Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
When you act as a personal representative (PR) in Utah probate, you hold a fiduciary duty to manage the decedent’s assets diligently. One key step in fulfilling that duty is opening a separate estate account. A dedicated estate account helps you track receipts and disbursements, prevent commingling, and simplify final accounting to the court.
Why Open a Separate Estate Account?
- Prevent Commingling: Utah law prohibits mixing estate funds with your personal money. A separate account ensures clear boundaries.
- Accurate Record-Keeping: All deposits (sale proceeds, rental income) and payments (debts, taxes, distributions) flow through one ledger.
- Bank Requirements: Banks typically require your Letters Testamentary or Letters of Administration and an estate EIN to open the account.
Utah Law and Fiduciary Duty
Under the Utah Uniform Probate Code, you gain authority when the court issues Letters Testamentary or Letters of Administration. See Utah Code § 75-3-708 for your powers, including “collecting the decedent’s property” and “managing estate assets.” By law, you must not commingle estate and personal assets. Failure to separate funds may expose you to personal liability and court sanctions (Utah Code § 75-3-708).
Steps to Open an Estate Account in Utah
- Obtain Letters Testamentary or Letters of Administration from the probate court.
- Apply for an Employer Identification Number (EIN) for the estate via the IRS website.
- Visit a bank with your court documents and estate EIN. Request an “Estate of [Decedent Name], [Your Name], Personal Representative” account.
- Deposit all estate funds—proceeds from sales, dividends, and other income—into this account.
- Pay authorized expenses (creditors, taxes, funeral costs) directly from the estate account.
Helpful Hints
- Maintain a detailed ledger or spreadsheet of all transactions.
- Keep original receipts and invoices for estate expenses.
- File your final accounting on time with the probate court to avoid delays.
- Consider using accounting software designed for fiduciaries.
- Consult an attorney if you encounter complex assets (real estate, business interests).