How to Write a Check From an Estate Account

Writing a check from an estate account is a key part of managing a deceased person’s financial affairs. This involves disbursing funds to pay debts, cover administrative expenses, and distribute inheritances to beneficiaries. Accurate payments and proper procedures maintain clear financial records and fulfill legal obligations, ensuring transparency and accountability throughout estate administration.

Understanding Estate Accounts and Authorized Signers

An estate bank account is a temporary financial instrument established to manage a deceased individual’s assets and liabilities. It serves as the central hub for collecting all estate funds, such as bank balances, investment proceeds, and income generated during administration. Expenses like funeral costs, debts, and administrative fees are paid from this account, and distributions to beneficiaries are made from here.

The executor, administrator, or personal representative of the estate is authorized to sign checks from an estate account. This authorization comes from legal documents, such as Letters Testamentary or Letters of Administration, issued by a probate court. These individuals are fiduciaries, obligated to act solely in the estate’s and beneficiaries’ best interests. Their duties include managing assets, paying valid debts, and distributing remaining assets according to the will or applicable laws.

Estate checks differ from personal checks, representing transactions on behalf of the deceased’s legal entity, not the individual fiduciary. This separation maintains clear financial boundaries and prevents commingling personal and estate funds. A separate estate account and checks ensure proper documentation for tax purposes and provide transparency for beneficiaries and the probate court. All financial activity through the estate account must align with the fiduciary’s responsibilities.

Gathering Essential Information for Estate Checks

Before writing an estate check, gather all necessary information to ensure accuracy and compliance. Each check component documents the transaction for legal and accounting records, preventing potential issues.

The full legal name of the payee must be accurately written on the check. Precision avoids issues with cashing or depositing and ensures funds reach the intended recipient. If the check is for multiple parties, specifying “and” or “or” determines endorsement requirements.

Both the numerical and written amounts must be clearly stated on the check. The numerical amount is placed in a small box, while the written amount is spelled out on a separate line. If a discrepancy exists, the written amount is legally binding. For amounts with cents, write cents as a fraction over 100 in the written amount (e.g., “and 45/100”).

Place the current date the check is being written on the designated line. This date indicates when payment was initiated and helps track validity, as checks remain valid for six months from issue. Post-dating a check is not recommended, as banks may process it immediately.

The memo line, though optional, is useful for estate checks. It provides a clear description of the payment’s purpose, such as “final distribution to beneficiary,” “probate fees,” or “funeral expense reimbursement.” This notation helps maintain transparent records and justify disbursements. The authorized signer’s signature is required, often with their title like “Executor” or “Personal Representative,” to indicate they act on behalf of the estate. The pre-printed check contains the estate account and routing numbers.

Completing the Estate Check

After gathering all necessary information, physically fill out the estate check with precision. Use a blue or black non-erasable ink pen for legibility and to prevent alterations. Each field requires careful attention.

Write the current date in the top right corner of the check. On the “Pay to the order of” line, write the payee’s full legal name. Avoid abbreviations and ensure accurate spelling to prevent issues with cashing.

In the small box to the right of the payee line, write the numerical amount using dollars and cents (e.g., “$1,234.56”). Fill this box completely, starting numbers as far left as possible and including cents, to deter alterations. Below the payee line, spell out the amount in words, matching the numerical value (e.g., “One thousand two hundred thirty-four and 56/100”). After writing, draw a line through any remaining space to prevent additions.

On the memo line, located in the bottom left corner, state the payment’s purpose. This internal record helps track expenses and distributions for estate accounting. For example, “Payment for legal fees” or “Distribution to John Doe, Beneficiary.” Finally, sign the check on the designated signature line in the bottom right corner. The signature should match the one on file with the bank for the estate account, and it is common practice to include the title, such as “Executor” or “Personal Representative,” below or next to the signature.

Maintaining Estate Check Records

After an estate check is completed and issued, maintaining meticulous records is an important part of fiduciary responsibility. This practice ensures transparency, facilitates future financial reporting, and protects the executor from potential liabilities. Proper record-keeping supports the overall administration of the estate.

Immediately logging the details of each check in a dedicated estate check register or accounting ledger is a fundamental step. This record should include the check number, the date it was written, the payee’s name, the exact amount, and a clear description of the payment’s purpose. Such a register provides a chronological and comprehensive overview of all disbursements, serving as a primary tool for tracking the estate’s financial activity.

Beyond the check register, it is important to retain copies of the written check itself, along with any supporting documentation that justifies the payment. This documentation can include invoices, receipts, court orders, or agreements related to the expense or distribution. For example, if a check is written for a funeral expense, the corresponding invoice from the funeral home should be kept with the check record. This practice provides an audit trail for all transactions, which is necessary for probate court filings and beneficiary reviews.

Regularly reconciling the estate bank statements with the check register is also necessary. This process involves comparing the bank’s records of cleared transactions against the estate’s internal ledger to identify any discrepancies, errors, or uncleared checks. Reconciliation helps ensure the accuracy of the estate’s financial position, confirms that all payments have been processed correctly, and helps in preparing periodic accountings for beneficiaries and the court. This diligent record-keeping is a cornerstone of responsible estate management and transparent probate accounting.