Do you need probate to open an executor's account?
At most banks, yes: the grant is what they ask for. A few will open one earlier on the death certificate and the will. The good news is that you rarely need the account before the grant arrives anyway.
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The short answer
- An executor's account (or estate account) is an ordinary account opened in the name of the estate, such as "The executors of the late J Smith", to receive and pay out estate money.
- Most banks require the grant to open one. Some will open one on the death certificate and a copy of the will naming you as executor. Ask.
- You usually don't need it before the grant. Until then, banks pay the funeral and probate fee directly, and little else moves.
- Not every estate needs one. A simple estate with one beneficiary can be settled without it, provided records are kept.
- Never mix estate money with your own. If no account can be opened yet, keep any estate receipts separately and record every penny.
What an executor's account is for
Once the grant is issued, money starts to flow: banks release balances, the house sale completes, insurers pay out, and the executor has to pay debts, tax, expenses and finally the beneficiaries. An account in the estate's name keeps all of that separate from the executor's own money, produces a clean statement that becomes the backbone of the estate accounts, and protects the executor from any suggestion that estate money was mixed with their own. Where there are several beneficiaries, or a professional is involved, it is close to essential.
Any bank can open one; it is a current or savings account with the estate as the customer. Interest earned on it is estate income, to be reported on the estate's tax return if it exceeds the small amounts HMRC ignores.
Which banks open one, and when
Policies differ and change. Most high-street banks will open an executor's account only once they have seen the grant of probate or letters of administration, on the basis that until then the applicant's authority has not been confirmed. Some will open one earlier for an existing customer, on the death certificate and a certified copy of the will naming the applicant as executor. A few require the account to be opened in person, with all executors present and identified.
The practical answer is to ask your own bank first (existing customers are treated more flexibly), then the deceased's bank, and to ask specifically: "Will you open an executor's account before the grant on the death certificate and will?" If the answer is no everywhere, wait: the grant usually arrives before there is any money to put in the account.
What to do before the account exists
- The funeral and the probate fee can be paid by the deceased's bank directly from their frozen account, on the invoice. No executor's account needed.
- Inheritance tax can be paid directly from the deceased's account to HMRC.
- Small receipts (a pension arrears cheque, a refund) can be held until the account exists; do not pay them into your own account if you can avoid it, and if you must, record them at once and keep the money untouched.
- Expenses you pay personally (death certificates, valuations, postage) are reimbursable from the estate. Keep every receipt.
Estates that can manage without one
Where no grant is needed and the estate consists of one or two bank balances passing to one or two people, banks will often pay the balance directly to the beneficiaries or to the executor, and a separate account adds little. Where the executor is also the sole beneficiary, the money can be paid into their own account provided debts are paid first and records are kept. In every other case, open the account: the cost of not doing so is arguments and, occasionally, personal liability.
Common questions
What is an executor's account?
A bank account opened in the name of the estate, typically 'The executors of the late [name]', used to receive the estate's money and pay its debts, tax, expenses and beneficiaries. It keeps estate money separate from the executor's own and provides the record on which the estate accounts are based.
Can I open an executor's account before probate?
At some banks, on the death certificate and a certified copy of the will naming you as executor, particularly if you are an existing customer. Most banks want to see the grant first. Ask your own bank and the deceased's bank directly; policies differ and change.
Do I have to open an executor's account?
There is no legal requirement, but it is strongly advisable whenever there is more than one beneficiary, a property sale, or significant sums to handle. A very simple estate with a single beneficiary who is also the executor can be settled without one if debts are paid first and full records are kept.
Can an executor use their own bank account for estate money?
It is lawful but unwise. Mixing estate money with your own makes the accounts hard to prove, exposes you to challenge from beneficiaries and creditors, and can cause problems if you die or become insolvent while holding estate funds. Open a separate account as soon as a bank will allow it.
How do I pay the funeral without an executor's account?
Send the funeral director's invoice to the bank holding the deceased's account. Banks pay funeral costs directly from a deceased customer's frozen account without a grant and without any separate account being opened.
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Important
Solace is not a firm of solicitors and does not provide legal, tax or financial advice. We are an estate administration service and we are not regulated by the Solicitors Regulation Authority, the Financial Conduct Authority or any equivalent body. Nothing in this guide constitutes legal, tax or financial advice, and no solicitor–client relationship is created by reading it.
This article is general information only. It reflects the position in England and Wales at the date shown above; the law and the figures change, and Scotland and Northern Ireland differ in important respects. It may not apply to your circumstances. Whether a particular estate needs a grant is ultimately decided by the organisations holding the assets, and their limits change. Administering an estate carries personal legal responsibility, and you should obtain advice from a qualified solicitor, accountant or other regulated professional where appropriate. Always check current rates, fees and deadlines against GOV.UK before acting.