Using an estate checking account for asset management

Using an estate checking account for asset management

On Behalf of | Sep 12, 2023 | Estate Planning

In New York and around the country, creating an estate to distribute and manage a deceased person’s assets is typically necessary. The lack of designated beneficiaries for assets will often determine whether or not an estate is needed. If it is decided that an estate should be formed, an estate checking account is the best way to handle income and expenses.

Can you open an estate checking account at any bank?

Almost every bank will offer estate checking accounts to assist in probate and estate administration. Certain credit unions will not allow for estate checking accounts, and most banks will require estate accounts to be opened in person. You are not required to use the same bank as the deceased person. However, keeping the estate account in the same state and county as the decedent’s original account and place of residence could be helpful.

Items needed to open an estate checking account

Banks will require a copy of the death certificate and an estate identification number to open a checking account. Letters testamentary will also be required to prove you are indeed the estate’s administrator or executor. Some banks will need a copy of the will as additional proof that you are the executor to determine who should be receiving distributions from the account.

What goes into the estate account?

Life insurance policies identifying the estate as the beneficiary will go into the estate account and money from existing accounts. Proper estate and probate administration will also place any earnings from the estate, such as interest or stock sales into the checking account.

Close the decedent’s original accounts after opening the estate account and transferring funds. This will simplify fund management and probate processing.

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