Regardless of whether you’re planning your estate or you’re the beneficiary of an estate, you might be wondering “can an executor withdraw money from an estate account?”
In short, the answer is “yes”. In fact, being able to withdraw money to execute transactions on behalf of an estate is a key part of the executor’s responsibilities. However, there are many nuances, restrictions, and important considerations.
In this article, we’ll discuss everything you need to know to understand what an executor can and cannot do.
Importantly, the information shared below will apply whether the money of an estate is held with one of the most exclusive private banks in the world, or in a checking account at a local bank.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Can an Executor Withdraw Money From an Estate Account?
- Should You Hire an Attorney to Manage Your Estate?
- Frequently Asked Questions
- Ready to Explore Your Options?
Can an Executor Withdraw Money From an Estate Account?
An executor can withdraw money from an estate account for the purpose of completing transactions related to the estate. That said, most banks will require an executor to provide supporting documentation for any withdrawals, including receipts, written explanations, or invoices.
It’s important to note that the executor is not personally entitled to any of the money held in an estate account beyond any agreed-upon compensation for their service. That is unless the executor is also a beneficiary of the estate.
An executor can transfer money from a decedent’s bank account to an estate account in the name of the executor, but they cannot withdraw cash from the account or transfer it into their own bank account. The estate’s assets do not belong to the executor. They belong to the estate.
Do You Want Our Free Non-Resident Banking Guide?
Sign up here to receive our Free Non-Resident Banking Starter Guide and weekly updates on the best account opening options available:
Should You Hire an Attorney to Manage Your Estate?
When deciding who should manage an estate, many individuals choose between professional support like an attorney and a family member. That said, there are often hesitations with both scenarios.
Family members may not have the experience, knowledge, or judgment required to navigate the complexities of an estate. Likewise, if there is any distrust in the family, naming a family member as executor can cause further rifts. Not surprisingly, this can raise questions like “can an executor withdraw money from an estate account?” Of course, these family challenges are more pressing when dealing with complex estates and large extended families.
That said, attorneys may leave the practice where they are employed, the firm may not have acceptable succession practices in place, or there may be concerns about billing.
In the end, it’s important that a benefactor considers all of the available options and decides which solution best matches their wishes.
Frequently Asked Questions
Below are three of the most common questions that we receive from people looking to understand whether an executor can withdraw money from an estate account. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
How Long Does an Executor Have to Settle an Estate?
In most cases, jurisdictions do not enforce a set period of time for an executor to settle an estate. Instead, the period of time that it can take an executor to settle an estate will vary depending on the jurisdiction, the complexity of the estate, the estate planning vehicles employed, required probate proceedings, and more.
Can Executor Deposit Checks Made Out to Deceased?
The executor of a deceased person’s estate is able to deposit checks into an estate account. That said, the executor of an estate is not able to cash checks personally. Likewise, they cannot endorse checks and deposit them into accounts that are not intended for the purpose of the estate.
Can a Beneficiary Withdraw Money?
The beneficiary of an estate cannot withdraw money from an estate account unless they are also an executor and are doing to support the activities of the estate. That said, as a beneficiary, any funds that may be for their benefit can be withdrawn or transferred to them when the bank has received appropriate documentation and notice for such transactions to be processed.
Ready to Explore Your Options?
If you would like assistance navigating your banking options at home or abroad, we can help.
You can access GlobalBanks IQ, our international banking intelligence platform, in just a few clicks. Unlock our bank database, individual bank profiles, account opening strategies and reports, banker scripts, and more.
But, if you want a 100% personalized account opening service that taps into our team’s expertise and provides direct banker introductions, you can get started with GlobalBanks Insider.
Of course, if you have any questions, please contact us directly.
