estate bank account canada

It is absolutely unworkable for executors.What we do for our clients here is calculate the probate fee and prepare a document that we call an estimate but looks much like an invoice for that amount. Several expenses were incurred and paid from my own pocket while waiting for the probate to be granted. This is because a grant of probate is an order of the court that indemnifies everyone who follows it. All Canadian banks apparently have their own rules regarding estate accounts and probate. Hello, I have a two-part question.I am the executor listed in the will of my deceased mother. my father passed away and only had $960, which was held in trust by an organization. Yep. Ask them to pay the bill from his chequing account. Is there a specific issue or problem or situation in your case that would be best served by having the lawyer control the funds? Through the firm that handled my mothers taxes we have filed and received a refund for her 2017 taxes. We have since sold her house and the lawyer is going to have the cheque made out "to the estate of" and would like us to agree on who will receive the cheque to deposit. She died in January, but now Empire Life says that they made a mistake in allowing me (as POA) to name myself as a beneficiary and want to make a cheque payable to the estate. Try to take the wishes of the beneficiaries into consideration if you can. but i have a tax refund cheque payable to the estate of xxxxx. TD won't cash the cheque, saying it needs to go into an estate account. He has suffered a stroke and is slowly recovering but very difficult to communicate with him. If you haven't wound up the estate in a year and there is no good reason for it, you could end up in a dispute with the beneficiaries and possibly in court.Lynne. I was told I would have to open a personal account in my name. 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. Lynne. Hello Lynn,Is an executor allowed to pay expenses out of the estate account prior to probate being granted? Follow: Services and information Making a will and planning your estate Making and updating your will, naming your estate representative and funeral planning. CIBC had no problem setting up an estate account on provision of the will; RBC would not do that without probate. Hi,I'd like to know if it is absolutely required for an estate account to be made.My grandmother passed away and there are only two beneficiaries, my mother and I. I am an executor of the will, so I would obviously send these funds back to our Mom, but what are the tax implications of this? Do I just carry on as executor of the will or should I be administrator? Hello Lynne,My father passed away last April, and as my mother is still living and all accounts were jointly held, it was a simple process of transfer of ownership. My husband recently died before he could receive (as sole beneficiary) money from his mother's estate who had predeceased him by 2 years. If not, you might try escalating your request up through the bank's channels until you find someone willing to actually make the simple change. Getting the will to Probate is going to take a bit of time. However, what do you mean by joint wills? 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. My question is can someone replace him without electing a new executor? Hi Lynne.My mother passed away in September and my brother and I are co executors. Should I see if the back will do so as it did previously as it knows me or just go to set up a estate account?Thank you for your feedback. I am the executor of my uncle's estate. Given that the amount of funds in question is substantial, I wouldn't be surprised if they tell you they want probate.The bank might give your mother a break on this requirement, especially if she continues to keep all of her investments and accounts with them.Lynne. You then take the drafts and deposit them into the estate account. Thank you. Until then I have to ask for a balance and any bills I need to pay out of the account will have to be by bank draft. Just be sure to keep detailed records of what came in and how you used the funds so that you can explain it all later.Lynne, My mother was killed suddenly and although she requested I be her executor she neglected to sign her will properly. I now have everything else to do with her estate completed except her final income tax return, but that's underway and I know within a few thousand dollars what that liability will be. Since I only have about $500 a month to live on after the bills are paid, I can't afford it. The loan would be repaid with interest before the final disbursements. Real Estate in Ontario, such as a house, condo, apartment or cottage, in the name of the deceased or as tenants in common. Note that the credit union confirmed probate isnt required as the total amount of the estate is around 10,000.Thank you. That's not going to work either. The banks have always agreed to this (with only one exception) because the funds aren't going to the executor or anyone else besides the court. It's under $75,000. I have seen copies of the draft and the amount in the Estate account that was left in March, so I know this is the last big payment left. i have a will, am the executor, and can open an estate account if necessary. Are there restrictions or did I just draw an uninformed bank employee? 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? Did the TD bank error in allowing this as she was only one of three executors? I want to pay his bills first and then divide up whats left when I know there are no more debts to pay. They will continue to do this until a beneficiary sues them. I certainly hope that the bank will verify by looking at the will, as this is what they are supposed to do. The person you choose to administer your estate will use the account's funds to settle your debts, pay taxes and distribute assets. I don't know what you've got in mind when you mention recourse. Thanks! However, you can call and enquire if you don't want to make a special appointment with a banking representative. Estate settlement services are offered through National Bank subsidiaries. If it is only bank policy and not law, however, I am going to protest this, as my brother was laid off a while back and could really use his share of the funds now. 