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A bank account for in-gathering funds from a deceased person's estate

Clariman
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A bank account for in-gathering funds from a deceased person's estate

#343784

Postby Clariman » September 29th, 2020, 8:06 pm

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

Clariman
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Re: A bank account for in-gathering funds from a deceased person's estate

#343785

Postby Clariman » September 29th, 2020, 8:08 pm

FYI this is a "small estate" in Scotland so there is no probate or equivalent (certificate of confirmation) required.

staffordian
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Re: A bank account for in-gathering funds from a deceased person's estate

#343789

Postby staffordian » September 29th, 2020, 8:48 pm

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 :)

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Re: A bank account for in-gathering funds from a deceased person's estate

#343791

Postby joey » September 29th, 2020, 9:11 pm

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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Re: A bank account for in-gathering funds from a deceased person's estate

#343798

Postby Mike4 » September 29th, 2020, 10:23 pm

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.


I second this.

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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Re: A bank account for in-gathering funds from a deceased person's estate

#343806

Postby Alaric » September 29th, 2020, 11:22 pm

Clariman wrote: If so, what other type of account would make the most sense?


Twenty years ago, it was possible to open an account in the name of the Executors of the Estate. Is this no longer possible?

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Re: A bank account for in-gathering funds from a deceased person's estate

#343859

Postby Loup321 » September 30th, 2020, 9:29 am

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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Re: A bank account for in-gathering funds from a deceased person's estate

#343862

Postby scrumpyjack » September 30th, 2020, 9:46 am

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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Re: A bank account for in-gathering funds from a deceased person's estate

#343868

Postby BellaHubby » September 30th, 2020, 10:10 am

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

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Re: A bank account for in-gathering funds from a deceased person's estate

#343870

Postby yorkshirelad1 » September 30th, 2020, 10:21 am

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


My bank (Barclays) wouldn't let me open what they called an "executors account" until I had probate.
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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Re: A bank account for in-gathering funds from a deceased person's estate

#343891

Postby Clariman » September 30th, 2020, 11:24 am

Alaric wrote:
Clariman wrote: If so, what other type of account would make the most sense?


Twenty years ago, it was possible to open an account in the name of the Executors of the Estate. Is this no longer possible?

Yes if I understand you correctly. It will be in my wife's name. It won't specifically say "as executor ..."

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Re: A bank account for in-gathering funds from a deceased person's estate

#343896

Postby Clariman » September 30th, 2020, 11:28 am

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

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Re: A bank account for in-gathering funds from a deceased person's estate

#343923

Postby stevensfo » September 30th, 2020, 12:34 pm

Mike4 wrote:
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.


I second this.

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.


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.

Steve

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Re: A bank account for in-gathering funds from a deceased person's estate

#343939

Postby didds » September 30th, 2020, 1:04 pm

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

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Re: A bank account for in-gathering funds from a deceased person's estate

#343970

Postby stevensfo » September 30th, 2020, 2:38 pm

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


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.

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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Re: A bank account for in-gathering funds from a deceased person's estate

#343972

Postby swill453 » September 30th, 2020, 2:40 pm

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.

Probably because 99% of us wouldn't use it.

Scott.

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Re: A bank account for in-gathering funds from a deceased person's estate

#343999

Postby stevensfo » September 30th, 2020, 4:34 pm

swill453 wrote:
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.

Probably because 99% of us wouldn't use it.

Scott.


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.

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


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