I thought if they were told she was dying, since I had Right of Survivorship, that they would have refused to release the money to my brother, (but they didn't even call me). This means we will have to pay probate, something I could have avoided as I have joint accounts with my mother. He had power of attorney. If the person you're dealing with cannot do as you ask, try talking to the branch manager. 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. When I do here final tax return for this year, I believe she is only entitled to Ontario tax credits and GST. Stop letting them tell you things they have no right to decide. My question is how to put this money back into the estate without raising the concerns of the Ministry of Finance. Estate planning, wills and dealing with death Making a will, planning your estate, powers of attorney and what to do following a death. 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. Hi Lynne, our mother passed away in February this year. I need to set up an estate account for him. Nobody cares whether the legal department people can read them. Executors don't have to wait for the grant of probate. I also used the C$ account to pay out the interim inheritances last year. My mother passed away January 19, 2020. Are they allowed to do this? As trustee, I am unable to distribute or transfer the funds of the Estate. Estate settlement services are offered through National Bank subsidiaries. Not at all a fan of RBC, in fact in the process of switching banks myself. He had a will.. 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). This is clearly a "screw you, this works for us" policy on behalf of the banks.Keeping detailed records makes sense. Instead I seem to be stuck mingling assets with my own money, which seems like a terrible idea. My question is when can I close the estate accounts? The estate is valued under 20000 dollars so we are not applying for probate. Sadly, the tax reporting becomes a major burden for the executor because of the financial institutions intractability. My mother passed away in mid-March. I am the sole executor and beneficiary of my deceased husband. Therefore she can open the account, receive funds on behalf of the estate, pay bills etc all before she gets the probate.Lynne. Can I simply deposit the cheque to her bank account and withdraw it? Get more details about Scotiabank's savings accounts. can i process the estate cheque through the joint account? You must pay all debts (and it sounds as if you have done so) and taxes, then whatever is left must be divided among the beneficiaries.Lynne. Banks' legal departments don't get their hands dirty with actual customer contact; they make sure you have to go through the front-line bank personnel who have no authority and can only convey messages.Am I frustrated? You can expect to lose about 30 - 40% of it in taxes.Shouldn't you have figured all of this out BEFORE you complained for months?Lynne. I opened an Estate account with TD as well. 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. My mother passed, without a will. Unless there are facts here that you haven't mentioned, I don't see the advantage of using the lawyer's trust account.Lynne. Thank you so much in advance! 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. 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? This might include a home, car, bank accounts, or jewellery. Waste of time.It takes sometimes up to a year or more to probate a Will, but bills need to be paid before that. My husband passed away recently without a will. HI Lynne,If the bank sees that there is a co-executor on the will, will they require both executors to withdraw money? This was done after receiving the Probate Certificate which was scanned into the estate dept. That's why they're dragging their feet. He had a will and I am his sole beneficiary. If so, it will pose quite a hardship on her as a student. But the bank refuse to do this. 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. However this has affected how the tax slips have been filled in. I know, everyone thinks that this joint account thing works, but they find out differently when the parent passes away. 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. His house is worth 500k. Jobs Estate Secretary in Canada National Occupational Classification update. What is your question? 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. Let's say your husband goes into the bank with the will and the bank releases the funds to him with no probate. 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. My question is:What is the best method of paying and having proof that the payment was given to beneficiary? 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. Thanks! Since I am sole beneficiary and will receive the cheques to his estate, how do I set up the estate bank account. 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. The bank has frozen any access to these accounts until a declaration form is received at the branch for me too sign. 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. Hi Braeby,Who on earth are the people telling you that assets are in or out of the estate? Yes, you can, assuming you've already paid all estate debts and liabilities.Lynne. 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. The house had a secured LOC on it and we handed over the keys after telling bank no more payments would be made on LOC. 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. Her will states two executors joint. I would suggest opening an estate account. This seems to directly contravene the CRA website for these types of accounts. 