Every estate executor has an obligation to act in the best interest of anyone who might be affected by the outcome of probate. For instance, executors need to protect the interests and rights of beneficiaries while also ensuring that creditors are paid in full. The failure to do so could have harsh consequences for the executor on a personal level.
Thankfully, a dedicated probate attorney could provide guidance during the process of resolving an estate. For instance, opening an estate account in probate in Moorestown could help protect valuable assets. An estate account is designed to safeguard the assets of an estate during the often-complicated probate process. Our dedicated legal team could help you understand what to expect when opening an estate account.
The Purpose of an Estate Account
Estate accounts are an important part of the probate process. These accounts provide executors with a secure place to store the assets of the estate. Estate assets can be held in these accounts throughout probate until they are used to pay creditors or beneficiaries. While funds are stored here, they are safe and easily accounted for.
Having an estate account is more than just a good idea. According to the law, executors have an obligation to take reasonable care to protect estate assets. It is reasonable under these circumstances to entrust the assets of an estate to a bank or other financial institution.
There are steep consequences for estate executors that do not protect the assets of the estate. Maintaining an estate account is one of the best ways to avoid the consequences of mismanagement that can follow a judicial review of the estate. An experienced Moorestown attorney could answer further questions about how an estate account could help streamline probate and protect valuable inheritances.
How to Open an Estate Account
Just as executors have an obligation to the estate, banks have an obligation to their customers. These institutions take steps to ensure accountholders are properly identified and credentialed. For instance, there are certain things the bank will require before a person can open an estate account. These protections are important, given that the holder of these accounts has full control over the assets of an estate.
Before a bank opens an account, the executor must be able to prove they are authorized to act on the estate’s behalf. That means the estate must be in probate before the bank opens the account. Proving that the estate is currently in probate requires a court order that names the potential account creator as an executor.
Additionally, anyone hoping to open an estate account must demonstrate that the estate in question is a formal, legal entity. For instance, a valid estate must have a tax ID number created by the Internal Revenue Service (IRS). An estate account can only be opened after an executor provides their bank with this relevant information. If executors need guidance with opening an estate account during the process, they can work with a seasoned Moorestown lawyer.
Talk to an Attorney About Opening an Estate Account in Probate in Moorestown
If you are an executor of an estate, it is vital that you meet your obligation to the relevant beneficiaries and any other interested parties. One of the easiest ways to do that is by relying on estate accounts to keep track of valuable assets. Opening an estate account in probate in Moorestown can be a crucial step, so do not hesitate to consult with our legal team if you need guidance and direction. A dedicated lawyer could answer questions, outline your obligations as an executor, and help you avoid complications. Call today to learn more.