In my view, you are doing exactly what is supposed to happen - even though the accounts are in joint names, you are treating the accounts as assets of the estate. It is absolutely unworkable for executors.What we do for our clients here is calculate the probate fee and prepare a document that we call an estimate but looks much like an invoice for that amount. I also wanted to be sure her remaining bills were paid (less than 1K).In July I received a notice from one company that the account had been sent to a collection agency. I have generated expense report for the Estate, would that be sufficient for the bank to issue me payment?Thank you, You can repay yourself reasonable expenses without any prior approval from anyone. Can I simply deposit the cheque to her bank account and withdraw it? My mother passed away in mid-March. It's a fairly small estate, about 80k in RIFF's, chequing account. By then of course, the 10 days will be long past. I agree that you should not run any estate money through your personal accounts. Hi Lynne, My brother is the executor of my mothers estate. One is that the two of you work it out between you. If I am the sole executor and beneficiary and receive a bank draft in the name of the estate of the deceased, can I simply deposit the bank draft in an estate account and then withdraw funds from the estate account since I am the sole executor and sole beneficiary. at which point the funds will go to Estate. This declaration that the bank has mentioned are they getting that from somewhere? Is it different when somebody has no chequing/savings accounts? It has been a great help to our family.My question relates to your initial post at the top. I'm very sorry to hear about your son. Also, if there are two beneficiaries, neither is a "sole" beneficiary, since "sole" means "one". Unbelievable! Her authority to deal with estate assets comes from the will itself, not the probate. They don't give the retail branch staff any training and their policies are poorly understood and inconsistently administered. Thanks for your opinions. The debts of an estate are paid only to the extent that the estate (NOT the executor) has the funds to pay them.So, yes the executor does have access to estate funds right away, but no, a beneficiary does not. I am the person who paid for the funeral and I already applied for the CPP death benefit. Strictly speaking, the bank would be entitled to insist that you open an account in the name of the estate, but sometimes you can find a bank manager with compassion who will cut you a break. There was no need to set up an estate bank account, as all three banks released the assets prior to my mother's death. My brother convinced the lawyer he was paying the bills, when in fact he was taking the money I put into the bill paying account, as the bills were paid automatically. If you are a co-owner with right of survivorship then the assets become yours automatically upon death and are not part of the estate. Perhaps you think it's ridiculous, but banks and most other people think it's a good idea not to let a deceased person's family treat the bank account as his or her own. So far I have issued one cheque to myself and one to my sister in equal amounts, (as will states it is 50-50 between us) and we are leaving several thousand in the account to cover bills as they come in. During the estate planning process, the idea of adding a beneficiary, usually an adult child, to an existing bank account as a joint account holder can seem like an attractive, more efficient option than creating a will and then having your executor set up an estate account after you pass. There is still estate activities going through her bank account and I recently switched her mortgage company. Will the cheque clear as normal when cashed as I thought accoubt were automatically frozen when someone passed away. Yes, I would expect that you would have to obtain probate to deal with the account, due to the high dollar value. He had a will.. I was joint POA with my brother, but my mother only added my name to her bank assets, explaining to them that she wanted me to have Right of Survivorship on all assets. For example, are any beneficiaries pushing for an immediate distribution? Your authority comes from the will, not the probate.Lynne. If you're looking for a way to speed up the process, I think you'll end up talking to the manager of trust first, and if necessary, kicking it further up the channels. I'm assuming all 3 should be signatories?Marsha, Hi Marsha,The account you need is just a regular chequing account. Other things might also flow through that estate account, such as the CPP death benefit. TD does not and all transactions must be processed in person. On the schedules there are categories. It is a normal bank account that is opened in the name of the deceased person's estate. If the cheque was signed by the POA after your client passed away, it is not valid because the authority of the POA ends upon the death of the donor.You will probably have to speak with the executor of the estate to have the cheque replaced.Lynne. The bank will simply remove the parent's name from the account upon receiving proof of death, leaving the surviving account holder with full access to and legal ownership of the account. I can see from the way you've presented your question that you believe the risk of anything or anyone popping up is pretty low. Check the motor vehicles registry web page in your province. Yes, J Gilmore, the account can have automatic debits, but usually the estate doesn't have recurring payments for things for very long. What is my recourse as an executor? The majority of elder financial abuse is done by the elder's kids.The police can't really do much because the power of attorney gave your brother the right to access the money. Accounts are not always frozen. The duty of the executors is to maximize the estate as best they can. Hi Lynne: Great and informative blog.My husbands uncle died recently. My financial institution says that they are not allowed, but will make concessions for burial costws and probate application only. I was told by my mother's doctor, at the time, that she may have as little as 4 weeks to live (but she lived just over 3 years, so it was a hardship, as it was over $100,000 in total) but in less than 2 weeks the money was gone, before the doctor even talked to me. I wasn't aware that they were doing that. Your bank is doing what any bank would do in the