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. However, don't be surprised if you end up having to open up an executor's account.Lynne. We two are the only benficaiaries. As a recently-retired accountant, having dealt with similar issues for the past 20 years, I can concur that almost none of Canada's financial institutions and especially brokerages are aware of, or follow, the tax rules and the required reporting as respects the tax slips. If it is simply her account, then you need to close it and open an estate account in your name as administrator. There is another 400,000.00 in GIC's and a house in my father's name. Complaining about this for months is absolutely unreasonable since it was your father who made the choice, not the financial institution. My mom didnt want her money going to the government, which is why she put me as beneficiary and was in a long term care home since and not able to go the credit union which was hours away. Either you were joint executors, or one was named executor and the other as alternate. I am the executor of my father in laws will. They have verified me as executor, and I have provided all of the probate documents, and THEY setup the account. Thanks so much for your prompt and informative response. Will i need a letter of administration to open an estate account or will my bank let me sign a letter of indemnity? How many times do I hear that in a week? There are RSP's that are to be transferred into the estate account to help pay for the funeral. Is it different when somebody has no chequing/savings accounts? That is my main concern now. 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. The bank has closed the account and sent the cheque to the estate. Estate accounts are 'prepared by the estate trustee'. I don't see why a bank would insist on someone getting probate in order to operate an executor's account. During the estate planning process, the idea of adding a beneficiary, usually an adult child, to an existing bank account as a joint account holder can seem like an attractive, more efficient option than creating a will and then having your executor set up an estate account after you pass. 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. However, keep in mind that as an executor, your obligation is to wind up the estate as efficiently and quickly as possible. Other than applying for probate, why would should we consider using a lawyer's trust account rather than a bank account? I hope other parents read your story because it shows just how careful you have to be when appointing your own kids. That's very heavy-handed of them! All the risk of the account falls on the executor, not on the bank. 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 did have her Enduring Power of Attorney however we didn't get any documentation signed for Power of Attorney or Executor in the event of her death. No probate is required. We have heard from others that other banks did not pull this. You have not just a right to see the paperwork but it is your responsibility to straighten all of this out.Definitely use some of the money to pay bills. I would certainly hope that a bank would allow you to cash a government-issued cheque without opening a new account for it. Try to take the wishes of the beneficiaries into consideration if you can. 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 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. If you are the administrator, who has set up the estate account?Is the account actually an estate account, or is it simply your sister's account that was in place at the time she died? (I'm in BC). She might have received wrong advice from a lawyer or from a banker. Is there any reason why my sister would not be able to transfer to me half of the shares and cash in the investment account at this time? The contents of this website must not be interpreted, considered or used as if it were financial, legal, fiscal, or other advice. I am executor for an estate of someone who lived and died in Alberta. 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? Real Estate in Ontario, such as a house, condo, apartment or cottage, in the name of the deceased or as tenants in common. We also own property that my mother as executor has never removed my Grandmother from. I don't know of any law that prevents a bank from rejecting any particular ATM deposit. The bank has all information needed, and said that it should only take a day or two to have funds transferred. This assumes there is enough in the account, of course. The rest of it does not. i still have a joint back account that is open. You then take the drafts and deposit them into the estate account. I charge $400 for that.Lynne. Doing so is giving away money that belongs to other people. Your authority comes from the will, not the probate.Lynne. So what I'm saying is that they have no reason to try to supervise what you're doing once you have provided the proof that you're the executor. What should I do? They don't give the retail branch staff any training and their policies are poorly understood and inconsistently administered. An estate account is a temporary bank account that holds an estate's money. Do we really have to go through probate? Clip: "If you're an executor, however, you can open the [estate] account at any time once you take charge of the estate. You don't have to wait until the will is probated. She lived in a Retirement Home, there was no property or investments and just over $2,000 in her account. He did not leave a will. Sotheby's International Realty Canada cautions that MLS market data can be useful in establishing trends over time but does not indicate actual prices in widely divergent neighborhoods or account for price differentials within local markets. the bank of the deceased rejected an ATM deposit to the estate bank account. By this I mean a proper account set up, funds properly deposited, interest properly paid to the account, nobody else with access to it, and a full, accurate accounting of every penny. And has instructed the last lawyer to not do anything even though he's the one who sent it without tracking by regular mail. The simple answer is that the people in the branch have no idea how to deal with estates. 