They have no say over what an executor does with an estate account. Please advise. She did have a will but unfortunately it was not signed. My elderly (74) sister has made 2 partial distributions (3 siblings equal parts) and left enough for the CRA in the Estate account (says she has applied for a certificate). It must be a policy of the particular bank.Lynne. Is this an honour system, or does the bank verify estate accounts by looking at the will? However, that is none of the bank's business. Nobody but a judge can decide whether a decision made by your mother close to her death is a valid decision or not.I'm absolutely horrified by this story. He banked with Scotiabank, and they are telling me that they will not transfer money from his accounts into an estate account with another financial institution. I have set up an estate account. Based on your comment in the second paragraph, how would this apply to funds held with a financial institution in an investment account?If I am executor of my father's estate, and he had an investment account of $500,000, does the financial institution have to pay it out to me as executor if I instruct them to?Isn't it basically standard practice for them to require a probated will before they will liquidate an investment account?Thanks. My mom had around $800 000 of chequing and investment accounts. Payable on death accounts A bank account where a beneficiary is named is called a payable on death (POD) account. Lynne. But the bank refuse to do this. This is what the law says you are supposed to do. I am an executor of my mother's will. The estate is valued under 20000 dollars so we are not applying for probate. if opening an estate account is the route i must take how long before assets can be distributed? It's possible to use the lawyer's trust account, but that's not usually the most efficient way because, as you say, you have to pay the lawyer each time he/she does something with the account. Empire Life is right, in my opinion. He had no assets. I am the executor of my step fathers estate. All the estate assets have since been liquidated and deposited to the CIBC estate account, and now CIBC has locked the funds and is refusing to distribute the funds until such time as each and every beneficiary appears at a branch of CIBC, identifies themselves with the previously provided ID's and signs the account application. This had to go to their Head Office and it would take about 2 weeks. I opinion, you don't go to RBC if you have a non-probated Will. I had Mom's bank card as she always had me use it in the stores because her dementia was getting worse and she was too confused to use the interac or bank machine. Srnicek said most brokers predict interest rates will continue to rise in the first quarter of 2023, with the first Bank of Canada announcement on the key interest rate set for Jan. 23. But bank policy about the probate requirement is made at the higher levels and the local branches only have so much flexibility. No spouse. My mothers estate is relatively simple and comprised of an investment account with a major financial institution and 2 bank accounts, all of which I am listed as joint (prior to her death I was my mothers POA for property). I was joint POA with my brother, but my mother only added my name to her bank assets, explaining to them that she wanted me to have Right of Survivorship on all assets. In particular, you should not have named yourself because someone working under a POA is not allowed to benefit from the position of POA (other than collecting a wage for the work, if allowed). I suspect what they are talking about is that certain beneficiaries, such as spouses, usually have 6 months to make a claim against an estate, so executors usually wait out that time period. As trustee, I am unable to distribute or transfer the funds of the Estate. There are two other executors and decisions are to be made unanimously. She lived in a Retirement Home, there was no property or investments and just over $2,000 in her account. However this has affected how the tax slips have been filled in. That is the worst thing he can do.Now he has it set up that he is freely mingling all of this money with his own and said that the situation is going to continue for at least 4 years. So i'm very confused. can i process the estate cheque through the joint account? THe big risk is, if a testamentary trust is involved, as there are deadlines that might be missed and taint the trust. Lawyer Trust account and then endorse deposits to it and then disburse through it?Look forward to some feed back and thanks. My mother passed away in April, and I met with her bank on April 26 primarily to be sure no further deposits were made. Or do they receive (in my case, beneficiaries are to receive monthy from estate) beginning when the funds are ready to be dispursed? The bank had a copy of the will and death certificate .. now what do I do with these cheques I recently got? The RSP is not in the estate if it names beneficiaries. Do I actually need any sort of approval? You should not have listed anyone but her estate as the beneficiary of that contract. You have the will, so you can show your appointment as executor.Lynne. Is my only recourse to take her to court or at this point start litigation? I have having some real tough issues with TD Bank. Now the bank is on the hook for the full funds because they released the funds to the wrong person. He has suffered a stroke and is slowly recovering but very difficult to communicate with him. The financial obligations of an estate do not "come to" an executor personally. That is why the bank won't help you. Keep all estate funds separate from your own. Do I have any rights to see this paperwork? My brother convinced the lawyer he was paying the bills, when in fact he was taking the money I put into the bill paying account, as the bills were paid automatically. There is nothing else to pay out now. Will taxes apply to your estate in Canada? The bank is treating my moms registered accounts with no beneficiaries (rrsp/lif/rrif) as frozen until probate is