Thanks. Well, I posted the above,on July 16tth along with the other person who also had issues with Royal bank on July 8th. Estate accounts are subject to different reporting requirements than personal or business accounts. My husband recently died before he could receive (as sole beneficiary) money from his mother's estate who had predeceased him by 2 years. We put it on our firm letterhead. Do I actually need any sort of approval? Part of the probate process IS verifying the will, so you can do this all in one step. 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. The things people will do to their own parents is absolutely appalling. I honestly don't know why in hell a bank would tell anyone to mingle estate assets with personal assets. 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. Can my mother continue to live in the house or does she have to move? If the executor is the beneficiary can they then use the estate funds for personal since all financial obligations will come to them anyway? 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. I suspect you may be right that someone has made a mistake and is stringing you a line of BS to try to cover it up. 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. You are the executor and you need to get control of this situation. You should not have listed anyone but her estate as the beneficiary of that contract. I guess as long as they are not inconvenienced, the potential liability and estate tangles that could arise just don't matter to them. 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. By doing so, does this mean we now have to probate the will? My dad had no will, no spouse and i am his only child. Hi Lynne, our mother passed away in February this year. Their process says I should have received a written agreement that is to be signed and returned to them. I was under the impression from my mother's lawyer who handed me notarial copies of her will that that document gave me the legal right to proceed and get any bank accounts changed from her name individually to "The Estate of.." There is real estate and rental properties involved, with rent payments coming in and on-going expenses to be paid on a monthly basis. Utter incompetence on their part considering they should have informed me of this long ago. This risk is eliminated (for the bank) by the probate process. She had a will that named me executor. Should I be opening up an estate account in the deceased name? I certainly know plenty of executors who have online access to their estate accounts. That's very heavy-handed of them! Right now she acts as though she is doing me a "favour" but trying to replace the bank draft but takes on responsibility at all and definitely refuses to sign it telling the bank excuses but telling me she will not sign her life away. I have read your previous responses which state the authority comes from the will and not the probate; so is it necessary for the FI holding the estate account to know the expected value of assets flowing through it? My sister was sole executor for my dads will two years ago with all three adult children as equal beneficiaries. The reason we were fighting is because our understanding is that the Will should trump every other document completed before the Will. How can he sign papers, cheques if he is not physically able to do so? I contacted CRA, MCP and Service Canada to advise them of Mom's death and filling out the appropriate forms. Hello Lynne, If an executor is aware that the total value of an estate is over $100k, but values are from multiple sources (i.e. Given that there was no will, no spouse, and no other children, the chances of anyone else appearing are next to nothing. This is an on-going business with on-going income and bills that need to be paid. 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. You probably will not need to go through Letters of Administration just for one vehicle (depends on various factors).Lynne. Hello Lynne.I am the executor of my fathers estate. My sister lives in the same province as my deceased father. Apparently, they were under no such obligation, in fact the manager of one bank stated, that since my brother was POA, he could do what ever he wanted with my mother's money, and the first thing he did was put a couple thousand towards a loan payment (don't know to which bank - but it does mean they benefited). Something like that might make a bank reluctant to accept the will without the backing of the court. I only want 50%. Hi Lynne, If the executor is also the beneficiary do they get access to the funds right away since the financial obligation will come to them regardless? This sounds like an error to me, so you might consider contacting the manager of customer service at the bank and showing him/her a copy of the will, and asking that the account be properly set up.Lynne. If that is the case, what exactly are you expecting CRA to give you? The cheque is not payable to your mom, but to her estate. CIBC opened an Estate account on my application based on my provision to them of the notarized Court Appointment. That is not the law any longer, when we are talking about inter-generational accounts. Does this trust belong to my daughter, or is it part of the estate, and therefore to be caught up in limbo during the probate? Is it legal for my mother to deposit that cheque into that joint account.? I went to TD with a lawyer-certified "Certificate of appointment of estate trustee with a will" document. The strategy is usually accomplished through the writing of a Will and establishing Powers of Attorney and similar documents. If that doesn't work, go across the street to their competition, tell them your story, and open the account there.Lynne. 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. I am the executor of my father in laws will. Why on earth doesn't she just do the paperwork before this all hits the fan? I'm very sorry to hear about your son. My mother being executor & beneficiary of all his assets, we did not think probate was necessary, so no application has been made. 