By Legal Futures Associate dospay
Dealing with the financial matters of a deceased loved one can be overwhelming. One crucial aspect of estate administration is managing the assets efficiently and securely. Probate Third-Party Managed Accounts (TPMA’s) offer a solution to streamline this process. In this article, we’ll explore what these accounts are, who can open them, the steps involved, and how they function.
What is a Probate TPMA?
A Probate TPMA is a Third-Party Managed Account opened in the name of the deceased’s estate. Held securely at the Bank of England, our probate TPMA’s provide a safe repository for estate assets while executors/administrators carry out their duties. They offer superior protection compared to traditional high-street bank accounts, eliminating concerns about bank solvency. Additionally, they can generally be opened faster, expediting the estate administration process.
Who can open a Probate TPMA?
These accounts can be opened by executors named in the will or administrators appointed in the absence of a will. Once opened, the account serves as a central hub to gather all estate assets, such as funds from other bank accounts or proceeds from the sale of assets, in anticipation of distribution to beneficiaries.
Steps to open a Probate TPMA
Opening a Probate TPMA involves several key steps:
- Obtain a grant of representation: This legal document confirms your authority to handle the deceased’s assets. It can be a grant of probate (if there’s a will) or a grant of letters of administration (if there’s no will).
- Provide necessary documentation:
- Date and circumstances of death: Official records stating when and how the death occurred.
- Identifying information for the deceased: Such as a passport or driving licence.
- Death certificate: An official copy of the Register or the original certificate if the death occurred overseas.
- Confirmation of executor/administrator status: Proof of your role, or verification if a solicitor or practitioner is involved.
- Approximate value of the estate: An estimate to understand the scope of the assets involved.
Access to the Probate TPMA
The account is accessible online 24/7 to the solicitor or administrator managing the estate. Recognising the importance of transparency, we also provide read-only access to executors if they have outsourced the estate’s administration. This allows them to monitor transactions and stay informed about the estate’s financial activities.
If deemed beneficial, read-only access can be extended to beneficiaries or other interested parties, but only with direct authorisation from the executors.
Permissible payments from the Probate TPMA
Given the sensitive nature of estate funds, the account restricts payments to specific recipients:
Solicitor/administrator fees
We process payments for professional services against invoices that are properly rendered. These invoices must align with a client care letter or a quotation that has been issued and approved by the executors.
Beneficiaries
Subject to standard compliance requirements, we facilitate distributions to beneficiaries. This includes individuals, charities, or causes specified in the will or grant of letters of administration.
Why choose our probate TPMAs?
- Speedy Setup: Faster to open than traditional bank accounts, ensuring no unnecessary delays in estate administration.
- Enhanced Security: Funds are held at the Bank of England, offering peace of mind regarding bank solvency.
- Transparent Access: Online availability ensures executors and authorised parties can monitor the account at their convenience.
Final thoughts
Managing a deceased estate is a significant responsibility, but you don’t have to navigate it alone. Probate TPMA’s provide a secure and efficient way to handle estate assets, ensuring that executors can fulfil their duties effectively and beneficiaries receive their rightful inheritance promptly.
If you’re an executor or administrator in need of a reliable Third-Party Managed Account, we’re here to assist you every step of the way. Visit our website to learn more about setting up a Probate TPMA tailored to your needs.