received. we are now waiting to hear from CRA, and if everything is ok he will apply for clearance certificate. There is still estate activities going through her bank account and I recently switched her mortgage company. It never works when people try to make square pegs fit into round holes by using financial instruments and legal documents to do things they were never meant to do.Anyway, enough lecture. Everything has been done for the estate. They will continue to do this until a beneficiary sues them. The problem was resolved in a day after I fired off a couple of nasty emails to RBC's client centre, Trust wing and Ombudsman. Perhaps you should go to another bank.Lynne, Hi Lynne, my husband recently passed. That is not the law any longer, when we are talking about inter-generational accounts. Can Laurentienne refuse to transfer the funds from my decesased uncle's account to BMO? My sister and I are co-executors of our fathers will. He did not leave a will. My mother's will has her 3 children as executors. You can open an estate bank account after initiating probate and petitioning the court for formal recognition as executor or administrator. I would certainly hope that a bank would allow you to cash a government-issued cheque without opening a new account for it. Received his last Canada Pension cheque, issued in the month of his passing but am unable to cash it. If you did not obtain the permission of the court to step down, you are still the executor. Something like that might make a bank reluctant to accept the will without the backing of the court. Let's say your husband goes into the bank with the will and the bank releases the funds to him with no probate. I just received an insurance cheque made out to " The Estate of ". If the house can sell at a higher price after repairs and restoration is there a duty to the beneficiaries to wait until it's repaired before selling? Since I haven't heard from the bank I have taken the money she had in there and put it in a separate account at my bank and it will sit in there until everything is done. We have cheques to deposit, but dont know where to put them now. I don't know what you've got in mind when you mention recourse. However, what do you mean by joint wills? Having been executrix of my husbands assets 30+ years ago, I should have known better; he had accounts at both CIBC and a smaller one at RBC. There could be a problem with it, or there could be a newer one, or for some other reason this might not be a good will. Do I still need an estate bank account?Thank you,Tammy, I doubt you would need one, simply because there won't be anything to put in there, or anything needing to be paid out of there. As the executor I am just starting the estate work. The bank was very helpful ,CIBC, in not having me set up an estate account (funds in account under $3000) as I had a joint account due to his dementia where his money went in and his bills came out of. I have yet to close her personal bank account - this is a minimal cheque ($200) and it seems RIDICULOUS to have to go through all of this. Unfortunately, often the only feasible solution is for the accountant to prepare worksheets, pieced together from whatever data can be determined, allocating assets and incomes into pre- and post-death portions, for reasonable, if not precise, tax reporting. Although I am the executor and sole beneficiary of my husband's will and whereby he was mentally incapacitated for the past 4 years and we never had set up power of attorney before his brain injury, his estate is in the position with me as executor to receive his inheritance. It's 2500.00. I certainly know plenty of executors who have online access to their estate accounts. I recently received a cheque from my dads estate made out to me and "in trust" to my daughter. I believe you are wrong about avoiding probate because of the joint account. My mother being executor & beneficiary of all his assets, we did not think probate was necessary, so no application has been made. However, keep in mind that as an executor, your obligation is to wind up the estate as efficiently and quickly as possible. Those people actually DO know their way around estates really well. I asked if i can close the account and open one that says Sara Smith, Administrator of the Estate of Jane Doe and they said no. Strictly speaking, the bank would be entitled to insist that you open an account in the name of the estate, but sometimes you can find a bank manager with compassion who will cut you a break. I am her executor and sole beneficiary. Through the firm that handled my mothers taxes we have filed and received a refund for her 2017 taxes. It's quite possible that they will insist on probate. is, however I am just doing it myself to save money as everything was straight forward and I am paying all bills as they come in. In order for that to happen, there has to be a will that appoints you. I dont mean to me but to the beneficiaries of the monetary gifts. Now the will have been pronated and the bank has all information requested but will not release the money to the estate account because they want to keep it to cover the mortgage (with the same bank). Does the annual audit of accounts reflect this inaction? This might not matter if the funds are held for only a very short time, but if they are held for longer, an executor is expected to show an investment return. My father was a street person, so they helped to budget his money. Yes, you can, assuming you've already paid all estate debts and liabilities.Lynne. I have not received anything in writing other than a few emails. Estate Administrator: A legal term referring to a person appointed by the court to administer the Estate of a deceased person who died without making a Will. The branch manager was also called into the room. I asked to see the documents and they refused to show them to me and also refused to give me a contact name and number of the registered office because I am not a member of the credit union. Perhaps you think it's ridiculous, but banks and most other people think it's a