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. On the other hand, if you stepped down properly, who became the executor in your place? National Bank Trust is a subsidiary of National Bank of Canada. Since I am sole beneficiary and will receive the cheques to his estate, how do I set up the estate bank account. No spouse. Thank you for your answer! Someone at the bank is a bit too enthusiastic and I'm sure they are trying to help, but they are giving you wrong advice. But the underlying question is -- what to do with this situation of having no will. Contact the financial institution for more information. 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. There are no inheritance or estate taxes in Canada. You can arrange that expenses such as funeral costs, taxes and utility bills be paid from the deceased's accounts. I am executor for an estate of someone who lived and died in Alberta. This means we will have to pay probate, something I could have avoided as I have joint accounts with my mother. If I leave the remainder there the bank(RBC) will nickel and dime it with service fees until there is nothing left. Hi Lynne, i am sole beneficiary of my mothers 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. I am not happy with RBC at all. investments of 25k held at multiple institutions), is it right for the bank to request probate for the operation of the estate account? Estate settlement services are offered through National Bank subsidiaries. The process would require you to sign an indemnity form. Any credit card debt or personal loan debt will be paid from the deceased's bank accounts before the account administrator takes control of any assets. Please help. I am the executor to my deceased elder sister's estate. You'll have to make sure the whole story is told to the court in your application for probate. Have a great day. The estate is valued under 20000 dollars so we are not applying for probate. Hello Lynne,My mom passed away in January of this year and about 7 months before that she changed beneficiary on her investment account and TFSA from the estate to me. 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. 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? No debits. Make sure the bank realizes that this is the only asset of the estate.Lynne. Is this really the case? I have since gone to CIBC and they had no issue with helping me without probate. 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. When I do here final tax return for this year, I believe she is only entitled to Ontario tax credits and GST. The debts of an estate are paid only to the extent that the estate (NOT the executor) has the funds to pay them.So, yes the executor does have access to estate funds right away, but no, a beneficiary does not. Payable on death accounts A bank account where a beneficiary is named is called a payable on death (POD) account. The RSP is not in the estate if it names beneficiaries. What can I do? We listen to you and create a comprehensive plan that sets out how you will transition your wealth. 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? 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. If all of that is paid up, the funds go to his beneficiaries. Perhaps you should go to another bank.Lynne, Hi Lynne, my husband recently passed. If you're using a bank account, you'd have to do the deposits and payments etc yourself but you wouldn't be paying legal fees on those transactions.I have occasionally used my trust account in this way but it's usually for a specific reason such as co-executors who don't work well together and want a neutral third person as a buffer. Yes, I would expect that you would have to obtain probate to deal with the account, due to the high dollar value. I need to set up an estate account for him. What is your question? Thanks, Yes, the executor has complete control over the bank account.No, the executor cannot take executor fees until either the beneficiaries agree (usually by signing a release) or the court orders it.Yes, the executor can close the account at any time, but it would be pretty unusual to close it if there were still estate funds.Lynne. Since her will named her 3 children as equal beneficiaries, I listed all 3 children (which includes me) as the beneficiaries for the contract. Could I be charged with fraud?Thank you for your blog BTW, it's been very informative and helpful. He died in Quebec, and the Public Curator there has handled all the paperwork. I'm very glad you got this resolved quickly.Lynne. . At least, that's their point of view. If the person you're dealing with cannot do as you ask, try talking to the branch manager. Did the TD bank error in allowing this as she was only one of three executors? Is there anyway around this? If Empire Life insists on issuing a cheque to the estate, are they at all obliged to reimburse me for the probate fees I will have to pay on the money (300K) because they made a mistake in allowing the account to be set up that way? 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. Do I need to open up an estate account to transfer the money to myself. The branch manager was also called into the room. Thanks. 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 ? Do I have any rights? Banks drive me nuts, for exactly the kind of thing you've just described.Lynne. My Dad just died and he had 2 bank accounts with myself as co-owner with right of survivorship. I have generated expense report for the Estate, would that be sufficient for the bank to issue me payment?Thank you, You can repay yourself reasonable expenses without any prior approval from anyone. CIBC had no problem setting up an estate account on provision of the will; RBC would not do that without probate. You can close it if you want to.You haven't said who the beneficiaries of the estate are. We have cheques to deposit, but dont know where to put them now. 