An Estate account is a different kind of account - it is a new account opened after someone has passed away, into which the Executor deposits the deceased person's money, from which the Executor pays the deceased person's debts and bills, and from which the Executor ultimately distributes funds to . Depending on how long you keep the funds untouched and whether you pair it with a premium chequing account, you can earn up to 4.60% on your savings (includes limited-time bonuses). The first stage of estate planning is preparation. Now is also a great time to set up a WILL because you never know when you'll need it. 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. A joint account is not meant to be used to avoid probate so the courts have cracked down on it.In my view, given all of what I've said here, no, you'd never get them to pay the probate fee. Please go ahead and post it. Opening a bank account if you're not a Canadian citizen. The bank ended up selling the investments March 26, 27 and April 7 which ended in a $90 000 loss. 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. This move was made 5 years ago when my father died with the intent to avoid having to probate the estate again all of this documented by my mothers lawyer. All the risk of the account falls on the executor, not on the bank. I don't see why a bank would insist on someone getting probate in order to operate an executor's account. I am the person who paid for the funeral and I already applied for the CPP death benefit. While I find this admirable in spirit, I am concerned as an executor whether executors can in fact make gifts that are not specifically covered in the will, especially as there are other residual beneficiaries involved. Not at all a fan of RBC, in fact in the process of switching banks myself. HI Lynn, My case is very complicated,it started with the land my mum bought 5 acres of land in Fiji and she got her first cousin Vana to handle things to sell the land which mum got many offers even for $450,000.00 but mum trusted her daughter-in-laws family the lawyer she hired and her cousin in Fiji.when our beloved mother passed away notary Sublock Sublock never even got mum to sigh her Will even though we paid $170 fee for that one home visit Mr.Sublock refused to help us and we sent mum's old Will which was Notarized and the Fiji Courts refused to accept it and my dad was next of kin now they said Vana and fiji lawyer Ulamila Tuipuku said that my dad needs to do a Probate and I sent $3,500 for court/lawyer/probate and months down the road Vana and Ulamila said that the court won't accept the Probate that they wanted her in my Dad's WIll which he "WE HAD A DEAD LINE OR LOSE THE LAND " we said that was crazy and we went through with that and so so and we went through Mr. Sablock again because he had the history regarding the land and my mum's information etc.My dad wanted to sell the land because there was squatters on the land and two churches was already built on land without permission and you wonder who was minding the place.When I made an offer to a performance on the land Vana was so upset she was yelling and I said okay you have 6 weeks and she said she already had the money and we'll we waited and waited for the paper work.When I tried from May 2012 til Feb 2013 to get the lawyer to send papers yo sell the land she was making all kinds of excuses and we sent thousands of dollars for court cases and the land .The thing is after my dad passed away the first thing Vana said is remember that I'm the excutor on the Will and no one can go above me and I was do she said none of your kids can go above my head and this just to show she knew what she was doing .We'll after all that she said that the land is in her name and the lawyer who was supposed to be working for my dad was working for her and went against both my parents. TD does not and all transactions must be processed in person. I somehow doubt this, but if yes, what additional documentation would be required?2.What are the ramifications of moving money from her account as it is today to myself for repayment? 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. They are saying they'll transfer it once you meet their requirements even though they are making that impossible.Consider making an appointment with the branch manager. Do I need to set up a trust account to deposit this for her? In such a situation, the funds in a joint account would then transfer over to your child, who can then distribute the funds according to your wishes without having to go through probate. Let's say your husband goes into the bank with the will and the bank releases the funds to him with no probate. My question is do I actually need a CAET or is the bank being overly zealous? I am the beneficiary to the residual. The other is to ask the funeral home to wait until the house sells. Everything else of my husbands, all accounts, homes,, RRSP's etc. I'd suggest sitting in with your banking officer and having a chat. Hi Lynne, our mother passed away in February this year. As far as the bank is concerned, your father's account is still HIS account and not an estate account until the probate has come through. The reason we were fighting is because our understanding is that the Will should trump every other document completed before the Will. I am an executor of my mother's will. When you stepped down, I assume that you did so with the permission of the court, as that is the only legal way a person acting as executor can step down. Paying out of pocket should be the last resort. My question is when can I close the estate accounts? Unfortunately, what you are trying to do is completely against all estate law, which is based on the documents that exist, not the documents that might have existed or could have existed.Your father left the RRSP beneficiary form with named beneficiaries. The bank at which I wish to open an estate account for my late brother insists on cutting cheques to his beneficiaries and dividing up his money right away. It'll happen. The loan would be repaid with interest before the final disbursements. She lived in a Retirement Home, there was no property or investments and just over $2,000 in her account. The bank will probably insist on having both signatures if the account is set up to require both signatures. Hope this not too confusing. 