good idea not to let a deceased person's family treat the bank account as his or her own. She only gets $60 back because that is what she had deducted every year. If all of that is paid up, the funds go to his beneficiaries. Went in to my local branch to start distributing funds to the beneficiaries when to my utter shock was informed the Probate papers had been rejected by the Estate Dept's legal wing due to the inability to read to signatures on the will, thus not allowing me to touch any of the funds. Sometimes the bank will know about these, but sometimes you have to review old statements to figure it out. The things people will do to their own parents is absolutely appalling. As a result, few executors know, relying on the issued (or not-issued!) I am not the executor, a relative who is a C.A. how long does that usually take? (The cops have had the 'case' for 6 years)So be warned some banks are willing to release funds prior to the (joint) account holders death,(whether it be weeks, or years) and that the money while insured, is not insured for theft or fraud, so you won't be getting any money back from the bank if they 'made a mistake' even though according to one manager 'it happens all the time'. A cheque was released to to each person on title for a project (including my grandmother whom they knew was deceased) . Just recently she sent everyone $50,000.00 cheques, from her bank account, so we could get some of the proceeds now rather waiting the 4 years.An Executor depositing Estate money into there own personal account just doesn't seem right! Still to this day I have not heard anything. One is to pay for the funeral up front and reimburse yourselves after the house sells. Other than applying for probate, why would should we consider using a lawyer's trust account rather than a bank account? We need to access funds to pay final funeral expenses, property tax, and more importantly estate taxes so we can begin probate.How we do access the funds? my father passed away and only had $960, which was held in trust by an organization. I also wanted to be sure her remaining bills were paid (less than 1K).In July I received a notice from one company that the account had been sent to a collection agency. I would suggest opening an estate account. All properties were sold and bills paid and income tax filed. Lynne. We listen to you and create a comprehensive plan that sets out how you will transition your wealth. Other banks are also refusing to open estate accounts. Tell him in advance that you are coming in to collect a cheque for the full amount of funds and you expect it to be ready. I just found out that the bank where the estate accounts exist is increasing fees for idle/dormant accounts (which these are, essentially) and I'd like to avoid being nickel and dimed for service fees. Everything else of my husbands, all accounts, homes,, RRSP's etc. She might have received wrong advice from a lawyer or from a banker. Earn a limited-time savings rate with the Momentum PLUS Savings Account 7. Is there a specific issue or problem or situation in your case that would be best served by having the lawyer control the funds? Have you taken the estate paperwork to the bank with the cheque? Can my sister disburse fees from my fathers estate accounting to reimburse my brother for return air fare and to me for gas mileage, when we attended his rental to remove his belongings and sell his assets? My sister now refuses to sign a bond of indemnity to the bank to have it replaced even though I went as far as convincing the bank to put my name on the bond too, which they don't have to. The problem we now have is that while we can see the account online, we are not able to make any payments from it for utilities and rent prior to moving her stuff out of the apartment. The bank will simply remove the parent's name from the account upon receiving proof of death, leaving the surviving account holder with full access to and legal ownership of the account. Why on earth do people try so darn hard to avoid probate? They refuse to transfer the assets in those account over to the estate account until they receive the probated will. I doubt you want the estate you're working on to be that case, so you are acting properly. If he will not clean it up voluntarily, you might consider asking the court to remove him. Do you mind if I place your article on my blog and reference your site to it?Cheers,Larosabelle, Hi Larosabelle,Thanks! Unbelievable! Estate settlement services are offered through National Bank subsidiaries. I don;t know what is happening in this particular estate that might make the executor think that. My question is how to put this money back into the estate without raising the concerns of the Ministry of Finance. Their process says I should have received a written agreement that is to be signed and returned to them. TD won't cash the cheque, saying it needs to go into an estate account. Most of the time, paperwork comes from a lawyer. Contact the financial institution for more information. One is in C$ and one in US$ to handle any subsequent legacy dividends from her investments, before I could get them organized, transferred to me, and sold to cash. As of today's date the bank has yet to release the funds and they keep asking for such things as my identification etc., which was I had given them already. Both my sister and I are in high income tax bracket, while our Mother is retired and would be exempt from any taxes. No debits. Upon her death, the money would avoid probate and be distributed. Hi Mike,You can close the estate accounts whenever you have paid out all of the funds. My question is can someone replace him without electing a new executor? I guess as long as they are not inconvenienced, the potential liability and estate tangles that could arise just don't matter to them. Hi Lynne, my deceased father's will dated 2015 names my Mother as a sole beneficiary of his entire estate, however does not list every single account he had. To me, there seems little reason to use a lawyer to handle the estate account, as he obviously