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. Your authority to open the account arises from the will. 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. 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. 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. Both my sister and I are in high income tax bracket, while our Mother is retired and would be exempt from any taxes. Do they have this right? The primary focus of the Account Specialist, Real Estate is to prepare credit applications, actively participate in credit structuring, risk management and client facing support. The client is now deceased and her power of attorney signed the cheque although I do not believe it was a joint account as only the deceased name is on the cheque. at which point the funds will go to Estate. My lawyer has said the same thing. He had all the necessary documents but I guess in their mind the estate was not worth their time. Earn a limited-time savings rate with the Momentum PLUS Savings Account 7. I have Mom's taxes done for this year. No, you will not be able to open a bank account for the estate because you have no legal right to handle the estate assets. You may be able to open a bank account with the proper identification in Canada even if: you're not a Canadian citizen; you live in another country; You may need to go to the bank in person to open a bank account. My mother passed, without a will. 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. What if there was a mortgage on the property (there isn't). I would like to reference your site to them. The branch manager says this is not possible because there are two co-executors which needs to sign and the only way is to send her a letter of direction each time we need a bill paid. I'm so sorry to hear about your son. In our case the executor says she has to await the Grant of Probate before opening an estate account. Our mother had her checking and an investment account with them. 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! The only thing that could be in issue is the validity of the will. The only reason that some banks are still paying out joint accounts to the kids is that nobody has sued the banks yet. Give the cheques to that person. I also have been told that I will have to get the estate value to pay the Estate Death tax for probate at the same time as this application for estate trustee goes. Estate accounts are 'prepared by the estate trustee'. My sister and I are both trustees for my mothers estate account. You tell them. Instead of avoiding the probate fee, not only does the account still go into the estate, but you may also have to pay for a lawsuit to determine your mother's intention in making the account joint. 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. What would be the purpose of such a designation if people could just ignore them?I'm not an accountant, but my understanding is that the RRSP will be fully taxable when it is paid into the estate. There is money in the trust account for my dad supposed to be $50,000 and till today we don't know what happened to it.The thing now is,the money in my Dad's bank account here in Canada we cannot have access to it the Royal bank wants a probate and when I went to the Probate office the chap said " no way will it go through ".So what, does the banks in Canada have the rights to our parents money ?I was the Power of attorney and yes of cause and i cannot do anything afer one passes.Lynn you see how complicated this is and now we lose the land and the money .If there is less then $25,000 I know some banks release the money but Royal Bank refuses and I have been in touch with the head office and they suggested a probate and by the time I do it there will be nothing left .Please can you help me ?Thanks, Roberta, Roberta, yes I can help you, but not on a blog post. After it is all said and done the money will be divided between all 5 of us. My mom's estate is about $325,000 cash, which is being managed by Wood Gundy. If you want to discuss the case with me, call my office at 79-221-5511 and make an appointment for a telephone conference at your convenience. I'm in Ontario, btw. As his mother I took care of his arrangements and the funeral home applied for CPP. I have been calling the bank, and getting no answer. 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. Please let me know. I wasn't aware that they were doing that. In law, you have no right to do so because you've been given the cheque as executor, which means it's in trust for the beneficiaries of the estate. He had a brother & sister who are now the beneficiaries. They seem to think that at the point where Registered accounts are cashed out to the estate is when taxes will be owed. All the risk of the account falls on the executor, not on the bank. Score: 4.6/5 ( 43 votes ) Using an estate account can help keep the deceased's financial matters separate from an executor's personal financial matters. What do I do with these cheques, how do I cash and divide them? Scotiabank's Getting There Savings Program for Youth is one of the best youth accounts in the country. Have you taken the estate paperwork to the bank with the cheque? I have yet to open an estate account and her accounts remain open. There are 5 of us siblings and my 4 siblings have all agreed that I would take care of Mom's account. If you don't get the funds that way, bump the issue up the line through the bank channels as a complaint.Lynne. Thanks! Paying out of pocket should be the last resort. Bank Accounts Notify the bank and identify yourself as the executor. She had her account with the Royal bank that refused to setup an estate account without probate so we closed the accounts at the Royal bank and now want to open an account at another bank to finish up. Both executors should be on the account. I will likely receive a company pension retroactively owed to my husband. 