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An estate account is a bank account that an estate's executor or personal representative opens ? in the name of the deceased person's estate ? to temporarily hold the deceased person's assets. The executor can then settle the deceased person's unfinished affairs using the money in the account.
This means that the funds contained in the accounts will be transferred to the court-appointed executor or administrator for deposit into an account in the name of the decedent's estate, and they may be able to be used by the executor or administrator to satisfy the decedent's debts and pay probate costs.
While opening an estate account might seem like a complicated, unnecessary step for an executor of an estate, it's actually the ideal vehicle for administration purposes and helps reduce an executor's liability exposure.
Once you've been appointed executor or personal representative by the probate court, you'll probably want to open a bank account in the name of the estate. Usually, an account for an estate is registered in this or a similar way: "Estate of Gerald S. Smith, Deceased, Pamela S. Smith, executor."
How to open an estate account Begin the probate process. The steps for beginning this process depend on the state in which the deceased person resided. ... Obtain a tax ID number for the estate account. ... Bring all required documents to the bank. ... Open the estate account.