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. I went to deposit them and was told by CIBC that they drained the account and closed it 5 months after death? My sister was sole executor for my dads will two years ago with all three adult children as equal beneficiaries. i have a will, am the executor, and can open an estate account if necessary. They seem to think that at the point where Registered accounts are cashed out to the estate is when taxes will be owed. It clearly names me as the Estate Trustee. This meant the assets did not go through the Will, nor to my brother, yet all three banks released, the funds to my brother (2 banks, within hours of the day he and his daughter changed the POA to remove me, and just make it the two of them) it was almost a year, before my mother found out the POA had been changed, as she never asked for it to be changed. The probate is their indemnity against the deceased's funds to the wrong person. Why on earth doesn't she just do the paperwork before this all hits the fan? After months of us complaining they offered us to prepare a Disclaimer(?) This had to go to their Head Office and it would take about 2 weeks. Check the motor vehicles registry web page in your province. When my husband left , he said they did not care, they were not there to help, they would not listen and talked over him.Needless to say, no estate account was opened. It's as if the deceased were being taxed, rather than their heirs. Lynne, Hi Lynne,I am being assigned as an executor for my grandma's estate. I am a retired Branch Manager from another financial institution, so her attitude did not sit well with me and basically this manger argued with me on the phone. The ONLY cheque to come in was a refund from the cable company (5 months after I cancelled her account, PRIOR to her passing), and it is made payable to her estate, with my name and address underneath. Are you telling me that these are decisions being made by the bank or the financial advisor?? My brother lives two provinces away. If they won't transfer the funds directly, empty the accounts by having the bank prepare drafts written to the estate. Is there anyway around this? 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. 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. If there is not enough and you have to take funds out of the sale of the house, then you have a couple of choices. 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. The bank has no issue with this and, as I said, we are the only beneficiaries. What's the easiest way to cash it. I've been trying to open an estate account for weeks and have been hitting roadblocks everywhere. Also I was named sole beneficiary of this cheque (insurance claim), Hi there my husband and deseaesed father in law had a joint account together now my FIL didn't have a will..can he still deposited life insurance cheques into the personal account (only child) or will he still have yo open up a estate account ?will our lawyer still have yo go to court to make him executar of estate? 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. 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. must i wait for court probate? It's never speedy at the best of times, but it will be longer if there is confusion over who is supplying what papers.Lynne, Hi Lynne,My Step daughter has an estate check for her and my son. You'll have to make sure the whole story is told to the court in your application for probate. I'm very glad you got this resolved quickly.Lynne. Most of the time, paperwork comes from a lawyer. Thx. Our property is the same size. You were correct when you suggested an account set up as "Administrator of the estate of Jane Doe". Had she appointed someone honest, this wouldn't have happened, but I'm sure she had no reason not to trust him. Executor & Estate Bank Accounts. My sister lives in the same province as my deceased father. Unbelievable! Does the annual audit of accounts reflect this inaction? 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. The bank had a copy of the will and death certificate .. now what do I do with these cheques I recently got? I will ask the bank. Only debtscredit cards, car loan and revenue Canada as well as money owing to Eastern health for medications. Open an account online in about 20 minutes or apply in-branch. I'm not aware of anyone charging a fee of $350 for an executor's account either, so I can't explain the rationale behind it.As long as you have properly been appointed by the will as the executor, then the bank must release the funds to you. Banks do have an alternate process in place for cases like this where the cost of probate would take the whole account. My sister had a chequing account and she passed away without a will 7 years ago. If he will not clean it up voluntarily, you might consider asking the court to remove him. The bank has no say on what or who gets paid. was all joint or myself as designated beneficiary. This bit about the banks not allowing executors to open an estate account until probate has been granted is relatively new, and only works for the bank. As there was only cash in his estate I did not set up an estate account - the death benefit cheque was deposited to his account. The contents of this website must not be interpreted, considered or used as if it were financial, legal, fiscal, or other advice. He had no will. Yes, it is alright to keep the cheque, since he was alive to receive it and sign it. I can completely sympathize with your situation because I have my own ongoing battles with banks' legal departments on my client files.Whether or not the people at the legal department can read the signatures, the judge of the probate court could, and did. My mom had around $800 000 of chequing and investment accounts. However, what do you mean by joint wills? However, an executor does have the right to use whatever bank he or she chooses, and it makes sense to go where you feel comfortable and have received good service. How can he sign papers, cheques if he is not physically able to do so? We are also the only two beneficiaries. There was no will.Thank youWendy. Any recourse with these morons? Hello Lynne.I am the executor of my fathers estate. 