So why do you need an estate account?
Hey guys, this is Brad from probateresource.com. We’re a real estate solutions company. We specialize in the world of probate and inheritance properties. We buy houses for cash or we have a fantastic network of handpicked real estate agents we work with across the country that are specialists in the probate inheritance world.
I’m here with Mike. Mike is an attorney at one of the firms that I close a lot of deals with here in Atlanta. And Mike, why does an estate need to set up an estate account for the bank? Why do they need to do that? Mike:
Sure. So the two most common types of probate would be if someone dies with a will, which is called dying test state, or dying without a will when they pass away, in test state. So in those two circumstances, someone is appointed. So if you have a will, an individual may appoint an executor to a will, and then without a will, a court may appoint what’s called an administrator of the estate. Those individuals, any money that’s received, whether it be from a closing or anywhere else, that is not their personal money. They’re just acting as a representative for the estate so they have essentially a fiduciary duty to the estate and any funds received.
So therefore, you open the estate account. In a lot of ways it’s to protect the executor, to protect the administrator, but also it’s a way for the court to ensure that any monies, any property or what have you that is being handled on behalf of the estate is separated from the executor or the administrator. So it’s to create a certain degree of ethical fairness and to make sure that waters aren’t getting muddied, so to speak. So as opposed to an executor putting the money in their own personal bank account, they have that separate bank account, the money goes in there, and then any bills that need to get paid, any debts that need to be taken care of, it’s all drawn out of the estate account. Brad Woodall:
Great explanation. Yeah, more times than not, obviously I’ve been doing these types of deals for a number of years and one of the things we always let people know ahead of time is, have you set up an estate account yet? Because if not, when you get to the closing table, this money has to be wired or a check has to be made out to the estate. It can’t be made out to you individually.
Even if there’s only one heir to the estate, maybe there’s only one sole heir, it still has to go to the estate account before it can be dispersed out to the heirs of the estate. And in some cases, obviously there might be creditors to an estate and that money has to go to the creditors before the heirs can even get any money from it.
Setting up an estate account is actually really easy. I have another video on how to do it. You just need to go to irs.gov and obtain an EIN. I know you guys help people do it all the time. Super simple. Pretty much any bank out there can set up an estate account for you. You just need that EIN, and you just need to have your probate documents from the probate court that just says like, “Hey, I’m John Smith, I’m the representative of the estate. I can open up the account for the estate.” If you have those two things, pretty much any bank can open an estate account for you.
I appreciate you guys checking out this video. If you have a property that you need to sell, we do buy properties for cash. We can make an easy, fast cash offer. Or if you want to go the traditional route, you feel like you want to maximize every last dollar out of that property, we do have a handpicked network of real estate agents that we work with all across the country that can help you sell your estate property. They specialize in the probate and inheritance world so they know what they’re doing.
If you want to work with our company, visit probateresource.com. You can go to the website. There is a form there on the website you can fill out, or you can pick up the phone and just call the number there on the website and member of our team will be happy to discuss your situation and figure out if we’re the right fit. So thanks again for checking out this video. I’m Brad from probateresource.com. Have a nice day. Bye-bye.
Why do you need an estate account?
This is Brad from probateresource.com. We’re a real estate solutions company. We specialize in the world of probate and inheritance properties. We buy houses for cash or we have a fantastic network of handpicked real estate agents we work with across the country that are specialists in the probate inheritance world.
I’m here with Mike. Mike is an attorney from one of the firms I work with in Atlanta.
“Mike, why does an estate need to set up an estate account for the bank? Why do they need to do that?”
Mike:
“Sure. So the two most common types of probate would be if someone dies with a will, which is called DYING TESTATE,
or dying without a will when they pass away, INSTESTATE.
So in those two circumstances, someone is appointed. When someone passes away, if they have a will, they may appoint an executor to manage the distribution of their assets. However, if there is no will, the court may appoint an administrator to handle the estate.
These individuals are not entitled to any of the money received from the estate, whether it comes from a closing or elsewhere. They are simply acting as representatives of the estate and therefore have a fiduciary duty to act in the best interest of the estate and manage any funds received accordingly.
When handling an estate, it’s important to open an estate account. This is done to protect both the executor or administrator, as well as the estate itself. By having a separate account, the court can ensure that any funds or property being managed on behalf of the estate is kept separate from the executor or administrator’s personal finances. This helps to ensure fairness and prevent any confusion or conflicts of interest. Instead of depositing funds into their own personal account, the executor or administrator can deposit them into the estate account. From there, any bills or debts can be paid directly from the estate account.”
Brad:
“It’s important to set up an estate account before closing a deal, especially if you’re dealing with inherited assets.
Even if you’re the only heir, the money must go to the estate account before being distributed among the heirs. In some cases, there might be creditors to an estate, and the money has to go to them before the heirs can receive their share of the inheritance. Therefore, it’s always better to be prepared and set up an estate account ahead of time to avoid any complications.”
Setting Up An Estate Account
“Setting up an estate account is a fairly simple process. I can assist you with a video tutorial on how to go about it.
Firstly, you need to obtain an EIN from the official website of IRS, which is quite easy to do. I understand that you may require some guidance in this regard, and I’m happy to help you. Once you have the EIN, you can approach any bank to set up the estate account.
You will also need to present the probate documents from the probate court, which establish you as the representative of the estate and authorize you to set up the account.
With these two things in hand, any bank will be able to open an estate account for you without any hassle.
I appreciate you guys checking out this video. If you have a property that you need to sell, we do buy properties for cash. We can make an EASY, FAST CASH OFFER.
Or if you want to go the traditional route, you feel like you want to maximize every last dollar out of that property, we do have a handpicked network of real estate agents that we work with all across the country that can help you sell your estate property. They specialize in the probate and inheritance world so they know what they’re doing.
If you want to work with our company, visit probateresource.com. There is a form there on the website you can fill out, or you can pick up the phone and just call the number there on the website and member of our team will be happy to discuss your situation and figure out if we’re the right fit. So thanks again for checking out this video. I’m Brad from probateresource.com.