Detailed Answer
In Oregon, a personal representative must keep estate funds separate from personal money. Oregon Revised Statutes (ORS) 111.185 requires you to deposit all money belonging to the decedent’s estate into an account you maintain in your fiduciary capacity. You often hear this account called an “estate account” or “fiduciary account.”
Here’s why opening an estate account matters:
- Clear Separation: It prevents commingling estate assets with your own funds.
- Transparency: It simplifies record-keeping and court reporting.
- Liability Protection: It reduces the risk that the court will hold you personally responsible for estate debts or mismanagement.
To comply with ORS 111.185, follow these steps:
- After you receive your letters of authority (see ORS 116.183), choose a bank or credit union.
- Open a new account clearly titled “Estate of [Decedent Name], Personal Representative [Your Name].”
- Deposit all estate funds—proceeds from sales, dividends, rent, refunds—into that account.
- Use the account only for estate income and expenses. Pay funeral costs, taxes, debts, and distributions from this account.
- Keep detailed transaction records and retain bank statements. You will need them for your final accounting (see ORS 116.127).
Failing to open or properly manage an estate account can lead to court sanctions, surcharge, or claims against your bond. Keeping estate funds separate demonstrates good fiduciary practice and helps you fulfill your duties efficiently.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Helpful Hints
- Include “Estate of [Decedent]” in the account title to avoid confusion.
- Ask the bank to flag the account as a fiduciary or trust account.
- Retain all deposit slips and canceled checks for your records.
- Reconcile the estate account monthly against your inventory of assets.
- Notify beneficiaries when you start the account and provide periodic updates.
- Keep personal and estate transactions completely separate to protect yourself.
- Review ORS 111.185 online: https://www.oregonlegislature.gov/bills_laws/ors/ors111.html#ors111.185