Q: Can executor move an estate's millions of $ into CDs rather than having them sit in super-low-interest money mkt accts?
This is a Connecticut Probate question. The deceased was not very good at finances, and did not put their money into good financial instruments for the family. So there are a couple million dollars sitting locked in various sub-0.5% interest-bearing money-market funds. Once the Court appoints a family member as Executor, can said Executor move these funds, with full oversight from and coordination with the Court, to, SAY, FOR EXAMPLE, high-interest-bearing CDs at banks, also so they'd then be insured by FDIC? It seems the financially responsible thing to do for the family, and would increase the estate by over $100K by the time the Court allows all funds in the estate to be released to designated recipients.
Note to attorneys: No need to focus on CDs or other instruments, not the point AT ALL. Point is: CAN IT BE DONE by an executor in the first place? Sigh
A: Investing the funds in CD's may be a good idea, but you have to keep in mind that the estate may need some liquidity to pay ongoing or other expenses. Also, you should consider rolling maturity dates, say some 3 month CD's, some 6 month CD's and some 9 month CD's. This way you will be able to respond to cash needs without incurring a penalty for early withdrawal. You should get permission/advice from the court to protect yourself.
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