Detailed Answer
Under Minnesota law, a personal representative must keep estate funds separate from personal assets. Minnesota Statutes require that a personal representative deposit money coming into possession into a separate fiduciary account. See Minn. Stat. § 524.3-719. This separation prevents commingling and protects beneficiaries’ interests.
Opening an estate account offers key benefits:
- Clear accounting. It simplifies tracking deposits, expenses, and distributions.
- Fiduciary duty compliance. It helps satisfy the representative’s duty to manage estate assets prudently.
- Audit readiness. It provides a transparent record for the court and interested parties.
To open the account, bring to the bank:
- Letters Testamentary or Letters of Administration issued by the probate court.
- Death certificate for the decedent.
- Personal identification of the representative.
Title the account to reflect its fiduciary nature, for example: Estate of Jane Doe, by John Doe, Personal Representative. Banks typically offer fiduciary or trust accounts tailored to estates.
Once open, deposit all estate receipts—sale proceeds, rental income, tax refunds—into this account. Pay creditors and administration expenses from this account. Maintain detailed records and retain bank statements for your inventory and final accounting to the court and beneficiaries.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed Minnesota attorney for guidance specific to your situation.
Helpful Hints
- Obtain certified Letters Testamentary before contacting a bank.
- Use a separate checkbook and accounting ledger for the estate account.
- Retain all receipts and invoices for estate-related expenses.
- Promptly reconcile monthly bank statements to avoid errors.
- Distribute funds only after court approval or beneficiary consent when required.