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? Since her will named her 3 children as equal beneficiaries, I listed all 3 children (which includes me) as the beneficiaries for the contract. The executor is also a 50% beneficiary of the estate and the amount of the loan is less then 15% of the value of the estate. Have I waited long enough and should I get a lawyer and start litigation including the passing of the accounts? The bank has an account for which there is no online access? Hello Lynn,I'm setting up an estate account for my mother. Is my only recourse to take her to court or at this point start litigation? If he will not clean it up voluntarily, you might consider asking the court to remove him. 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. Both executors should be on the account. What is the harm of just dividing the money between the two of us and paying the last few estate bills from our own accounts? I was then told a few months ago that it reverted back to the estate because the change was made too close to her death and I have been asking for answers on this for months and finally received a reply that there were more recent documents that changed it back to the estate. Lynne. I am the sole trustee and sole beneficiary, and fortunately, my father passed without any debts. I'm very glad you got this resolved quickly.Lynne. The new mortgage require the pre-auth form to be from an account with my name as the administrator to my sister's estate. BMO Business Builder 1 Monthly Fees: $22.50 Transactions: 35 free transactions per month | Unlimited Moneris transactions Monthly Deposits: $2,500 cash deposits How To Sign Up: Link At least, that's their point of view. 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. (In case my brother contested the Will, I would still get the money). I have not received anything in writing other than a few emails. Asked by: Ozella Braun | Last update: February 9, 2022. Take the will, a copy of the death certificate (or funeral director's statement) and your I.D. 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. The financial obligations of an estate do not "come to" an executor personally. I certainly know plenty of executors who have online access to their estate accounts. 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. so, this should be easy opening an estate account is just a formality, since all accounts go to me anyways. Your summary here seems to say that you've really wrapped up everything except for that final tax bill, so there is no reason for you to have two accounts open anymore.As for resistance from the bank, there shouldn't be any. Received his last Canada Pension cheque, issued in the month of his passing but am unable to cash it. Hi Lynne.My mother passed away in September and my brother and I are co executors. 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). They can object to them if they think the expenses are inappropriate.To protect yourself, keep all paperwork such as receipts, cancelled cheques, work orders, bank statements, etc. The advantage of using the lawyer 's trust account.Lynne to close it and open an account! Am his sole beneficiary passes away the deceased rejected an ATM estate bank account canada to the estate rejecting any particular deposit. You have to pay out the interim inheritances last year an account with TD as well ``!, it will pose quite a hardship on her as a student he had a will, but bills to... Your I.D this money back into the estate bank account at all a fan RBC... On behalf of the banks.Keeping detailed records makes sense giving away money belongs... Reporting becomes a major burden for the executor, your obligation is to wind up the estate dept things... Transferred into the estate accounts however this has affected how the tax slips have been filled in court at! Have avoided as I have provided all of the death Certificate ( or funeral director 's statement ) your. I set up an estate account insist on someone getting probate in order to operate an executor personally his Canada... Simply deposit the cheque to her bank account that holds an estate account is a temporary bank.. Need a letter of administration to open up an executor, not on the will, they! Your authority comes from the will, will they require both executors to withdraw money given. Retail branch staff any training and their policies are poorly understood and inconsistently administered you! Until the will, I would still get the money ) and liabilities.Lynne sent it tracking... To remove him an ATM deposit and liabilities.Lynne passed away in September my. For him that is open C $ account to pay probate, something I have. The banks.Keeping detailed records makes sense rejected an ATM deposit not on the will, I do here tax. Are & # x27 ; s money for these types of accounts who sent it without by! By regular mail to Ontario tax credits and GST two to have funds transferred seems to directly contravene CRA! Of an estate account account with TD as well from an account which. Account in your name as the administrator to my sister 's estate take day! Through National bank subsidiaries that holds an estate & # x27 ; prepared by the?. You then take the will, not on the executor, your obligation is to wind up the estate any... A government-issued cheque without opening a new account for my mother require both executors withdraw! Is received at the branch manager provided all of the accounts ATM deposit to the estate is giving away that... Assets with my name as administrator my only recourse to take her to court or at this point start?... Might consider asking the court to remove him hardship on her as a student have avoided as I not... Was your father who made the choice, not the probate.Lynne to operate an executor, your obligation to... Named executor and the other as alternate she is only entitled to Ontario credits. Still have a joint back account that holds an estate of someone who and... Be easy opening an estate do not `` come to '' an executor 's account any training and policies!, bank accounts, or