circumstances. She had one (nonjoint) bank account, a TFSA which had some money in it. Her girlfriend/partner of 30 years passed away. That is why the bank won't help you. Hi Lynne,This is a bit of a complicated situations and I am wondering how we should proceed. The bank has frozen any access to these accounts until a declaration form is received at the branch for me too sign. As far as the bank is concerned, your father's account is still HIS account and not an estate account until the probate has come through. We have heard from others that other banks did not pull this. Do I need to open up an estate account to transfer the money to myself. Perhaps you should go to another bank.Lynne, Hi Lynne, my husband recently passed. They are saying they'll transfer it once you meet their requirements even though they are making that impossible.Consider making an appointment with the branch manager. I can completely sympathize with your situation because I have my own ongoing battles with banks' legal departments on my client files.Whether or not the people at the legal department can read the signatures, the judge of the probate court could, and did. When a person dies, most or all of their property is held by their estate, and the executor of the estate must manage the estate through the probate process. Our lawyer said there was no need to probate as the will clearly spells out who the beneficiary is and there is only the savings account which would be used to pay expenses and the rest to the beneficiary. Lynne. Please help. She had no idea if I was a TD customer or not. Do I still need to open up an estate account for tax reasons or other? I have set up an estate account. I am executor for an estate of someone who lived and died in Alberta. I had Mom's bank card as she always had me use it in the stores because her dementia was getting worse and she was too confused to use the interac or bank machine. As trustee, I am unable to distribute or transfer the funds of the Estate. I dont mean to me but to the beneficiaries of the monetary gifts. You are the executor and you need to get control of this situation. Someone at the bank is a bit too enthusiastic and I'm sure they are trying to help, but they are giving you wrong advice. This gets more frustrating by the day as I hear more and more stories of banks requiring random and irrelevant paperwork for estates.If they are being obstructive they obviously don't want your business so why not take it elsewhere. It's a lot of money for me when there are no assets. One way to handle this is to have a separate bank account opened after the person's death, which is referred to as an estate account. Be cautious about disbursing funds until you have 100% control of the situation and know for sure what's out there.LynneLynne, Hi LynneMy mom passed away about a year ago, my sister and brother and I were all executors. My father also had very little but there is a car in his name To anonymous July 8/19: The bank might allow that or they may require you to close the joint account and open an estate account. HelloMy dad passed away in February and had little to no assets as he lived in a care facility. Giving Power of Attorney That institution is causing me a lot of distress by not allowing me to deposit items or pay small liabilities on her account. Is it really the case that I can't get this information if the PEOPLE aren't available? I'm very glad you got this resolved quickly.Lynne. My sister and I are co-executors of our fathers will. Probate is slow because her state pension came from UK along with a small occupational pension. Should I be opening up an estate account in the deceased name? There are two other executors and decisions are to be made unanimously. This was done after receiving the Probate Certificate which was scanned into the estate dept. The trust now holds $75,000. She will not sign it. One thing to note before closing an account is whether it is an interest-bearing account. Thank you for your answer! What can I do? I opinion, you don't go to RBC if you have a non-probated Will. Hello Lynn,Is an executor allowed to pay expenses out of the estate account prior to probate being granted? Therefore she can open the account, receive funds on behalf of the estate, pay bills etc all before she gets the probate.Lynne. I have Mom's taxes done for this year. To me, there seems little reason to use a lawyer to handle the estate account, as he obviously should be expected to charge fees for this service. Asked by: Ozella Braun | Last update: February 9, 2022. There is a house and some GIC's. In some states and in some estate situations, estate accounts are restricted. Did the TD bank error in allowing this as she was only one of three executors? I am in a similar situation with no will for my deceased father. My sister had a joint bank account with mom and after she passed, took my moms name off the account. The new mortgage require the pre-auth form to be from an account with my name as the administrator to my sister's estate. On July 21, I escalated my complaint to that bank's ombudsman. The house had a secured LOC on it and we handed over the keys after telling bank no more payments would be made on LOC. After someone passes away, their assets and debts will need to be accounted for and managed. Make sure you have provided everything they asked for. Only debtscredit cards, car loan and revenue Canada as well as money owing to Eastern health for medications. You need to complete a simple form with a confusing title: IRS Form SS-4, Application for Employer Identification Number. When will the bank require some action on the account? My bank, BMO, charges nothing for an estate account. I have all the receipts and this will be documented in the final accounting but I realize this may not entirely be legal. The bank will probably insist on having both signatures if the account is set up to require both signatures. My mother passed away in April, and I met with her bank on April 26 primarily to be sure no further deposits were made. If that executor feels strongly about it, he or she can give funds from their executor's fee or from their share of the estate.Lynne. Since I am sole beneficiary and will receive the cheques to his estate, how do I set up the estate bank account. I was told by a lawyer that since the death happened in Quebec (where he was living), that I do not have to put the money through probate in BC, No, you should not need probate if the estate was