Detailed Answer
Definition and Purpose
An estate account is a bank account opened in the name of the decedent’s estate. It holds all funds collected by a personal representative (also called an executor or administrator) after probate begins. The primary goal is to keep estate assets separate from your personal finances.
Legal Duty Under Washington Law
Under Washington’s probate statutes, a personal representative must collect, preserve and manage estate assets faithfully. RCW 11.44.020 requires you to “take possession of the decedent’s property and manage it as a fiduciary.” Opening a dedicated estate account supports that duty. See: https://app.leg.wa.gov/rcw/default.aspx?cite=11.44.020.
Benefits of an Estate Account
1. Prevents Commingling: Mixing estate and personal funds can lead to allegations of self-dealing.
2. Simplifies Accounting: Banks provide monthly statements. This makes inventory, tax filing and final distribution easier.
3. Bank Requirements: Many banks insist on a probate court’s Letters Testamentary or Letters of Administration before opening such accounts.
How to Open an Estate Account
1. Obtain Letters Testamentary/Administration: File the will (if any) and petition the Superior Court. The court issues Letters, proving your authority.
2. Visit a Bank or Credit Union: Bring a certified copy of Letters and the decedent’s death certificate.
3. Sign in Your Official Capacity: Use the estate’s tax identification number (EIN). You can apply online at the IRS website.
Consequences of Not Opening an Estate Account
• Personal Liability: You may be personally responsible if estate funds disappear.
• Court Oversight Issues: Courts demand clear records before approving final distribution under RCW 11.48.010. See: https://app.leg.wa.gov/rcw/default.aspx?cite=11.48.010.
• Delays: Creditors, heirs and the court may challenge your accounting, extending probate.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on Washington probate law.
Helpful Hints
- Apply early for an EIN—banks often require it before you can deposit checks.
- Keep a separate ledger or spreadsheet to track all incoming and outgoing transactions.
- Retain every bank statement, check copy and receipt for creditors, taxes and final distribution.
- Review Washington Probate Rules, especially Rule 2 on court documents, to comply with form and filing requirements.
- Consult an estate attorney if the estate includes complex assets like real estate or business interests.