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    THESTEVEO's Avatar
    THESTEVEO Posts: 3, Reputation: 1
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    #1

    Mar 10, 2006, 10:18 AM
    Estate bank accounts
    I ‘m trying to help a love one. They need to open estate bank accounts for a late brother’s estate. They are the volunteer administrator of estate. The only thing in the brother’s estate was about $2200.00. They have withdrawn the money from his account. I was told that they need to open an estate account and pay out money 1st to cover his funeral expenses that I paid (that was well over the $2200.00). Then summit all documentation back to the court. The banks tell us that they need a tax ID number to open an account. Is there any way around this? We would like any help you have to offer. I want everything to be done legally. We live in New York State.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #2

    Mar 10, 2006, 10:50 AM
    Whoa! Was there a will that was probated? If not, and I wouldn't think there would be for an estate that small, there is no documentation needed as no court to offer it too. If the will was probated, then I believe the probate court would be the one to assign a number.

    I was executor for both my mother's and grandmother's estates. Both were small though larger than $2200. The will were never probated and I just paid out expenses from the funds. I kept receipts but never had to profer them to anyone.
    THESTEVEO's Avatar
    THESTEVEO Posts: 3, Reputation: 1
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    #3

    Mar 10, 2006, 12:30 PM
    There was no will no probate she had to apply to the courts to be the volunteer administrator of the estate. As that was the only way she could get at the money in the bank under her brother name. The court granted her the volunteer administrator and they told her she need to open an estate bank account, deposit the money in it. Then pay out the money to cover his funeral expenses and if any money was left (will not be) to pay off any other money that he owes. Then send back to the court all bank statements and proof of payments (original cashed bank checks as proof of payments from the estate bank account.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #4

    Mar 10, 2006, 12:55 PM
    Ok, so the bank account was solely in the brother's name? She should be able to use either the brother's SSN or her own as the Tax ID number. If she opens a non-interest bearing account then there should be no tax implication. A bank officer at her local bank should be able to help her with that.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #5

    Mar 10, 2006, 02:36 PM
    First while the court said she should, that is the way it is written that all the money and money from the sale of property goes into a special bank account.

    Ir really don't believe they meant that to happen when all the money was going to the funeral home. I see personally ( just personally) with taking the money, and merely paying the funeral home with it.

    If you have to have a tax number you can normally use a employer ID number, make it for so and so estate, We used our employer ID number to open all of our churches bank accounts.

    You can get those over the phone from the IRS.

    Since all of the money would be paid to one and the first debt, (funeral home) it really does not make sound sense to open an account ( pay the fees to open one) write one check ( leave enough money into the account for any fees) and then go back in and close the account next month.

    Of course since when does the law have tomake sense.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #6

    Mar 11, 2006, 05:42 AM
    To expand on my comment to Chuck's post. Normally, I would agree. But what is apparently the siituation here was that the deceased had an account solely in their name. A bank would then require some sort of court order to release those funds. It would appear that in giving an order to release the funds it was stipulated that the money be put into an accouint from which the debts would be paid.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #7

    Mar 11, 2006, 06:43 AM
    Yes I will agree with Scott, the estate law does state ( at least here and several states I know) that this money is to be put into a bank account.

    You could go back to the probate judge and ask him if he could merely order the money paid to the funeral home. Many judges have common sense and if the law allows them will use it. ( esp probate judges more so than criminal judges)
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #8

    Mar 11, 2006, 07:52 AM
    Here I agree with Chuck. If you can't get the bank account setup, go back to the court that issued the order and explain the circumstances. Hopefully the judge will use some common sense.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #9

    Mar 11, 2006, 11:37 AM
    Scott the world may be changed beyond correction today, we have agreed about 4 times today, here and on a few other questions.

    I will try hard to read some of your other answers somewhere so we can disagree about something again.
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    ScottGem Posts: 64,966, Reputation: 6056
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    #10

    Mar 11, 2006, 04:56 PM
    ROFL.

    What I am about is facts and logic. When I see something that appears logical and according to the facts as I know them, then I will agreee with it. If not I will disagree. I don't care who makes the statements. I don't try to personalize everything.
    THESTEVEO's Avatar
    THESTEVEO Posts: 3, Reputation: 1
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    #11

    Mar 15, 2006, 06:32 AM
    Thank Scott and Chuck for the help. Just to let you know. We were not able to open an estate bank account with out a tax identification number. Banks would not do it with a SS number. We were able to apply for a tax identification number for estate bank account online with the IRS (form SS-4).
    Thank again
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #12

    Mar 15, 2006, 07:07 AM
    Thanks for letting us know. Glad you got it done.

    For anyone reading this thread, I would suggest that all accounts be held jointly with someone you trust. This would have allowed for withdrawing the money without going through the courts.
    gjclausen's Avatar
    gjclausen Posts: 1, Reputation: 1
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    #13

    Jun 9, 2010, 03:11 PM
    I live in TX and am in the process of doing something pretty similar. My attorney advised to me to set up a bank account in the name of the estate and to not "co-mingle" my money with estate money. That way, if an heir to the estate arises or someone wants to contest how the estate was handled, then you have clear documentation of monies and how they were disbursed.
    Also, I was told to apply for a Tax ID number. My attorney gave me the paper work and it is an easy thing to do. It is in the estate name and I am the administrator/executor of the estate. Hope this helps!

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