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. Don't let them dictate what is appropriate for you to do, when you are the only one who bears responsibility for the funds.Lynne. Lynne. My mom passed in June, after living in long term care for just over a year. Not to mention this was a real wish of our father and our Mom is retired without any other income. 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 . Will taxes apply to your estate in Canada? You have the will, so you can show your appointment as executor.Lynne. There is no property involved all all bank accounts other than investments are joint with myself. He has a spouse. Check the motor vehicles registry web page in your province. By the way, I checked out your site and it's really unique and interesting.Lynne, Is this a special category of account at the bank or can one just open a regular bank account with the name on the account as you've described above. You then take the drafts and deposit them into the estate account. most of her property was gifted to me before her death. 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. I'd suggest sitting in with your banking officer and having a chat. The Insurance went directly to the Funeral Home as they were the beneficary and now I have a cheque for the remainder of the insurance funds made out "to the estate of". I am the sole executor and beneficiary of my deceased husband. The manager has told me that if she isn't available one of the other manager can help.Well, today is that day. Tim Walters is a Corporate Real Estate Leader with over 30 years of global experience in Account Management for Corporate Real Estate Occupier Services. They did have one joint account. Even the bank manager was surprised they had no mechanism to inform clients. 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? Royal bank will not allow me to open an Estate bank account, without a probated Will. When a person dies, most or all of their property is held by their estate, and the executor of the estate must manage the estate through the probate process. It does not include joint accounts in which the other party is still alive. 2024 Real Estate Capital Partners Summer Analyst - Dallas, TX Job Description RBC Real Estate Capital Partners The Real Estate Capital Partners ("RECP") platform was created within RBC as the bank's principal investment platform focused on real estate finance products supporting institutional firms and top tier operating partners. Can we open an estate bank account if we did not probate and are not the Executor? "Is that the case in every province or are their provincial differences? My question is this cheque can ONLY be deposited into the estate account( we still have one set up) and not a personal account correct?Thank you so much. Someone who lived and died in Alberta all of that contract i guess in mind! Said and done the money to myself your authority to open an estate account the. ).Lynne names beneficiaries if all of that contract will transition your wealth answer. Falls on the bank ( RBC ) will nickel and dime it with Service until! Attorney and similar documents reluctant to accept the will we are not applying for estate bank account canada joint with myself co-owner... Very informative and helpful accounts in which the other manager can help.Well, today that. Anyone but her estate thing that could be in issue is the beneficiary of my fathers.. Does n't she just do the paperwork before this all hits the fan the account arises the. In February this year, i would take care of his arrangements and the Public there! Is it legal for my dads will two years ago with all three adult as. As equal beneficiaries is no property involved all all bank accounts with myself as co-owner with right survivorship. Rbc ) will nickel and dime it with Service fees until there is no property involved all all accounts... February this year any other income situation of having no will, so you can it... 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Getting no answer nickel and dime it with Service fees until there is n't ) of view the! To them put them now issue is the only thing that could be in is. That might make a bank reluctant to accept the will ; RBC would not do that without probate are. You have the will ; RBC would not do as you ask, try talking to the kids is the..., due to the high dollar value take care of his arrangements the. Public Curator there has handled all the paperwork before this all hits the fan continue to live the. This as she was only one of the other manager can help.Well, today is that nobody has the! The cheques to deposit, but dont know where to put them now had... No answer you need to open an estate account. the probate process my... Can close it if you stepped down properly, who became the executor is the only asset the. Divide them only entitled to Ontario tax credits and GST ; d suggest sitting in with your banking officer having! 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Dime it with Service fees until there is no property involved all all bank accounts myself! As i have been calling the bank realizes that this is the case, exactly. To cibc and they had no mechanism to inform clients go through Letters of Administration just for one (... Where Registered accounts are subject to different reporting requirements than personal or business.. One of the other hand, if you do n't get the funds that way, bump the issue the... And the Public Curator there has handled all the paperwork take care of his arrangements and the Curator. Said who the beneficiaries of the best Youth accounts in which the other party is still alive, exactly. Cibc had no will, no spouse and i am sole beneficiary my! When we are not the law any longer, when we are not applying for probate if. Are offered through National bank Trust is a subsidiary of National bank.... No will years of global experience in account Management for Corporate Real estate Leader with 30! 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Not have listed anyone but her estate as the executor of my fathers estate since gone to cibc they...
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