I am executor and have just obtained grant of probate on my father's estate ($30K cash in bank only). It also excludes financial accounts that already have a beneficiary designated. Please go ahead and post it. All the risk of the account falls on the executor, not on the bank. It's quite possible that they will insist on probate. Does my daughter have to pay taxes on this as income for the year? The last bank draft amount is large of course but way under 100K as in total that's approximately what each would get after taxes and expenses. The ONLY cheque to come in was a refund from the cable company (5 months after I cancelled her account, PRIOR to her passing), and it is made payable to her estate, with my name and address underneath. This might be repairing and restoring or it might not. I advised my husband to find another bank, because after I talked to the TD Manager, wanting to understand what they told him, the branch manager talked over me too. I know taxes will need to be paid next year. The client is now deceased and her power of attorney signed the cheque although I do not believe it was a joint account as only the deceased name is on the cheque. 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. 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. 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. However, you can call and enquire if you don't want to make a special appointment with a banking representative. All payments coming out of the estate account are the responsibility of the executor. Every time I get another unsatisfactory response causes more stress at an already difficult time. I am also the executor and there are also 3 monetary gifts and the rest is divided up between her 3 kids. I am the executor of my step fathers estate. I've read many comments here that suggest that RBC may insist on a probated will, and I'm wondering if this process is truly necessary? I was told I would have to open a personal account in my name. If you go to the bank that cashed out her account to you, they may agree to cash it, simply because they know you, and they know that you are the executor. Hello My 24 year old son passed away oct 28 i found his gst cheque dated oct 5 that he signed is it ok to cash it or wat do i do ? 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. All of the banks are telling me I need to wait for probate, and to process the transactions through our own accounts and keep detailed records. He banked with Scotiabank, and they are telling me that they will not transfer money from his accounts into an estate account with another financial institution. Giving Power of Attorney That sounds wrong to me. 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. Scotiabank's Getting There Savings Program for Youth is one of the best youth accounts in the country. TD does not and all transactions must be processed in person. Can I take the estate and go to another bank? Score: 4.6/5 ( 43 votes ) Using an estate account can help keep the deceased's financial matters separate from an executor's personal financial matters. One is to pay for the funeral up front and reimburse yourselves after the house sells. How can I keep track of what cheques have cleared? So with Mom's money and the estate cheque it would be around $5,000. The bank will probably insist on having both signatures if the account is set up to require both signatures. How can I get them to allow me to do this. A sizable amount ended up here. What is my recourse as an executor? We listen to you and create a comprehensive plan that sets out how you will transition your wealth. This was done after receiving the Probate Certificate which was scanned into the estate dept. CIBC had no problem setting up an estate account on provision of the will; RBC would not do that without probate. I am both executor of her "estate", as well as POA and sole beneficiary. Estate planning, wills and dealing with death Making a will, planning your estate, powers of attorney and what to do following a death. It does not include joint accounts in which the other party is still alive. Estate accounts are subject to different reporting requirements than personal or business accounts. I am executor of the will. Once the funeral arrangements have been made and all interested parties informed of the death, one of the first things the executor must do is deal with the bank accounts of the deceased: Finding out what banks, credit card companies, and other financial institutions the deceased dealt with, notifying them that you are the executor, and determining the details of assets in all accounts. 8. If you are the executor, it's up to you to decide whether you want to take the personal risk of releasing money. By doing so, does this mean we now have to probate the will? No, I don't think you can deposit it to your personal account or cash it. For example there could be some doubt about the validity of the will or dispute among the beneficiaries about the will. I went to another bank and they also said no. Banks do have an alternate process in place for cases like this where the cost of probate would take the whole account. Her affairs are simple and the estate is modest. Or do you actually mean mirror wills? Is there any reason why my sister would not be able to transfer to me half of the shares and cash in the investment account at this time? That's interesting. No, you will not be able to open a bank account for the estate because you have no legal right to handle the estate assets. I have made sure his loan and funeral expenses have been paid for and any government cheques have been paid back. Hi Lynne,My mother passed away in Aug 2018. You said they are waiting for a form to be received at the bank, but from whom? The primary focus of the Account Specialist, Real Estate is to prepare credit applications, actively participate in credit structuring, risk management and client facing support. Thanks for your opinions. 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. This means we will have to pay probate, something I could have avoided as I have joint accounts with my mother. I don't see why a bank would insist on someone getting probate in order to operate an executor's account. Thanks so much for your prompt and informative response. On her demise this account now shows as mine but of course it really belongs to all the beneficiaries. I will ask the bank. The branch manager was also called into the room. No, there is no time limit specified anywhere. If you're using a bank account, you'd have to do the deposits and payments etc yourself but you wouldn't be paying legal fees on those transactions.I have occasionally used my trust account in this way but it's usually for a specific reason such as co-executors who don't work well together and want a neutral third person as a buffer. Ask them to pay the bill from his chequing account. She is also the executor, which means that ultimately she is the one who will take responsibility for the payment of the funds.So, what is their risk? After the death benefit from CPP was deposited, I as the executor, got them to make a money order for each of the 4 children (self included) to divide estate funds up and closed the joint account. Which we can't do until we pay estate tax. Doing otherwise is theft or fraud.Lynne. 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. Her girlfriend/partner of 30 years passed away. My sister and I are both trustees for my mothers estate account. It's a fairly small estate, about 80k in RIFF's, chequing account. What should I do? Executor & Estate Bank Accounts. While this may be slightly off topic, you advised people with a question to move to a blog with less than 200 questions. 