Disclaimer: This article is for educational purposes and not legal advice. Consult a qualified attorney for guidance specific to your situation.
Detailed Answer
When a loved one dies in New Mexico, the personal representative (formerly known as executor) must protect and manage estate assets. One core duty is handling the estate funds separately from personal accounts. Under NMSA 1978 section 45-3-603, a personal representative shall deposit all money belonging to the decedent’s estate in an appropriate depository authorized by law to do business in this state. That means opening a dedicated estate account at a bank or credit union operating in New Mexico.
This separate estate account helps you comply with court supervision. By the New Mexico Uniform Probate Code, the district court supervises how estate funds are collected, invested, and distributed. Mixing estate money with personal funds risks breach of fiduciary duty and may lead to personal liability.
After receiving letters of appointment from the district court, the personal representative should open the estate account promptly. Provide the bank with a certified copy of the letters testamentary or letters of administration and a certified copy of the death certificate. Use the estate account for all estate-related transactions: collecting proceeds from sales, paying valid debts and taxes, and distributing inheritances after court approval or as allowed by statute.
Maintain accurate records and bank statements. Pursuant to NMSA 1978 section 45-3-702, you must keep detailed accounts of receipts, disbursements, and inventory of estate property. At the end of the administration, file a final account with the court showing how you handled the estate funds.
Key statute references:
Helpful Hints
- Gather certified death certificates and letters of appointment before visiting the bank.
- Choose a depository that offers estate or fiduciary accounts without excessive fees.
- Keep personal and estate finances strictly separate to avoid allegations of mismanagement.
- Retain all bank statements, canceled checks, and receipts for court review.
- Consult an attorney if you encounter disputes with creditors or beneficiaries.