Disclaimer: This article is for educational purposes and does not constitute legal advice.
Detailed Answer
Under Louisiana law, a personal representative (also known as an executor or administrator) must keep estate funds separate from personal assets. The court usually requires that you deposit all liquid assets into a designated bank account known as an estate account. This preserves a clear record of transactions and protects against commingling.
Louisiana Code of Civil Procedure article 3201 mandates depositing succession funds into a bank approved by the court and maintaining clear records. Failure to open an estate account can expose you to personal liability, court surcharges, and disputes with heirs.
To open an estate account, you must:
- Obtain a certified copy of the letters testamentary or letters of administration from the clerk of court.
- Petition the court for approval of a depository, if required by local rules.
- Open the account in the name of the succession, for example, “Succession of Jane Doe, represented by John Smith, Executor.”
- Ensure the bank designates the account as a succession or estate account and provides statements to you and the court as needed.
Maintaining a separate account simplifies accounting, eases fiduciary oversight, and upholds your duty to beneficiaries. You can track income, manage expenses, and prepare timely accountings for court approval.
See Louisiana Code of Civil Procedure article 3201: https://www.legis.la.gov/Legis/Law.aspx?d=81221
Helpful Hints
- Keep detailed records of every deposit and withdrawal, including receipts and invoices.
- Work with a bank familiar with Louisiana successions to streamline the process.
- Consult local court rules; some parishes require a formal petition to designate a depository.
- Use accounting software or spreadsheets to track estate transactions separately from personal finances.
- Plan for final distribution: close the estate account only after all debts, taxes, and expenses are paid.