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. It also excludes financial accounts that already have a beneficiary designated. Because these accounts are assets of the estate, you will have to get probate to distribute them.Lynne. Yes, you should should go to the bank to set up an estate account, and no you shouldn't need probate to do that. Probate is slow because her state pension came from UK along with a small occupational pension. Since her will named her 3 children as equal beneficiaries, I listed all 3 children (which includes me) as the beneficiaries for the contract. My lawyer has said the same thing. You may be named in a will as someone's estate representative. It's now over a year since our relative's DOD and delays are almost all due to the executor's actions or lack thereof. I was advised around that time by the branch manager that an account estate should be opened by the first week of August.It is now August 8 and there is still no estate account. (In case my brother contested the Will, I would still get the money). Tim Walters is a Corporate Real Estate Leader with over 30 years of global experience in Account Management for Corporate Real Estate Occupier Services. Please go ahead and post it. CIBC requested personal ID documentation for each and every beneficiary on the account which I supplied although I was hesitant to believe the Money Laundering Act actually requires it. Instead I seem to be stuck mingling assets with my own money, which seems like a terrible idea. I believe you are wrong about avoiding probate because of the joint account. Try going to the bank where your son had his accounts, since they will have records of him, etc. Working with banks can be tricky, because they don't offer their employees much training with respect to estates. Paying out of pocket should be the last resort. I have some Estate litigation lawyers names but want to know if I can realistically get her to replace that cheque so I can have my money. Are they allowed to do this? An executor can never use estate funds for personal spending. Do I have a case? If I open an estate account and deposit the funds from both accounts(100,000) dos that account have to be probated? Hi Lynne: Great and informative blog.My husbands uncle died recently. Giving Power of Attorney Isn't it the point? TD gave him such a hard time. I would like to make a full distribution of the estate proceeds without waiting for her 2018 taxes to be filed next year. 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. How long should it take for a bank to open an estate account? Ever.The executor must wait along with everyone else for the estate to be wound up to get his or her inheritance.Either you are mistaken about the financial obligations of an executor, or I'm reading your question incorrectly. What kind of taxes will estate have to pay and can estate have an RRSP account?? Keep the concept of the executor's year in mind. Is this really 2017?Anything you can do to help would be greatly appreciated!Thanks.Fred, Personally, I don't see the difference in an online account for an estate and an online account for an individual, once you have established your credentials as the executor. Do I have any rights to see this paperwork? His house is worth 500k. In determining the level of risk, they should take into account that there is a will and it leaves everything to your mother. Also consider the fact that when a lawyer holds funds in trust, the interest earned on the funds is paid to the Law Foundation and not to clients. 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. However this has affected how the tax slips have been filled in. Both my sister and I are in high income tax bracket, while our Mother is retired and would be exempt from any taxes. My bank, BMO, charges nothing for an estate account. There is another 400,000.00 in GIC's and a house in my father's name. I have yet to open an estate account and her accounts remain open. Lynne- Using the example from Marsha: Can the account have links to automatic bill payments with registered companies, so all three trustees don't need to be in person to pay every single bill? My dad had no will, no spouse and i am his only child. Hi lynne,My mother passed away in late October. Lynne. Lynne. Or do they receive (in my case, beneficiaries are to receive monthy from estate) beginning when the funds are ready to be dispursed? Thanks for your opinions. However, keep in mind that as an executor, your obligation is to wind up the estate as efficiently and quickly as possible. If he will not clean it up voluntarily, you might consider asking the court to remove him. I know this because I spent 7 years at Scotiabank doing whatever I could to help out the front line staff dealing with estates. They are the ones trying to follow the law. Hi Bob,I would be very surprised if the bank did not allow you to sign a letter of indemnity under the circumstances. TD bank estate account has not been closed and balance on the account has been in the estate account for seven years. However in the last through s of her life when I could see the end was at hand I put as much available cash in this account because I knew joint accounts would avoid probate. 