Disclaimer: This article provides general information and does not constitute legal advice.
Detailed Answer
Under Maine law, a personal representative must safeguard estate assets and avoid commingling estate funds with personal funds. Opening a separate estate bank account is standard practice. It ensures transparency, simplifies accounting, and reduces the risk of disputes.
Maine’s Uniform Probate Code outlines fiduciary duties. 18-B M.R.S. §3-703(4) requires a personal representative to “maintain a record for the estate of all property received and all disbursements made.” While the statute does not explicitly mandate a separate bank account, maintaining distinct records aligns with judicial guidelines. Moreover, 18-B M.R.S. §3-709 prohibits commingling: “A fiduciary shall not commingle the fiduciary’s money with estate funds.”
Establishing an estate account early in the probate process helps you:
- Track estate income (rental proceeds, dividends, sale proceeds).
- Pay valid debts and expenses (funeral costs, taxes).
- Provide clear records for heirs, beneficiaries, and courts.
- Prevent personal liability risks tied to commingling funds.
To open the account, present the financial institution with the decedent’s death certificate, letters testamentary or letters of administration, and any bank-required forms. Label the account as “Estate of Jane Doe, Personal Representative John Smith.”
Helpful Hints
- Obtain certified copies of your letters to satisfy bank requirements.
- Keep detailed receipts for all estate-related transactions.
- Reconcile the estate account monthly to detect and correct errors early.
- Review Maine Probate Court rules and fee schedules at the Maine Judicial Branch website.
- Seek guidance from a qualified probate attorney if the estate involves complex assets or disputes.