Detailed Answer
When you serve as a personal representative in Montana, state law treats you as a fiduciary. A fiduciary must manage estate assets, including cash, prudently and transparently. Montana’s probate code explicitly supports opening a separate estate bank account to hold all monies belonging to the estate.
Mont. Code Ann. § 72-1-603(1) requires a personal representative to deposit all estate funds into a special account in a financial institution. Opening an estate account helps you:
- Keep estate assets distinct from your personal funds.
- Track all receipts and disbursements in one place.
- Provide clear accounting to heirs and the court.
Failing to keep estate funds separate can constitute a breach of fiduciary duty under Mont. Code Ann. § 72-1-403(10). Courts may remove or surcharge a personal representative who mixes personal and estate assets.
To open an estate account, bring the court-issued letters testamentary or letters of administration to a bank. The bank will verify your authority and allow you to open an account titled in the estate’s name. Many banks offer dedicated fiduciary accounts with low fees.
Once you open the account, deposit all income—such as pension checks, interest, or rent—into it. Pay valid estate debts, taxes, and administrative expenses from the account. Maintain a running register of transactions, and retain bank statements for auditing.
Helpful Hints
- Notify the estate’s bank in writing when you assume your role.
- Use pre-numbered checks for clear recordkeeping.
- Keep copies of deposit slips, invoices, and canceled checks.
- Review bank statements monthly and reconcile with your ledger.
- Consider interest-bearing accounts to maximize estate value.
- Obtain court approval before making significant disbursements.
Disclaimer: This article provides general information and does not constitute legal advice. Consult a qualified attorney to address your specific situation.