Q: Do I need to open a separate bank account, with its own tax ID number, to deposit income owed to my mother’s estate?
My mother, a California resident, passed away recently and named me Executor in her Will. My brother, sister, and I all get 1/3rd per the Will. The value of the estate is less than $25,000. I started receiving several small-dollar checks in my mother’s name (not sure what to do with them), and need to direct my Mother’s bank on where to transfer her checking account balance of about $15,000.
It’s simplest if I could deposit this all in my existing checking account, and pay all the estate’s debts out my checking account (documenting everything along the way). And once the debts were paid off, I would distribute the excess (plus earned interest) in accordance with the terms of the Will. Is this permissible (using my own checking account to collect proceeds and pay bills) or do I need to set up a separate, bank account, with its own unique federal tax ID number, to collect all the assets and pay out the debts? If I need to set up another bank account, do I set it up in my name?
A: NO. Use a separate account for all of your mother's money, so you can account for it (every penny) this is money which you hold as a fiduciary.
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A: For such a small amount, yes, you can accomplish your goal using a small estate affidavit signed by all three of you. Do keep very careful records.
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