Detailed Answer
When a loved one passes away in Virginia, the court appoints a personal representative (also called an executor or administrator) to collect assets, pay debts, and distribute property. One of the first tasks is handling the estate’s money. Under Virginia law, the personal representative must keep estate funds separate from personal funds. This helps maintain clear records, prevents claims of mismanagement, and shields the estate from personal creditors.
According to Va. Code Ann. § 64.2-615, within 60 days of qualifying as personal representative, you should deposit all cash, bank accounts, and similar liquid assets into a dedicated “estate account” at a bank or credit union. Most institutions have fiduciary or trust departments experienced in opening accounts titled “Estate of [Decedent Name], by [Your Name], Personal Representative.” You’ll need your court-issued Letters Testamentary or of Administration, your personal ID, and the decedent’s Social Security number.
Benefits of an estate account include:
- Clear separation of estate versus personal transactions.
- Streamlined bookkeeping for income, expenses, and distributions.
- FDIC or NCUA insurance up to applicable limits.
- Protection against challenges by heirs or creditors.
After opening the account, use it exclusively for estate receipts (rents, dividends, refunds) and estate expenses (funeral costs, taxes, probate fees). Reconcile statements monthly. Maintain detailed ledgers. When distributions occur, record the payment date, payee, and purpose. These records form part of your accounting to the court and beneficiaries.
Helpful Hints
- Choose a bank with a fiduciary department to simplify the setup process.
- Label checks and deposit slips clearly with the estate name.
- Keep original bank statements and supporting documentation in a dedicated file.
- Review Virginia’s Code: Va. Code § 64.2-615.
- Consult an estate attorney or CPA if you encounter unusual assets (cryptocurrency, business interests).
Disclaimer: This article is for educational purposes only. It does not constitute legal advice. Consult a qualified Virginia attorney to address your specific situation.