest current account, so that every transaction that went through my current a/c for the estate I transferred to/from the savings account so that there was a full trail and accounting for the estate. The bank were quite happy to pay all items re the estate to my current account. The executor does not have any legal requirement to have a separate bank account for the estate but is required to keep a full accounting of all transactions for the estate.
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- Lemon Pip
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Re: A bank account for in-gathering funds from a deceased person's estate
Could Mrs C open a second current account with her bank? I've done this in the past, with monthly salary etc being paid only to the main current account
bh
bh
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- Lemon Slice
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Re: A bank account for in-gathering funds from a deceased person's estate
My bank (Barclays) wouldn't let me open what they called an "executors account" until I had probate.Clariman wrote:As an executor of a small estate, Mrs C is gathering in funds from life assurances and bank accounts. She has been advised to set up a new current account for this purpose. However when trying to open up a current with TSB it appeared necessary to pay in a monthly salary or pension, which she won't be doing.
Do current accounts all insist that you will be paying in monthly? If so, what other type of account would make the most sense?
Thanks
Clariman
In the interim, so that I could collect in items such as life insurance proceeds and small bank accounts, I was able to open a second/parallel ordinary current account in my name to my existing one. This kept estate matters separate from mine and kept an evidence trail, and meant I had some means of processing payments while I dealt with probate application. Once I had probate, I got an exors a/c and moved funds from the temporary current account into the exors account.
I had no need to have regular incoming payments coming into the temporary/parallel current account. I suppose different banks may vary.
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- Lemon Quarter
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Re: A bank account for in-gathering funds from a deceased person's estate
Yes if I understand you correctly. It will be in my wife's name. It won't specifically say "as executor ..."Alaric wrote:Twenty years ago, it was possible to open an account in the name of the Executors of the Estate. Is this no longer possible?Clariman wrote: If so, what other type of account would make the most sense?
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- Lemon Quarter
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Re: A bank account for in-gathering funds from a deceased person's estate
Mrs C finally managed to negotiate around the TSB account opening questions. Even though she said the primary purpose of the account was to handle the estate, it still went on to ask about her monthly income, her outgoings, her mortgage, how often she would be paying in etc.(!) I think in the end she said zero outgoings, mortgage, and income and it accepted it.
C
C
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- Lemon Quarter
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Re: A bank account for in-gathering funds from a deceased person's estate
Or a Monzo account? From what I read, there's not much to choose between them. I only opened a Monzo account to take advantage of the savings accounts they host via other banks.Mike4 wrote:I second this.joey wrote:You could consider a current account with Starling Bank. You’ll need a smart phone to open it, but, AFAIK, you do not need to pay in a regular salary to qualify.
When I was joint executor for my dear old Dad's estate, we elected to open an account with Natwest. They insisted we visit the branch by appointment to open the account, three hours it took - jeez!
Starling Accounts are wonderfully quick and easy in comparison, and done using just your PC and smartphone.
Steve
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- Lemon Quarter
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Re: A bank account for in-gathering funds from a deceased person's estate
Second the starling/mozo etc accounts.
and has the advantage (well starling has, dunno about Monzo) that you can set up "spaces" within the acciount - like mini ssavings accounts so you can keep stuff separated within the single overall account if you so wish.
didds
and has the advantage (well starling has, dunno about Monzo) that you can set up "spaces" within the acciount - like mini ssavings accounts so you can keep stuff separated within the single overall account if you so wish.
didds
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- Lemon Quarter
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Re: A bank account for in-gathering funds from a deceased person's estate
I haven't checked, but I assume that the spaces work in the same way as the German fintech bank N26. The spaces there are kept separate from the main account and so cannot be used without being released via the app. This is actually a great security feature since even if someone steals the card, there's a limit to how much they can get from it using contactless payments.didds wrote:Second the starling/mozo etc accounts.
and has the advantage (well starling has, dunno about Monzo) that you can set up "spaces" within the acciount - like mini ssavings accounts so you can keep stuff separated within the single overall account if you so wish.
didds
Talking of contactless, when will the banks move into the 21st century and introduce what Revolut has done: the ability to turn the contactless feature off/on? I keep mine off by default.
Steve
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- Lemon Half
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Re: A bank account for in-gathering funds from a deceased person's estate
Probably because 99% of us wouldn't use it.stevensfo wrote:Talking of contactless, when will the banks move into the 21st century and introduce what Revolut has done: the ability to turn the contactless feature off/on? I keep mine off by default.
Scott.
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- Lemon Quarter
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Re: A bank account for in-gathering funds from a deceased person's estate
You're probably right. Just a thought experiment, but I wonder what would have happened if cards had been issued as normal (requiring PIN), but with the possibility of activating the contactless feature when and if required. i.e. default was normal and to be contactless required input to change it.swill453 wrote:Probably because 99% of us wouldn't use it.stevensfo wrote:Talking of contactless, when will the banks move into the 21st century and introduce what Revolut has done: the ability to turn the contactless feature off/on? I keep mine off by default.
Scott.
After all, if an upstart Fintech EMI like Revolut can do it, I'm sure that Lloyds and Barclays could as well. Isn't it all part of us 'Taking back control'?
Steve