The executor of an estate holds a great deal of responsibility. If you hold this position, you will likely have to field questions from beneficiaries and other individuals associated with the estate who want information about how probate is going. You will also need to make sure that you handle each step of the probate process appropriately.
Because people can become suspicious any time another person handles a loved one’s money, you may find yourself facing the scrutiny of your relatives and other parties. Because you want to do everything by the book, you will need to open an estate account.
What is an estate account?
Because your loved one is no longer alive and able to manage already-opened accounts, you will need to inform the necessary entities that your loved one has passed. You will also need to close the accounts that he or she had opened with those entities. In some cases, that may mean you need to withdraw the remaining funds in an account. Of course, you cannot simply withdraw the money and put it in your own account, so you will need to open an account for the remaining estate.
The estate account can hold the funds from the accounts in your loved one’s name that you have closed, and it can accept incoming funds. Those new funds may come from any uncashed checks that your loved one had that you need to deposit, compensation owed to the decedent, interest from investments and other income. You will then use these funds as necessary to pay debts and handle the estate’s other financial matters.
Closing the estate account
Once the probate process comes to an end and you are ready to distribute the remaining estate funds to the intended beneficiaries, you will need to close the estate. In some cases, the court may require documentation on what assets the estate brought in, how the assets were used and what is left. If the beneficiaries do not believe that any funds were misused and sign off on the documentation, the estate may be closed.
After the estate is closed, you can close the estate account. Typically, court approval is not needed in order to close the account, and the remaining funds can be distributed as appropriate. If you have questions about using an estate account or other ways to protect estate assets, you may want to reach out to a Nevada probate attorney.