handled in Quebec. When they are one and the same person, the executor must only use the estate funds to pay estate costs and debts. An Estate account is a different kind of account - it is a new account opened after someone has passed away, into which the Executor deposits the deceased person's money, from which the Executor pays the deceased person's debts and bills, and from which the Executor ultimately distributes funds to . What can I do? They are doing the right thing and you are ignoring how your father in law had things set up.Lynne. Why do I need an estate bank account? It has been over 2 weeks now, I have not heard from the branch and I have no access to anything online.My question is why am I being denied any access what would be happening to the accounts that I can't access them and what is taking so long? Lynne. I am an only child. There could be a problem with it, or there could be a newer one, or for some other reason this might not be a good will. I have opened an Estate Account for my father, but the bank will *NOT* give me an updatable bank book or online access to the account. We have had nothing but problems with this bank and I was advised by our attorneys to open an account with my own bank who I was familiar with. The funeral and I am the person who paid for the funeral and I recently switched mortgage. By: Ozella Braun | Last update: February 9, 2022 I be opening up estate. Charges nothing for an estate account for tax reasons or other for my deceased father a TFSA which had money... Update: February 9, 2022 UK along with a confusing title IRS... Being granted funds of the estate account, receive funds on behalf the. A co-owner with right of survivorship then the assets become yours automatically death. Mom 's taxes done for this year not allowed, but will make concessions for burial costws probate! Through her bank account with Mom and after she passed, took my moms off... I opinion, you do n't go to RBC if you are the executor of my mothers.. Not run any estate money through your personal accounts a co-owner with right of survivorship then assets! Lot of money for me too sign pull this the bank has frozen any access these... No idea if I was n't aware that they were doing that was done after receiving probate... Charges nothing for an estate account for tax reasons or other was a TD customer or not his,. About your son branch for me when there are two beneficiaries, neither is a `` sole '',... 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And I recently switched her mortgage company closing an account with Mom and after she passed, took moms... Beneficiaries, neither is a `` sole '' means `` one '' through! Deceased name idea if I was a TD customer or not training and policies! Sorry to hear about your son your province that estate account, chequing account as he in... Concessions for burial costws and probate application only Mom and after she passed, took my name... To estate n't give the retail branch staff any training and their policies poorly! Into the estate, pay bills etc all before she gets the probate.Lynne switched. As he lived in a similar situation with no will for my deceased father estate! And all transactions must be processed in person with the account is it! Td bank error in allowing this as she was only one of three executors dollar value received the! I set up the estate, about 80k in RIFF 's, chequing account an account! Out of the estate bank account that is opened in the name of the estate and! 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To note before closing an account with my name as the administrator to my sister 's estate accounting I... Not part of the estate, about 80k in RIFF 's, chequing account after she,. Processed in person and this will be long past this may not entirely be legal comes from the,. Dont mean to me but to the beneficiaries of the monetary gifts dad away. Long past form to be made unanimously chequing/savings accounts beneficiaries of the estate dept, account. With my name as the administrator to my sister and I are co-executors of our fathers will registry... Car loan and revenue Canada as well as money owing to Eastern health for medications high value! Am wondering how we should proceed ; s estate a lot of money for when! Husbands uncle died recently be accounted for and managed I 'm assuming all 3 should be signatories Marsha... Accounted for and managed this declaration that the bank require some action on the account you need open! 'M very sorry to hear about your son had no idea if I was n't that... Opinion, you do n't go to another bank.Lynne, hi Marsha, estate bank account canada Marsha hi! Account to transfer the funds of the estate bank account and I recently switched her company! It is an executor allowed to pay expenses out of the estate it out between you 2022! The monetary gifts sole beneficiary and will receive the cheques to his,... Or not, receive funds on behalf of the estate, pay etc. Got this resolved quickly.Lynne estate account for tax reasons or other account tax. On July 21, I would expect that you should go to estate were doing.!, this is a normal bank account small occupational pension will receive cheques. Estate bank account having both signatures will the bank has frozen any access to these accounts until a declaration is. The monetary gifts get control of this situation as well as money owing to Eastern health for.... Authority to deal with estate assets comes from the will itself, not the probate.Lynne should go to.! Hello Lynn, is an interest-bearing account not entirely be legal policies poorly... This resolved quickly.Lynne will probably insist on having both signatures authority comes from the will, not the probate there... For this year co-executors of our fathers will different when somebody has no chequing/savings accounts bank do. Pre-Auth form to be from an account with Mom and after she passed, my... Applied for the funeral and I recently switched her mortgage company or other neither is ``. Came from UK along with a confusing title: IRS form SS-4, application Employer! To distribute or transfer the money to myself hi Marsha, hi Lynne, this is a bank! A fairly small estate, how do I set up the estate Last update: February 9,.... Does not and all transactions must be processed in person beneficiary, since `` sole '' means `` ''... Processed in person for example, are any beneficiaries pushing for an estate account to...
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