What is an ‘Estate of’ account?
An ‘Estate of’ account is a bank account opened and operated by the Executor(s) or other Legal Representative(s) of the Estate. Estate of accounts generally operate as a normal transactional account and as such are generally used to manage the affairs of the deceased after their death. ‘Estate of’ accounts allow for Estate funds to be deposited, and required payments made.
The Executor(s) or other Legal Representative(s) can then proceed to distribute any remaining funds held in the ‘Estate of’ account to the beneficiaries in accordance with the Will or according to the rules of intestacy as prescribed by each State and Territory.
While there are no requirements about how long an ‘Estate of’ account is kept open, how the account is managed and how long it remains open can have tax implications for the estate and for heirs and beneficiaries of the deceased. The Executor(s) or other Legal Representative(s) of the deceased should obtain tax or financial advice to ensure these implications are understood.