Does an executor appointed in a Will always have to get a Certificate of Appointment when dealing with a bank?

The Certificate of Appointment is issued by the court to the executor as a result of a Court application. A tax based on the estate value is paid when the court application is filed. The law office will charge for dealing with the court application. This all translates into increased estate administration costs, which means less money for beneficiaries. the bank will require the executor to obtain a Certificate of Appointment to establish an estate account if the executor will want to withdraw funds from the estate account. Frankly, who deposits funds and does not want to withdraw the funds at some point. If the deceased had an account at the bank and has had a positive history with the bank, it is possible the bank will agree to waive the requirement for the Certificate of Appointment, However, this will only apply up to a certain amount of money. If estate funds to be deposited/withdrawn from the estate account exceed that amount the Certificate of Appointment will be required. This is a concern to executors when a Certificate of Appointment is not required for any other estate administration reason. When making your Will, be sure to ask your bank if a Certificate of Appointment will be required by your executor. The answer will play a role in your estate planning decisions. Whether it is a big role or a little role is up to you. But, don’t rely totally on the bank’s response either. The bank’s rules/policies in force when you pass away will guide the requirements. There is no guarantee the rules/policies will be the same as when you asked the question.

June 10, 2019