Detailed Answer
What Is an Estate Account?
An estate account is a bank or savings account opened in the name of the decedent’s estate and managed by the personal representative. This separate account holds all cash and marketable securities belonging to the estate. It ensures clear separation between personal funds and estate assets.
Why North Dakota Law Requires One
Under North Dakota law, a personal representative must deposit estate funds exceeding $2,000 in a federally insured institution within 30 days of appointment. NDCC § 30.1-19-07 states:
“Cash and marketable securities in excess of two thousand dollars from an estate shall be deposited within thirty days after the appointment of the personal representative in one or more federally insured banks or savings and loan associations in this state…”
This requirement promotes transparency, protects creditors and beneficiaries, and preserves estate funds from mismanagement.
How to Open and Manage the Account
- Obtain certified letters testamentary or of administration from the county court.
- Visit a bank or savings and loan association in North Dakota.
- Open an account in the name of the estate, e.g., “Estate of Jane Doe, Deceased, John Smith, Personal Representative.”
- Deposit all estate cash and securities exceeding $2,000 promptly.
- Maintain detailed records of all deposits, withdrawals, transfers, and account statements.
Consequences of Noncompliance
Failing to open a separate estate account or mingling funds may expose a personal representative to personal liability. The court may surcharge the representative for any losses, deny discharge from administration, or impose other remedies to protect the estate and its beneficiaries.
Helpful Hints
- Label the account clearly with the estate name and your title.
- Keep all bank statements and canceled checks in the estate file.
- Use separate checks for estate expenses; never use personal checks.
- Review NDCC § 30.1-19-07 for detailed deposit rules.
- Contact an attorney if complex assets or disputes arise during administration.