There is no law that prohibits an executor from asking the bank for the money. The executor's get their legal authority from being named in the will, not from probate. It is not illegal for the executor to ask the bank for the money, but there is no legal obligation on the bank to provide it prior to probate.
Before an executor can provide any funds to a beneficiary, they have to ensure that all the deceased's bills, taxes, and estate administration expenses are paid. The executor must notify any known creditors of the death so those creditors can make a claim against the estate.
The funds in a bank account are available for the executor to use to cover debts, taxes, and other estate costs. Once the estate is settled, the executor can liquidate the account and distribute the funds in accordance with the will.
Can I reimburse myself from an estate account? An executor can be reimbursed for expenses related to the effective handling of the estate and settling all of your loved ones affairs. As with funeral expenses, there is an expectation that these costs will stay within the bounds of what is reasonable.
As a fiduciary, the executor must manage the money in the estate account, but they cannot take it for themselves.
With an estate account, you can't simply withdraw money. You need to submit a claim to the court that explains what you want to withdraw and what you're using it for. That protects the beneficiaries since you can only use this money to pay approved expenses.
California has one of the most detailed schemes, which provides that the executor fee is four percent of the first $100,000 of the estate, three percent of the next $100,000, two percent of the next $800,000, one percent on the next $9 million, one-half of one percent on the next $15 million, and a “reasonable amount" ...
However, if one or more executors does not wish to act or cannot act (for instance, due to illness) then that executor can renounce their role by signing a Deed of Renunciation, removing themselves as an executor and the remaining executor(s) can apply for probate without them.
Money typically stays in an estate account for months to a year. How long money has to stay in an estate account is based on factors such as the complexity of the estate, whether an estate tax return is required, and the time needed to resolve any claims made by creditors.
Timeline for Settling Estates in California
The courts take steps to move the process along, and the executor of an estate generally has 12 months to complete the probate process and pay heirs or beneficiaries from the estate. This payout can only happen once all debts have been paid.
Executors are bound to the terms of the will, which means they are not permitted to change beneficiaries. The beneficiaries who were named by the decedent will remain beneficiaries so long as the portions of the will in which they appear are not invalidated through a successful will contest.
You should not spend any of the estate's money unless you have received permission from the court or have been advised to do so by an attorney. You may reimburse yourself for official court costs paid by you to the county clerk and for the premium on your bond.
The executor of a will can take everything only if they are the sole beneficiary of a decedent's estate and all of the decedent's debts have been paid.
If you do not have a Grant of Representation (England or Wales) or Confirmation (Scotland), the Executor Account can still be opened, however, you will only be able to pay out the final funeral bill and receive payments. You will not be able to make any other outgoing payments from the account).
If the money is intended for the executor's personal use, the answer is a very firm “no!” That would be a breach of the executor's fiduciary duty and should be grounds for the executor being removed by the court.
In the absence of probate, financial institutions often have stringent policies to prevent unauthorized access to funds. It's important to note that executors may still be able to access funds from the deceased's account for immediate and necessary expenses.
In some cases, an executor can resign from their role. For example, if a representative becomes overwhelmed with the duties required of them, they may seek resignation in court. To resign, an executor must draft a resignation letter, sign the document, and notify the estate's beneficiaries.
The bottom line is the executor does not have the right to give away items from the residue of the estate to people who are not beneficiaries. But if only one or two items of no special value are involved, and they're offered to all beneficiaries, then that's less likely to attract concern.
What Powers Does an Executor Have? The executor can access the bank accounts, any assets, and documents related to the estate. However, the executor is only supposed to carry out the wishes mentioned in the will. Otherwise, they are liable for abusing the powers or making mistakes.
The executor has authority from the county probate court to act in this role, but that doesn't necessarily mean that the executor has the final say on all decisions regarding the estate. In fact, they're instead tasked with simply following the guidelines set forth by the will and other estate planning documents.
While executors have discretion in some areas, your core decision-making is bounded by: The deceased's will. You must follow their distribution wishes rather than diverging based on your own judgments.
Simple estates might be settled within six months. Complex estates, those with a lot of assets or assets that are complex or hard to value can take several years to settle. If an estate tax return is required, the estate might not be closed until the IRS indicates its acceptance of the estate tax return.
Remove the executor. If the court finds that the executor hasn't been following the will, has been stealing from the estate or in any other way not performing their fiduciary duty, it can remove the executor and appoint a successor executor. File criminal charges.
If you've paid some of those costs or are planning to, you're probably wondering whether you can use the estate assets to reimburse yourself for funeral expenses or other out-of-pocket expenses. The answer is: absolutely, yes!