Disclaimer
This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney regarding your specific situation.
Detailed Answer
In Idaho, a personal representative must safeguard estate assets and keep them separate from personal funds. Idaho Code § 15-3-705 (Collection and Custody of Estate Property) requires the representative to collect and hold estate property. Opening a dedicated estate account helps you meet this duty.
Idaho Code § 15-3-708 (Deposit or Investment of Liquid Assets) directs that you must deposit cash and liquid assets in insured accounts or invest them in authorized securities. A separate estate account ensures clear tracking of deposits, disbursements, and earnings.
Idaho Code § 15-1-110 (Deposit of Funds in a Fiduciary Capacity) also requires fiduciaries to keep funds distinct and to account for them accurately. Establishing an estate account at a bank or credit union prevents commingling and supports transparent accounting to beneficiaries and the court.
Here’s how to open an estate account:
- Obtain an Employer Identification Number (EIN) from the IRS.
- Present the letters testamentary or letters of administration to your bank.
- Name the account in the format “Estate of [Decedent Name], Personal Representative, Case No. [Court Case Number].”
- Deposit all estate income—such as bank accounts, dividends, and sale proceeds—into the estate account.
- Use the account exclusively for estate expenses, taxes, and distributions.
Keeping detailed records and bank statements simplifies the required inventory and accounting you file with the probate court. It also reduces disputes with beneficiaries and protects you from personal liability.
Helpful Hints
- File the estate’s final income tax return and any required estate tax returns on time.
- Maintain a ledger or spreadsheet of every deposit and withdrawal.
- Obtain court approval before making significant investments or extraordinary disbursements.
- Review beneficiary designations on life insurance and retirement plans—these may pass outside probate.
- Seek guidance from a probate attorney if the estate holds real property, business interests, or contested claims.