I think I know the answer, but I'd like some confirmation....

We have a customer who was named executrix on her deceased husband's estate. The estate account was not held at our bank. Anyway, the estate has been settled and closed by the court for a few months now, but the executrix just received a check from one of her husband's accounts. The check is payable to Jane Doe, Executrix of the Estate of John Doe. She wants to deposit it into her personal checking account.

TN did just pass an amendment that would allow negotiation of a small check (under 2500.00) without an open estate, but this check is over that limit. Am I correct in thinking that the check needs to be negotiated through the estate because it is payable to her in the capacity of executrix? Am I also correct in thinking that she would need to go back to the court to re-open the estate to negotiate this item?

Thanks so much for any help you can offer.

You make the call whether or not you want to take the risk of accepting the check for deposit.

She and her attorney need to determine what they need to do from a legal standpoint and it is not the bank's position to make any suggestions except that she needs to talk to her legal counsel.

You should ask to see a copy of the Court's final order which approved the closing of the probate estate and authorized the executrix to disburse the estate property to the decedent's beneficiaries. It is common for probate attorneys to include a provision in the Order that should any property belonging to the decedent be later discovered (i.e., after the closing of the estate), that such property be disbursed to identified beneficiaries without further order of the Court.

If the final order contains such a provision, then the identified beneficiary is the person entitled to deposit the check. If there is no such provision in the final order, you should consult with your bank counsel to determine if the executrix needs to file a petition with the Probate Court to reopen the estate or obtain an Order authorizing her to negotiate the check. As Randy indicates, if you accept the check with no proof that the exectrix is entitled to deposit the check into her personal account, your bank takes a risk in doing so.

Another option would be for the women to contact the issuer of the check and ask if they will reissue the check payable to her personally, rather than to her as Executrix of the Estate. It's unlikely that they will, but there would be no harm in her making the inquiry.