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. I was told by my mother's doctor, at the time, that she may have as little as 4 weeks to live (but she lived just over 3 years, so it was a hardship, as it was over $100,000 in total) but in less than 2 weeks the money was gone, before the doctor even talked to me. I was told I would have to open a personal account in my name. In my view, you are doing exactly what is supposed to happen - even though the accounts are in joint names, you are treating the accounts as assets of the estate. Is it not sufficient I show it to them?Thanks, I don't know what the HELL is going on with banks these days. However, a year has passed and she is reluctant to distribute half of the account to me. I think I have been reasonable, but am now also very unsatisfied by the response by the ombudsman's office and told them that when they called yesterday to 'loop back' on my complaint. I am the executor of my father in laws will. My three sisters and I are the beneficiaries, however my mother had no assets and lived with us. We have one year remaining on the lease of the house we are renting, and her portion of rent will be drawn from this account as well. 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. On the Statement of Death I was named as next of kin as I was always the one with Mom taking care of her affairs. 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. I am sole trustee on an estate, appointed by Superiour Court (Ontario). On to your question. Perhaps the house would fetch more if it were repaired and restored, but the executors will have to balance that off against the cost of repairs, the cost of insurance and property tax during that time, the odds that the market will stay strong, how much of a gain in price there is likely to be, and the patience (or lack of it) on the part of the beneficiaries. If that gets around, that bank is going to see every cent owned by a deceased person put into estate accounts in other banks that are more reasonable.Lynne. Accounts are not always frozen. Paying out of pocket should be the last resort. The probate was finished March 9 and that same day I gave the probate papers to the bank. My husband passed away recently, I am the sole beneficiary and executor of all accounts, TFSA, GIC's. 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. Even the bank manager was surprised they had no mechanism to inform clients. What if there was a mortgage on the property (there isn't). Now, at the 11th hour, she wants to be compensated for administering the estate, which we both did, but she feels she is entitled to more than me and I disagree. If it is simply her account, then you need to close it and open an estate account in your name as administrator. Also before closing an account, make sure any estate payments are not scheduled to be deposited into the account and there are no pending checks or charges. Every time I get another unsatisfactory response causes more stress at an already difficult time. Upon her death, the money would avoid probate and be distributed. It's 2500.00. What's the real deal here? If that doesn't work, go across the street to their competition, tell them your story, and open the account there.Lynne. I was told in the beginning the less money in the account the easier it will be to close out I have a felling this isn't so. Clip: "If you're an executor, however, you can open the [estate] account at any time once you take charge of the estate. 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. Will I have to fly to that province to sign the cheques or is there something that is sent to the bank to release the cheques with only one signature? Will I need to open an Estate Account? I hope other parents read your story because it shows just how careful you have to be when appointing your own kids. That sounds wrong to me. Estate planning, wills and dealing with death Making a will, planning your estate, powers of attorney and what to do following a death. The bank is treating my moms registered accounts with no beneficiaries (rrsp/lif/rrif) as frozen until probate is received. Through the firm that handled my mothers taxes we have filed and received a refund for her 2017 taxes. Because the cheque is written to your father's estate, it wasn't a part of the joint bank account and won't pass automatically to your mother.The bank's interest is, of course, to minimize its own risk in releasing this money to your mother. If a CRA refund is the only asset in the estate, talk to the bank and ask if probate is really necessary under the circumstances. Let's say my sister's name is Jane Doe and I'm Sara Smith. Of course they are not allowed to change your father's beneficiary designation. (I was not asking any info on the account only about their requirements for an Estate Account) but she jumped on him immediately and would not listen. Lynne. the bank of the deceased rejected an ATM deposit to the estate bank account. The bank has all information needed, and said that it should only take a day or two to have funds transferred. The Momentum PLUS Savings Account is Scotiabank's high-interest savings account and offers a base rate of 1.60%. A couple of weeks later Mom passed away. I went back into the bank and asked to speak with her and again I had to leave my name and number. They are doing the right thing and you are ignoring how your father in law had things set up.Lynne. There are no inheritance or estate taxes in Canada. The banks set their own limits on how much they are willing to risk without obtaining probate.Lynne. 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? 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 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? He did not leave a will. 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. He had a will and I am his sole beneficiary. Before closing an account, it is important to check to see if there are any automatic payments from or to the account. Please advise, No, you don't have to wait for probate. Please advise. 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Funds directly, empty the accounts by having the bank is treating my moms Registered accounts estate bank account canada out..., the money would avoid probate and be distributed is received on someone getting in! In her account, it is simply her account, then you need to set up as `` of... Gave the probate is received the wrong person handled my mothers taxes we have filed and received a refund her!
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