Can the estate bank account be closed before the estate is closed?

In the big picture of things, it's always best to wait until the estate is closed out entirely. This may take longer than you may prefer, however in the end it's the cleanest way.

I was administrrix for my husband here in TX when he passed without a will. I was a number of years ago but I'm sure the rules are the same. Get an estate lawyer first. I had to open up a bank account and pay all bills owed out of the estate acct like plot, stone, services, etc. I also had to collect monies that was owed to him from several sources. Keep in mind that if any form has been signed to name someone else as a beneficiary, most won't honor the wife, they will give the money to the beneficiary. ALL people should check these policies to make sure the beneficiary is the correct one, as in the current wife or trustee. When a form is forgotten and a person leaves a job, such as a union job, their beneficiaries remain the same if that person doesn't come in and change the name. It took 5 years for the estate to close because I, as his wife, would file a tax return and IRS allowed me to claim him as a dependent for 2 years even though he had passed and he owed taxes. Everything must be kept separate from your personal accounts and once all taxes have been paid, all bills have been paid, you are free to divide the remainder with the children first, wife if she takes anything at all, which I didn't. There wasn't much and I wanted it all to go to the children so trust accounts were set up and adult children got cash, minor children has money put into trust accounts until they reached 18. Leaving a will detailing what you want done with the money, house, etc. is easier but if no will is prepared, the administratrix handles the account along with the lawyer.

Do not close the elder's bank accounts until the estate is finalized. There may be late bills coming in, which you will have to pay out of said bank account.

It is called partial distribution, it is done all the time. I honestly don't think your lawyer will say no or give you a hard time about this request. Good luck.

Hadnuff, I do understand why you are asking the question, and the fact that all the money is for your disabled brother complicates things. What I don't understand is why you are asking US. You have a good lawyer. Use him.

If her brother has a special needs trust, he probably has Social Security disability or SSI. The problem with th trust u can't spend the money on housing or food. This is what SSD and SSI are for. You can get help with Medicaid and food stamps. There r limits to the trust.

Yes you can. We did it with a family estate. It could take 6 months ir longer to get the final ok. I would put the majority in the trust with the understanding if anything comes up which is not covered by what you left in the estate checking account that a withdrawal be made from the trust.

People who proceed with things without their lawyers advice or knowledge may end up with negative consequences. I would see the advice of counsel, as any step you take can impact you and the case.

Had - ? Will you need to get repaid the $ you deposited into the SNT?
If not, then I'd just put in whatever to the snt pay for costs.
But if you need to be repaid for the $ - as it's really a loan by you - from the assets of the estate, it's going to be sticky. I'd suggest you get with your atty. to get a set modest monthly $ draw from the estate paid to the SNT. And it gets backdated to date probate was opened so you have a bit of a kitty of $$ to start off with. I'd keep the monthly amount as low as possible so if something comes up there are estate funds to pay in full for things.

My hubby was his dad's executor. He waited almost a year past dad's death to
close out" the account. Small things keep cropping up--you don't know what a person has committed to prior to their death and often bills will show up you had no idea were out there. We dropped almost $800 on a pair of dentures dad had gone to have made a week before he died...the dentist didn't know he'd passed and they just kept calling him.. Taxes, etc., can still be out there, waiting. Dad has his own little business and we had to shut that down piece by piece. I don't think the state was very interested in a small estate such as dad's, but you do not want the state involved, if you help it.

I have a good lawyer. The reason I asked is because of brother. He has a special needs trust. Only has $1500 in it. All money. from estate will go in trust. So can't pay much of brothers expenses that trust allows right now. I'll have to use my own money untill I can close the estate account.

If the estate has assets you kinda need to keep open an "estate of" bank account till it becomes a negative asset.....like the executor is using their own $ to keep the bank account alive.

another item to consider on dealing with estates is If there is a home or other property that has insurance - like home has a vacant dwelling policy - when it gets sold or transferred any overage paid on the policy to date of cancellation/sale or transfer will be repaid. And the check will be written to "estate of" which has to be deposited to an estate account. If your trying to close out probate you don't want this. Try to get the insurance to be billed quarterly (or even monthly if you can) to lessen assets.

Some probate courts allow for probate to remain open like till forever (TX does this) & executor may need to do an quarterly or annual report to PC if estate is over a certain amount.

My mother died in 2014. I still have $5000 in the estate account until May 2017. The IRS can go back three years on any tax mistakes. The Lawyer that helped me with my mother's estate made that recommendation. Executor's should not try and
probate an estate without the assistance of a lawyer.

My brother was the executor, and he waited until all the bills were paid (medical) before he started dividing the money and closing down accounts. It's just what you have to do.

You should consult your lawyer.
However, here's what I've learned as an estate Executor... you must remember that the deceased may owe taxes, or you may need to pay a tax preparer from the estate account to help you file, even if no money is owed. The estate may receive a bill from a service (like a credit card or newspaper subscription) that you were not aware was active. You may need to show current bank statements to the filing office in the deceased person's County (or wherever you filed papers to open the estate when your loved one died) when you reconcile the Estate (usually the first reconciliation occurs 3 months from date of death and the second one happens after six months have passed).
So, no, you shouldn't close that account yet. It's OK to distribute some money, but don't empty the account or close it. You may need some money for estate-related expenses, and you may need to show that the account is active when you next reconcile the estate.
Hope that's helpful.

Barbara, you do have a good lawyer helping you with this, right?

At the end of the waiting period in your state, you move money. Not before.