During probate, an executor or administrator is legally bound to act in the best interests of the decedent’s estate. This includes ensuring the estate gathers the decedent’s assets and distributing funds and property to the correct parties, which usually requires opening a new bank account.
An executor should open an estate account for probate in Manalapan Township to consolidate the estate’s cash assets and distribute those assets as required by a will or other testamentary document. This helps to organize the estate’s assets and allows an executor to keep track of the flow of funds until the estate ends.
What a Person Needs to Open an Estate Account
Banks take pride in ensuring that their account holders have proper identification. This applies to personal accounts, business accounts, and even estate accounts. The estate of a deceased person can be an account holder with an executor as the only party with access to the funds, but to open these accounts, it is necessary to demonstrate to a bank that a person has the authority to act on behalf of the estate.
Opening an estate account in Manalapan Township is only possible once the estate goes into probate, meaning that a probate court will have authorized a person to act as an administrator or executor. A copy of the court order naming a person as the executor is necessary to open the estate account.
The estate also needs to exist as a taxable entity to open a bank account. This requires the creation of a tax ID number through the Internal Revenue Service (IRS). The resulting employer identification number (EIN) helps the bank and IRS identify the estate and charge relevant taxes. Once an executor gathers the necessary documentation, they simply need to make an appointment with the bank of their choice and bring the required paperwork to the meeting.
The Role of an Estate Account in Estate Administration
Having a valid estate account is central to effective estate administration. An estate executor’s main goal is to ensure that the estate’s assets go to the proper parties, which involves issuing the necessary funds for the administration of the estate, paying debtors, and providing cash to beneficiaries. According to New Jersey Revised Statutes § 3B:10-23 the executor has a duty to settle and distribute the estate of the decedent according to the terms of the will and the law. Opening an estate account could help greatly with this task.
Separating the funds of the estate from one’s personal cash is always essential. Having an estate account helps separate this money and avoid the appearance of impropriety. Additionally, cash distributed through an estate checking account will help debtors and beneficiaries know exactly where the funds are coming from and maintain their own records.
An Attorney Could Help with Opening an Estate Account for Probate in Manalapan Township
If you have been named as the executor of a decedent’s estate, you are now responsible for paying the estate’s debts, settling tax obligations, and ensuring that the remaining funds go to the named beneficiaries. While all this may seem daunting, opening a separate estate account for probate in Manalapan Township could help you to fulfill this obligation while avoiding any appearance of impropriety.
An experienced attorney is ready to help answer any questions you may have about the estate account process. Contact a lawyer today to learn more.