Detailed Answer

When a personal representative handles estate funds, opening a dedicated estate bank account is critical. Keeping estate money separate from personal funds prevents commingling, simplifies accounting, and protects you from personal liability.

Why Open a Separate Estate Bank Account?

Prevents commingling: Maintains clear boundaries between personal and estate assets.
Ensures accurate records: Facilitates precise tracking of income, expenses, and distributions.
Meets fiduciary duty: New Jersey courts expect fiduciaries to segregate estate funds.

New Jersey Statutory Requirements

Under New Jersey law, a fiduciary must deposit estate funds promptly into a separate bank account. N.J.S.A. 3B:19-12 mandates that “all money in the hands of a fiduciary shall be deposited in one or more financial institutions” and that account titles include “fiduciary” or “trustee.” N.J.S.A. 3B:19-12.

Additionally, N.J.S.A. 3B:20-2 grants personal representatives the power to collect and manage assets, including opening accounts to preserve estate property. N.J.S.A. 3B:20-2.

How to Open an Estate Account in New Jersey

Obtain Letters Testamentary or Letters of Administration from the Surrogate’s Court.
Choose a bank or credit union familiar with fiduciary accounts.
Present certified court documents and your personal identification.
Title the account clearly—for example, “Estate of [Decedent Name], John Doe, Personal Representative.”
Maintain detailed records of all deposits, withdrawals, fees, and transfers.

Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.

Helpful Hints

Keep separate ledgers for each estate account transaction.
Retain all bank statements and canceled checks for court reports.
Notify beneficiaries of significant account activity to maintain transparency.
Reconcile the estate account monthly to spot errors early.
Verify any estate-related fees before authorizing disbursements.