Executor needs to keep direct debits going?

[PersephoneParlormaid]

I’m my uncles’s executor. He’s left a house that needs electric for the house alarm, and the house insurance require it to be working. The bank have closed his account so how do I keep the direct debit going while probate goes through?

Just contact the electric company and explain the situation, they will allow money owed to build up until you can access funds to pay them.

You'll probably need to get multiple copies of your uncles death certificate to deal with utilities, etc, as they will usually want to see a copy (usually has to be an original) to enable you to discuss their client as his executor.

Sorry for your loss. 💐

To add, I'm not a legal expert but my dad died a few years ago and we had to go through this too

You can’t. Not from that account at least.

best approach is to contact the electricity company, explain, and tell them you’ll arrange payment as soon as you have the funds to do so. They are usually fine with this.

you can set up an executors account and pay from there, depending if you have any funds, or pay yourself and claim from the estate later.

just keep clear and accurate records/accounts.

I asked the bank about an executors account, and they said they don’t have one, yet I’m sure I’ve heard of it.
I don’t see why anyone should be paying from their own account for this.

When my DM died for reasons I wasn’t able to sell her house immediately. I contacted all the utility companies and explained that the water and electrics needed to stay on for the reasons you’ve described. I also explained that as the only money she had was tied up in the house, any bills would be paid once it sold. I did have to pay for the insurance up front, it was about £200 for a year.
The energy supplier explained that the debt would be handed over to a debt collection agency and they would monitor it. The agency contacted me every 3 months or so to see where we were up to. They were always very polite, no pressure. The house was sold just over 2 years after she died and I was then able to settle all outstanding debts with the proceeds and be reimbursed for the insurance.
It’s a very common situation, please don’t worry about it. Also, I had to open an executor account as the money from the house sale had to be paid into it. If there is money in your Uncle’s account, his bank will likely pay that into your account once they see all the relevant paperwork - just open a separate account with your bank so that you don’t get it muddled up with your own money.

I suspect they do, but the person you spoke to gave bad advice. If they really don't, try another bank. There are plenty that offer executors accounts.

this happened to us recently . We rang all the utilities for final bills tv licence etc . The electric and gas, we paid on a
monthly basis and then claimed back from the estate . The insurance we got a money back as we changed it to unoccupied . Just be aware that part is the policy change was that we had someone check on the property on a weekly basis. They recorded their visits so if anything went wrong we had proof that it was being checked on. Also having the heating on a timer all year round. In the winter we increased the temp .

If you can’t pay the bills on a monthly basis they will just sent you a bill each month . When the property is sold
they will send you a bill for anything that’s not been paid .

if you have told the bank , they will freeze the bank account all
direct debits and standing orders will be cancelled

I did my late father in laws probate, yes direct debit gets cancelled but water, gas and electricity do stay connected and you contact them again once the estate is settled to arrange payment of whatever is owed. You also need to arrange house insurance as executor and pay for it yourself and claim back from the estate when you get probate, I just took over current insurance and they changed the name of account to Mrs ……., Executor to Mr …….

But it’s important to contact all the companies asap. We also cancelled Sky but that also worked until house was sold.

You absolutely do not need an executors bank account to perform the duties of an executor.

Some executors do arrange one, many don't. You should/ can just use a separate bank account for the purposes of collecting funds and paying disbursements as you work through management of the estate. Just keep it separate and don't intermingle funds with your own money.

But then you get the problem of rebates such as tax rebates or council tax refunds in the form of cheques addressed to executors of Fred smith which you can’t bank! Youve got to try to persuade banks etc to pay the deceased’s funds to your personal bank account which some refuse to do! Just easier to open an executor bank account unless the estate is very small and simple.

You don’t have to pay from your own account. The electricity company should hold the account.

you may be surprised, sometimes money just starts being dumped in your account. I got tax rebates, current account, and a few other bits just appear with no warning.

to open an executors account you need probate. Much of the time you may not need to, depending on how much is in the estate and how far you get before probate is granted.

i opened an executors account with my own bank. Makes things easier as much of the verification is already done.

Not many banks do executors accounts these days. Nat West are ones that do, but to start with it;s jsut an ordinary personal account that you can change to an executors one once you have probate.

The advice now is usually for the executor to set up a new personal account separate from their own for use in gathering money in and paying out. Some finaincial institutions will pay out quite large sums to executors without the need for probate and if they will then this money can be used to pay bills.

Otherwise as others have said if there is no easily accessible money the executor needs to get in touch with the utility companies and others owed money and explain that bills and debts can only be settled once money is available (usually after the sale of a property, which can't be done until probate is obtained).

Look to see if the organisation has a dedicated bereavement contact - many large companies do and they'll be sympathetic and familiar with the situation.

‘’Some finaincial institutions will pay out quite large sums to executors without the need for probate and if they will then this money can be used to pay bills.’’
Yes, the bank told me yesterday that if the balance was under £50,000 they would pay out without probate, I was shocked.
If I put his money into an account in my name I assume I’m liable to be taxed on it? So I do need to find an executors account.

I didn’t have an executors account and didn’t receive any cheques for an executor they were all in my name with my dad’s name (deceased) on them!!
Need probate for his savings and premium bonds as the PB’s threshold is quite low for needing it!

I didn’t get taxed on anything as it was under inheritance tax threshold!

The house instance was soooo expensive as it was sitting empty for a year while we decided what to do!

luckily Dad was in massive credit with gas and electricity so they just took payments out of that until it ran out and water just sent me a bill every 3months or so!

You'd only get taxed on any interest earned and most current accounts don't pay interest so there would be no tax to pay. Just keep a clear record of what goes in and out of the account and keep it all separate from your own financial affairs.

You won’t be taxed on it as it’s not income. And if you’re PAYE, it won’t even be visible to HMRC. You’re only taxed on income which is declared by your employer or yourself via self assessment. Neither of which apply in this situation.

Any interest over £2000 on a personal account will be taxed. I believe all interest on an estate is taxed.

it absolutely will be visible to HMRC.

Banks send HMRC details of interest!

Nope.

Just write to them, let them know the situation. You can pay when you have probate.

Yes, I‘be had a letter from HMRC asking me for the interest gained on accounts for the last financial year and this year so far

Technically, yes.

But it’s income of the estate. Not of OP’s

I was astonished how casual my late mum's banks were about sending her money to me. I just opened a second account and put it all in there. I kept clear records of what was spent.

Yes. But it could make things difficult if it’s included in o/p’s personal tax affairs, if it’s in a personal account.

for that reason it may be easier to keep separate. Particularly if the estate is larger, or may not be settled for a while.