Detailed Answer
When you serve as a personal representative of a Wisconsin estate, you must manage the decedent’s assets prudently. One key step is opening a dedicated estate account at a bank or credit union. Maintaining a separate account helps you track receipts, expenses, distributions and prevents commingling estate funds with your personal money.
Statutory Requirement. Under Wis. Stat. § 867.19, the personal representative must deposit all money collected from estate assets into an estate fund. The statute explains that without court permission, you cannot disburse principal or income outside of the estate account except to pay authorized claims and expenses. (See Wis. Stat. § 867.19.)
Accounting and Creditor Claims. Wisconsin law requires you to file an inventory and periodic accountings. A dedicated estate account simplifies balancing your books. It lets you clearly show funds received—such as bank account balances, investment sales or rents—and funds paid to creditors or beneficiaries under Wis. Stat. § 867.20. (See Wis. Stat. § 867.20.)
Protecting Yourself and Beneficiaries. A separate estate account reduces the risk of accusations of waste or mismanagement. It also demonstrates to beneficiaries and the court that you followed best practices. Using a dedicated account with regular statements and online access makes it easier to reconcile transactions and provide transparent records for final distribution.
Process to Open the Account. 1. Obtain letters of appointment from the probate court. 2. Visit a financial institution. 3. Present your letters, your ID, and the decedent’s info. 4. Set up the account in the name of “Estate of [Decedent Name], by [Your Name], Personal Representative.” 5. Retain all statements and transaction records.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult an attorney before making decisions affecting an estate.
Helpful Hints
- Open the estate account as soon as you receive your letters of appointment.
- Keep digital and paper copies of every transaction.
- Notify the court if you need to invest funds or transfer assets.
- Use accounting software or a spreadsheet to track deposits and withdrawals.
- Consult your attorney before making large distributions or closing the estate.