Should a Personal Representative Open an Estate Account to Handle the Money of the Estate?

Disclaimer: This article provides general information and is not legal advice.

Detailed Answer

Under Nevada law, a personal representative must safeguard estate assets. Nev. Rev. Stat. § 146.141 requires you to deposit all estate funds into a separate account. This dedicated estate account keeps funds distinct from your personal money and prevents commingling. It ensures transparency for heirs and the court.

To open an estate account, first obtain your Letters Testamentary or Letters of Administration from the probate court. Then, visit a bank with those letters, the estate’s Federal Employer Identification Number (FEIN), and your personal identification. Many banks offer fiduciary or trust accounts with special features, such as waived fees and detailed reporting.

Maintaining a dedicated estate account offers key benefits:

• Clear paper trail for all transactions
• Accurate accounting for inventory and appraisal submissions
• Streamlined payment of debts, taxes, and distributions
• Reduced risk of personal liability for mismanagement

By following NRS 146.141, you demonstrate proper fiduciary care. A well-managed estate account supports timely probate and builds confidence among beneficiaries.

Helpful Hints

• Keep detailed records of deposits and withdrawals.
• Label checks “Estate of [Decedent’s Name],” your name, and “Personal Representative.”
• Request duplicate statements or electronic copies for your records.
• Close the account only after final distribution of assets.
• Consult an estate attorney for complex assets or beneficiary disputes.

Key Statute: Nev. Rev. Stat. § 146.141