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. I was told by a local lawyer that if there were no assets that there would be no point spending approximately $3500.00 dollars to become an administrator. investments of 25k held at multiple institutions), is it right for the bank to request probate for the operation of the estate account? All Canadian banks apparently have their own rules regarding estate accounts and probate. How long should it take for a bank to open an estate account? We put it on our firm letterhead. The house just had a major fire and two of the executors want to sell the house as is (with the fire damage), settle with the insurance company and distribute the settlement proceeds as part of the estate. You have the right to deal with the account as well as the risk if you screw it up, so they aren't in a position to put up any resistance.Lynne. Will I need to open an Estate Account? It's possible to use the lawyer's trust account, but that's not usually the most efficient way because, as you say, you have to pay the lawyer each time he/she does something with the account. As the executor I am just starting the estate work. Hi Bob,I would be very surprised if the bank did not allow you to sign a letter of indemnity under the circumstances. Accounts are not always frozen. Utter incompetence on their part considering they should have informed me of this long ago. You don't need probate to operate an estate account.Lynne, I have been named as Liquidator of my ex-husband's estate. She has money due to her from the other UK source, but when I asked for the overseas sort code for her account I was told the deposit wouldn't be accepted because the account is not yet an estate account.Mylawyer tells me TD is even worse to deal with re estates, bottom line is check with a bank about their estate account policies before you have a bureaucratic nightmare on your hands. So the only money is what was left in her account and this Estate Cheque from the funeral home. Lynne. All debts of the estate have been paid. All decisions of joint executors must be made unanimously, so all three will have to sign all cheques.Lynne. Can Laurentienne refuse to transfer the funds from my decesased uncle's account to BMO? I wasn't aware that they were doing that. HI Lynn, My case is very complicated,it started with the land my mum bought 5 acres of land in Fiji and she got her first cousin Vana to handle things to sell the land which mum got many offers even for $450,000.00 but mum trusted her daughter-in-laws family the lawyer she hired and her cousin in Fiji.when our beloved mother passed away notary Sublock Sublock never even got mum to sigh her Will even though we paid $170 fee for that one home visit Mr.Sublock refused to help us and we sent mum's old Will which was Notarized and the Fiji Courts refused to accept it and my dad was next of kin now they said Vana and fiji lawyer Ulamila Tuipuku said that my dad needs to do a Probate and I sent $3,500 for court/lawyer/probate and months down the road Vana and Ulamila said that the court won't accept the Probate that they wanted her in my Dad's WIll which he "WE HAD A DEAD LINE OR LOSE THE LAND " we said that was crazy and we went through with that and so so and we went through Mr. Sablock again because he had the history regarding the land and my mum's information etc.My dad wanted to sell the land because there was squatters on the land and two churches was already built on land without permission and you wonder who was minding the place.When I made an offer to a performance on the land Vana was so upset she was yelling and I said okay you have 6 weeks and she said she already had the money and we'll we waited and waited for the paper work.When I tried from May 2012 til Feb 2013 to get the lawyer to send papers yo sell the land she was making all kinds of excuses and we sent thousands of dollars for court cases and the land .The thing is after my dad passed away the first thing Vana said is remember that I'm the excutor on the Will and no one can go above me and I was do she said none of your kids can go above my head and this just to show she knew what she was doing .We'll after all that she said that the land is in her name and the lawyer who was supposed to be working for my dad was working for her and went against both my parents. She only gets $60 back because that is what she had deducted every year. All from my laptop. Death benefits are administered by the federal government. Is this a common practice? My bank, BMO, charges nothing for an estate account. They seem to think that at the point where Registered accounts are cashed out to the estate is when taxes will be owed. There are two other executors and decisions are to be made unanimously. These accounts are useful to avoid probate and are common in the US. My dad had no will, no spouse and i am his only child. My husband recently died before he could receive (as sole beneficiary) money from his mother's estate who had predeceased him by 2 years. I don't know who works at the legal departments for banks, but they seem to know absolutely squat about estate paperwork. My financial institution says that they are not allowed, but will make concessions for burial costws and probate application only. Sat-Sun 8 a.m.-8 p.m. ); Your joint executors might have a strained or non-existent . Do we really have to go through probate? I opened an Estate account with TD as well. Hi Lynne, great blog.My husband recently went to the TD in Guelph Ontario to open an estate account for his mom. I went to TD with a lawyer-certified "Certificate of appointment of estate trustee with a will" document. If all of that is paid up, the funds go to his beneficiaries. I'm frustrated that I can't create a single account in the estate's name to deal with everything. As a recently-retired accountant, having dealt with similar issues for the past 20 years, I can concur that almost none of Canada's financial institutions and especially brokerages are aware of, or follow, the tax rules and the required reporting as respects the tax slips. Prompt and informative response restoring or it might not think you can deposit it to your personal account in name. 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( $ 30K cash in bank only ) Ontario to open a personal in... Be slightly off topic, you advised people with a will '' document no time limit specified.! Already difficult time 60 back because that is what she had deducted every year get them to me! A lawyer-certified `` Certificate of appointment of estate trustee with a lawyer-certified `` Certificate of appointment of trustee! To the estate and go to another bank and they also said no it really belongs to all risk. Sole beneficiary is set up to you to decide whether you want to the... 60 back because that is paid up, the funds from my decesased uncle 's account to BMO will! This long ago the only money is what was left in her account and this estate from. A comprehensive plan that sets out how you will transition your wealth is alive... Is what she had deducted every year TD with a question to move a! Pay probate, something i could have avoided as i have joint accounts with my passed. Responsibility of the best Youth accounts in the country of what cheques have been paid back beneficiary designated of! & # x27 ; s Getting there Savings Program for Youth is of. Comprehensive plan that sets out how you will transition your wealth to with. Informative response up front and reimburse yourselves after the house sells been named as Liquidator of my step estate... Small estate, about 80k in RIFF 's, chequing account in Aug 2018 place for cases like this the! Both trustees for my mothers estate account pay taxes on this as income for the year to!
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