Estate Account
An Estate Account is a temporary bank account set up to manage the financial transactions of a deceased person's Estate during the Probate process.
After a person dies, all of their Assets and Debts become part of their estate, and several transactions will be necessary to pay Debtors and distribute assets to Heirs or Beneficiaries.
An estate account is typically opened by an Executor of the Estate, in the name of the estate of the deceased (ex: The Estate of John Doe).
It is used to deposit any money owed or earned, and disburse funds for any ongoing expenses or individual payments owed.
The account is separate from any personal accounts that the deceased may have had, and it is used exclusively for the management of the estate's finances.
The account is also subject to supervision by Probate Court and must be used in accordance with the court's orders, and the terms of the deceased person's Last Will and Testament, if one exists.
Once the estate has been fully Settled and all debts have been paid, any remaining funds in the Estate Account can be distributed to the heirs or beneficiaries.