Being in charge of an estate in Texas involves many duties. One of them will be to make sure that all of the deceased person’s debts are paid off. You will also be in charge of ensuring that all of the related probate costs are handled. Opening an estate bank account will be the best way to handle both of these issues at the same time.
Why do you need an estate account?
Probate costs can sometimes be very considerable. The exact extent of these costs will depend on the size of the estate. You will not be held responsible for paying these expenses. Indeed, you are legally entitled to use the deceased person’s assets to take care of all of the various payments. This is the main reason to open an estate account.
Making use of an estate bank account will give you the means to keep your personal finances completely separate from the estate. It establishes a clear record of how the funds in the estate are being used. This will be the best means of avoiding any disputes with beneficiaries, such as accusations of embezzlement or mishandling.
How can you open an estate account?
One of your first duties as an executor should be to set up an estate bank account. Your first move will be to procure a copy of the death certificate.
From there, you will need to file for probate and petition for recognition from the court. Once you have your official appointment of executor document, you can proceed to the first stage of probate.
The next step will be to get a tax ID number. You can do so by filling out IRS Form SS-4, Application for Employer Identification Number at the IRS website. They also have an EIN application that enables you to get your number immediately.
The last step of the process will be to open up your probate bank account. You can do so at a local bank or credit union. Many banks may offer you a special deal for this specific purpose.