Executor Accounts

[Marcia Jones]

We have been instructed in the sale of property by the Executor of an estate (our firm is not dealing with the probate). We have requested details of the Executor Account for the sale proceeds but the client has said that he has been told by Lloyds Bank that he does not need to open an Executor Account and that an account in his name would suffice for the receipt of funds.

I cannot find any guidance on this and so any assistance as to whether this is correct would be greatly appreciated.

Thanks

[Preya Gohil]

While it’s not legally required, it’s generally recommended that executors use a dedicated bank account, often called an executor account or a specific estate account, rather than their personal bank account, to manage the deceased’s funds. This helps maintain clear separation of assets and avoid potential conflicts of interest or confusion when distributing the estate.

If Executors simply open a separate bank account in all names of the Executors as per the Probate (not the Executors Account) this satisfies the separation of estate funds from personal funds.

[Geoff Smith]

My view – if you have sight of the will showing the client as sole executor and evidence of probate being granted that is sufficient evidence that the client is entitled to decide the recipient bank account and you will have carried out your due diligence.

[Marcia Jones]

Thanks both, that’s really helpful

[Author]

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