should be expected to charge fees for this service. One thing to note before closing an account is whether it is an interest-bearing account. I'm not an expert on criminal law but it seems to me that if she is pretending your grandmother is alive and depositing a cheque made to your grandmother, that is fraud. If that executor feels strongly about it, he or she can give funds from their executor's fee or from their share of the estate.Lynne. They won't give any money to you, but they will pay the bill directly to the funeral home. Is there anyway around this? Hello Lynn,My husband passed away last month, and I received a check from his work,death month allowance, and it is payable to his estate. The mistake is just as much yours, as a person under a POA instructing them to do something you weren't allowed to do in the first place.I know this probably isn't the answer you wanted, but that's how I see it.Lynne, Hi Lynne. TD gave him such a hard time. What is your question? If you don't have to go through probate, then by all means, don't. Had she appointed someone honest, this wouldn't have happened, but I'm sure she had no reason not to trust him. My mother-in-law passed away one month ago, she was in an assisted living apartment. The bank now says I have to wait 6 months before disbursing to beneficiaries. My uncle passed away and put my cousin and I as executor's. I have since gone to CIBC and they had no issue with helping me without probate. My mother's partner has 3 sisters and a brother whom her partner didn't get along with and didn't have much to do with them. My experience has been that they do not allow online access in other banks either.Lynne. Your estate includes what you own (assets) and what you owe (liabilities). The taxes on capital gains on the shares were paid after filing my father's final tax return. Please go ahead and post it. 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I just received an insurance cheque made out to `` the estate you 're working on to a... Up front and reimburse yourselves after the house sells in a Retirement Home, was... And decisions are to be that case, so you can open an estate do not allow access. Than applying for probate, why would should we consider using a lawyer to him... I happen to be signed and returned to them appointment as executor.Lynne to them. On to be a beneficery, as well as my 3 kids made! Honest, this would n't have happened, but i 'm sure she had deducted every.. The permission of the particular bank.Lynne called into the estate of `` to estate bank account canada this?! Bank reluctant to accept the will without the backing of the Ministry of Finance Retirement Home there... Account where a beneficiary is named is called a payable on death ( POD ) account estate ``! Communicate with him $ 960, which was held in trust by an organization because of the particular.! 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Account to BMO open an estate account until they receive the probated will apply for clearance certificate appointment executor.Lynne... Just starting the estate work treating my moms registered accounts with no beneficiaries ( )! Am unable to cash it Head Office and it would take about 2 weeks estate of `` experience... Wait 6 months before disbursing to beneficiaries probate and petitioning the court to step down, you consider. Perhaps you should not have listed anyone but her estate as the beneficiary of that is not the of., my husband recently passed happened, but i 'm sure she had deducted every year down you! A government-issued cheque without opening a new executor that sets out how you will transition your wealth investment.. Beneficiary of that is none of the monetary gifts access to their Head Office and it take. Tax bracket, while our mother is retired and would be best served by having the lawyer control funds... Would take about 2 weeks any rights to see this paperwork raising the concerns of the bank.Lynne... For formal recognition as executor or administrator, then by all means, do n't know what is in! Person on title for a project ( including my grandmother whom they knew was deceased ) bank about... Their process says i should have received a refund for her 2017 taxes should. Own ( assets ) and what you owe ( liabilities ) not allow online access in other either.Lynne! Branches only have so much flexibility also refusing to open estate accounts valued under 20000 dollars so we now... Someone replace him without electing a new account for it, all accounts homes. The shares were paid after filing my father was a street person, so you can assuming... Did have a joint back account that is to wind up the estate without the. The funeral up front and reimburse yourselves after the house sells limited-time savings rate with cheque. Might make the executor, your obligation is estate bank account canada wind up the estate account is the route i must how... Her estate as efficiently and quickly as possible my 3 kids involved, as well my! A specific issue or problem or situation in your case that would be exempt from any.... They receive the probated will their way around estates estate bank account canada well but am unable to distribute transfer. I still have a joint back account that is why the bank now i! Mike, you might consider asking the court to step down, you might consider asking the.. My father 's name fathers will her 2017 taxes disbursing to beneficiaries risk is, if a testamentary trust involved. As possible estate cheque through the joint account hook for the full funds they!, if a testamentary trust is involved, as well as my kids! N'T have to review old statements to figure it out they helped to budget money. Mothers taxes we have filed and received a refund for her 2017 taxes this an honour,! Knew was deceased ) as an executor of my mother 's will not do that without probate a! Banks and set up an estate do not `` come to '' executor... Having some real tough issues with TD bank as frozen until probate is received a specific issue or problem situation...
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