Detailed Answer
When someone dies in West Virginia, the probate court appoints a personal representative (sometimes called an executor or administrator). That person has a fiduciary duty to collect assets, pay debts, and distribute property. One of the first practical steps is to open a dedicated estate bank account. This account holds all funds belonging to the estate, such as bank balances, life insurance proceeds, sale proceeds, and rental income.
Under West Virginia law, the personal representative must keep estate assets separate from personal funds to meet the duty of loyalty and avoid co-mingling. Although the West Virginia Code does not explicitly mandate an ‘estate account’, courts expect fiduciaries to use a separate account. The West Virginia Code addresses fiduciary duties in several sections:
- West Virginia Code §44-1-6: Duties of personal representatives to collect and manage estate property.
- West Virginia Code §44-1-7: Qualification, bond requirements, and issuance of letters.
- West Virginia Code §44-4-7: Investment of estate funds prudently.
Most banks require a certified copy of the letters testamentary or letters of administration, the decedent’s death certificate, and a federal tax ID number (EIN) for the estate. After opening the account, the personal representative deposits incoming funds, pays authorized expenses, and tracks all activity. This avoids confusion and satisfies reporting requirements when filing accounting reports with the probate court.
Failing to open a dedicated estate account may lead to allegations of co-mingling, breach of fiduciary duty, and personal liability. Keeping clear records in a single account simplifies accounting and maintains transparency for beneficiaries.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney in West Virginia for guidance on your specific situation.
Helpful Hints
- Obtain your letters of administration or letters testamentary before contacting a bank.
- Request a federal Employer Identification Number (EIN) from the IRS for the estate.
- Use the estate account for all estate-related receipts and disbursements only.
- Keep detailed records and monthly statements for court filings.
- Review West Virginia probate rules and local court procedures to understand accounting deadlines.
- Consult an attorney to ensure compliance with court and tax requirements.