8. You don't have to wait for anything but the cheque to clear. My sister and I are both trustees for my mothers estate account. That is my main concern now. Keep all estate funds separate from your own. Hope this helps others who deal with RBC regarding non probated wills. The bank has frozen any access to these accounts until a declaration form is received at the branch for me too sign. I attempted to open an estate bank account along with my co-executor and was told I would have to wait until the Court issues the probate letters. You don't need probate to operate an estate account.Lynne, I have been named as Liquidator of my ex-husband's estate. She has money due to her from the other UK source, but when I asked for the overseas sort code for her account I was told the deposit wouldn't be accepted because the account is not yet an estate account.Mylawyer tells me TD is even worse to deal with re estates, bottom line is check with a bank about their estate account policies before you have a bureaucratic nightmare on your hands. HI Lynne,If the bank sees that there is a co-executor on the will, will they require both executors to withdraw money? A couple of weeks later Mom passed away. The beneficiaries are prepared to put some money into the pot to cover the probate costs and other debts until I am named estate trustee and until which time we can sell the house and assets. Should I be opening up an estate account in the deceased name? Is it not sufficient I show it to them?Thanks, I don't know what the HELL is going on with banks these days. So i'm very confused. I suggest you read the 2007 Supreme Court of Canada cases called Pecore and Saylor. Once you are proven to be the executor, the bank has no control over what you do with the money because they bear no liability. Once everything is in order - do the beneficiaries receive there funds retroactively from date of loved ones death? Your husband's estate is separate from him. Will i need a letter of administration to open an estate account or will my bank let me sign a letter of indemnity? I could look at them online, print transaction records, and transfer funds in or out if necessary or as required. There are debts owed (including this financial institution which is a tenant in one of the properties). My mom's estate is about $325,000 cash, which is being managed by Wood Gundy. I want to ask my question to the bank but can I get your consent first? Will I need to open an Estate Account? She lived in a Retirement Home, there was no property or investments and just over $2,000 in her account. I paid for the engraving on her headstone (she had a double one as Dad passed away in 2011 and we just needed to add the date of Mom's death). Every bank will have an estate department that deals with death and living wills. He had a will and I am his sole beneficiary. She had one (nonjoint) bank account, a TFSA which had some money in it. Mum's UK state pension was overpaid by 1 week, having finally received notice of the amount, I now have to reimburse that myself because RBC refuses. She had no idea if I was a TD customer or not. 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 can see from the way you've presented your question that you believe the risk of anything or anyone popping up is pretty low. You have the right to deal with the account as well as the risk if you screw it up, so they aren't in a position to put up any resistance.Lynne. Do I have to go open an estate account for,this one cheque. Have a great day. 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. To open any bank or investment account, you'll need a taxpayer ID number for the estate, which is itself a taxpayer. I have Mom's taxes done for this year. Is it legal for my mother to deposit that cheque into that joint account.? Since I am solely responsible for doing this, am I able to disburse some of the funds right away as long as enough is left in the account to cover income tax and any unpaid bills? They refuse to transfer the assets in those account over to the estate account until they receive the probated will. Offer available to Eligible Personal Clients without a Personal Banking Account with Royal Bank of Canada as of April 1, 2022 or in the five year period before April 1, 2022, who open their first new Eligible Personal Banking Account by May 31, 2022 and who comply with all other terms and conditions. I have just received her CPP funeral benefits paid to the estate as we were unaware her will had not been signed correctly until after the funeral. They will not liquidate any account of any kind worth $500,000 without either probate or Letters of Administration. I went into the bank again and asked to see her but she was in a meeting so another representative took my name and number. 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. She also signed up for internet service to manage dads estate. In fact I never actually did this as she was quite capable herself. Thanks. What are the alternatives if a bank will not open an estate bank account without probate? The bank also notified me that they can't open an account in branch and I would have to wait 2 weeks for the estate account to be set up. I am in BC. If all of that is paid up, the funds go to his beneficiaries. You can't just add your name to an existing account, as that would suggest that your sister is alive and you two are joint owners, which obviously cannot be the case.This is the only thing that makes sense to me in the context of your question. Please advise. I don;t know what is happening in this particular estate that might make the executor think that. As his mother I took care of his arrangements and the funeral home applied for CPP. I opened an estate bank account in BC where I live. Geography means I cannot do it in person. Before the probate, I met with the bank stating they would set up an estate account, but it came to my understanding when the probate was finished they did not make an estate account yet. Hello My 24 year old son passed away oct 28 i found his gst cheque dated oct 5 that he signed is it ok to cash it or wat do i do ? The judge has discretion to deal with the will. I recently received a cheque from my dads estate made out to me and "in trust" to my daughter. Received his last Canada Pension cheque, issued in the month of his passing but am unable to cash it. You were correct when you suggested an account set up as "Administrator of the estate of Jane Doe". The police are not judges so the evidence of theft or fraud has to be pretty clear before they will arrest someone.You are right that it costs money to enforce your rights. I know, everyone thinks that this joint account thing works, but they find out differently when the parent passes away. You'll have to make sure the whole story is told to the court in your application for probate. I have all the receipts and this will be documented in the final accounting but I realize this may not entirely be legal. It should list there what paperwork they need.
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