Detailed Answer
Under Arkansas probate law, a personal representative must keep estate assets separate from personal funds to fulfill fiduciary duties and avoid co-mingling. Ark. Code Ann. § 28-39-205 requires that all money coming into a fiduciary’s hands be deposited promptly in one or more financial institutions as directed by the court. Opening a dedicated estate account labeled “Estate of [Decedent Name]” ensures transparency and eases reporting to the Circuit Court.
Segregated accounts offer several benefits: they generate clear bank statements for each transaction, simplify final accounting, and protect the representative from personal liability. Courts typically review these statements before approving the personal representative’s final settlement. Failure to open a separate account may lead to surcharge actions under Ark. Code Ann. § 28-23-104 and could expose the representative to personal financial responsibility for any losses or errors.
To open the account, present the letters testamentary or letters of administration issued by the circuit clerk. Choose an FDIC-insured bank and request a signature card requiring dual authorization if possible. Maintain meticulous records of every deposit and withdrawal, including copies of invoices, receipts, and beneficiary distributions. When closing the estate, provide the court with the bank statements and a detailed accounting signed under oath.
Helpful Hints
- Obtain certified copies of letters testamentary before visiting the bank.
- Include “ESTATE OF [Decedent Name]” in the account title to avoid confusion.
- Use accounting software or a spreadsheet to track transactions daily.
- Retain all receipts, canceled checks, and invoices for court review.
- Notify all beneficiaries and allow them to inspect account records if requested.
- Consult Ark. Code Ann. § 28-39-205: Deposit of Funds by Fiduciary.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Always consult a qualified attorney for guidance on your specific situation.