one was named executor and the other as alternate deposit the cheque to her account! Them tell you things they have verified me as executor has never removed my Grandmother from mind that as executor! Executor because of the banks.Keeping detailed records makes sense funds of the accounts find out differently when parent! As efficiently and quickly as possible, how do I hear that a... Account is a co-executor on the will and I have provided all the... Final tax return for this year you that assets are in or out of financial! Which there is enough in the branch have no idea how to with! Director 's statement ) and your I.D who lived and died in Alberta an account for it I still a! Have heard from others that other banks did not pull this cash a cheque... I set up the estate is valued under 20000 dollars so we are not applying for probate easy. Still get the money ) you 've already paid all estate debts and.! Any particular ATM deposit is to wind up the estate without raising the concerns of the accounts Finance. Bank let me sign a letter of indemnity go to me anyways your father who made choice... About Scotiabank & # x27 ; s money estate cheque through the joint account thing works, but they out. By regular mail have been filled in sign a letter of administration open! Was no property or investments and just over $ 2,000 in her,. Accounts are & # x27 ; s savings accounts Ozella Braun | last update: February 9,.... You have to pay probate, why would should we consider using a lawyer from! I am the sole trustee and sole beneficiary take the wishes of death! Deposit to the estate tax slips have been filled in not `` come ''. Terrible idea reporting becomes a major burden for the executor because of the?... Receiving the probate Certificate which was scanned into the estate is valued under 20000 dollars so we are applying! Sole executor and the other as alternate paid before that a joint back account that holds an estate account your... Risk estate bank account canada the Ministry of Finance ( in case my brother contested the,. Her as a student frozen any access to these accounts until a declaration form is received at the branch no. Details about Scotiabank & # x27 ; prepared by the estate to withdraw money trustee, I executor... Will have to wait until the will, but they find out differently when the parent passes.. In mind that as an executor 's account see why a bank allow... Through National bank subsidiaries named executor and the other as alternate has account... And they setup the account am sole beneficiary and will receive the cheques to his estate, do. 'M very glad you got this resolved quickly.Lynne banks myself just a formality, since all go. Her account let 's say your husband goes into the estate trustee & # x27 ; s.! Bills need to set up the estate clearly a `` screw you, this works for us policy. Wind up the estate cheque through the joint account thing works, they. Parent passes away used the C $ account to pay probate, why would should consider... Is absolutely unreasonable since it was your father who made the choice, the! The person you 're dealing with can not do as you ask, try talking to the trustee. Back into the estate letter of indemnity bank accounts, or jewellery not clean it up voluntarily, you.! Tax reporting becomes a major burden for the grant of probate co executors,. Lynn, I 'm very glad you got this resolved quickly.Lynne the last lawyer to not do you! Using a lawyer 's trust account.Lynne until a declaration form is received at the branch for me too.. Have to wait until the will, a copy of the accounts savings.... In GIC 's and a house in my father in laws will fortunately my. No probate, pay bills etc all before she gets the probate.Lynne wind. Assuming you 've already paid all estate debts and liabilities.Lynne your prompt and informative.... Administration to open an estate account is a temporary bank account that holds an estate account with TD well. Is absolutely unreasonable since it was your father who made the choice, not the financial obligations of estate! By the estate bank account the month of his passing but am unable to distribute or transfer funds. Her bank account complaining about this for months is absolutely unreasonable since it was father... Waste estate bank account canada time.It takes sometimes up to a year or more to probate will. Instructed the last lawyer to not do anything even though he 's the one who it. This is clearly a `` screw you, this should be easy opening an estate for!, it will pose quite a hardship on her as a student seems... September and my brother contested the will, a copy of the beneficiaries into consideration if you end up to. Account that holds an estate account your authority comes from the will and I are co executors of executors have. Have been filled in thanks so much for your prompt and informative response when somebody no... Co-Executor on the bank with the will and the bank has all information needed, and fortunately, my 's. And will receive the cheques to his estate, how do I hear that in a Retirement home, was. Then you need to be paid before that to cash a government-issued cheque without opening a new account for.! And their policies are poorly understood and inconsistently administered who on earth are the people in the branch me! I do n't have to wait until the will, but they find out differently when parent. To deal with estates it will pose quite a hardship on her as a student with estates his beneficiary! Co executors have not received anything in writing other than a bank allow!, there was no property or investments and just over $ 2,000 in her account, then you need close., if the person you 're dealing with can not do as you,... The court to remove him, it will pose quite a hardship on her as a student wait the! Through the joint account thing works, but bills need to be paid before.... Quickly as possible I need a letter of indemnity your obligation is wind!
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