If you’ve been notified that you are a beneficiary of an estate, you may be wondering what information you are entitled to. More specifically, you may be wondering “dDes an executor have to show bank statements?”
We’re going to take a look at this question in detail below, as well as a few other common questions that beneficiaries ask about executors. We will also be sharing information about banking for beneficiaries, including why it may be worth exploring establishing ties through a US bank from abroad to help facilitate any transfers from US-based estates.
Feel free to jump ahead to the areas most relevant to you by using the table of contents below.
Table of Contents
- Important Consideration
- Responsibilities of an Executor
- Does an Executor Have to Show Bank Statements?
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
Important Consideration
Depending on where you live, where the beneficiaries live, the jurisdiction where the bank accounts are held, and the specific process that will be used to transfer funds (e.g. ECC banking or wire transfers), it can often make sense to involve a lawyer to navigate the many variables that can come from the distribution of assets after someone has passed.
This is especially true when dealing with assets in multiple jurisdictions, complex probate procedures, or special accounts tied to the passing of an individual. So, if it makes sense for your situation, be sure to involve a qualified legal professional to help you understand your options.
Before diving in any further, if this is your first time visiting GlobalBanks, don’t forget to download your FREE US Banking Starter Guide. It’s designed to help non-residents with opening bank accounts at top financial institutions in the US.
Responsibilities of an Executor
First, let’s consider what the role of the executor is in a broad sense and then look at whether an executor has to show bank statements to requesting parties.
In short, an executor is appointed to manage the financial affairs of an estate after a person has died. This includes the payment of outstanding liabilities (such as debt), payment of any applicable taxes, and distribution of assets to beneficiaries.
As for disclosures, the specific requirements placed on an executor in terms of transparency ultimately depend on the state. If you are operating across multiple jurisdictions, this can be complex rather quickly.
That said, it’s important for both the executor and the beneficiaries to realize that the executor is not entitled to make decisions. Instead, it is their responsibility to manage the financial affairs in accordance with local laws and (if applicable) will, letter of wishes, or trust documents.
Does an Executor Have to Show Bank Statements?
As mentioned above, whether an executor has to show bank statements will ultimately depend on the state where the deceased was resident and where their estate is being executed.
For example, California, Texas, and New Jersey all have different requirements and treat requests from beneficiaries differently.
Likewise, the decision to disclose bank statements will also depend on the relationship between the executor and the beneficiaries. This is an important consideration because not disclosing bank statements to beneficiaries (when requested) will almost certainly create distrust, which can then lead to formal legal action against the executor.
Frequently Asked Questions
Below are two of the most common questions that we receive from people about bank accounts and executors. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
What Does an Executor Have to Disclose to a Beneficiary?
The information that an executor has to disclose to a beneficiary will vary from state to state and country to country. With this in mind, it’s important to consider where the estate is being executed and which laws apply. This will provide an accurate assessment of the legal responsibilities of the executor and the legal rights of a beneficiary.
What’s the Difference Between Lawyers and Executors?
The difference between lawyers and executors is that executors do not need to be lawyers. However, lawyers can certainly be executors. That said, a benefactor (the person appointing an executor) can choose to appoint anyone that they deem appropriate, as long as they are of legal age in the jurisdiction. In most cases, individuals with simple inheritance plans choose to appoint a family member while individuals with complex inheritance plans may choose to appoint a lawyer.
Ready to Open Accounts With Banks in the USA?
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In fact, GlobalBanks USA even helps non-resident US LLCs and foreign & offshore entities.
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