Opening an estate account usually costs nothing upfront at most banks, but you may face monthly maintenance fees, transaction fees, or charges for specific services like wire transfers or certified checks.
An estate account (also called a probate account or fiduciary account) is a separate bank account opened in the name of the estate itself, not in your name as executor. The bank holds money belonging to the deceased person's estate while it moves through probate or settlement. Whether you pay anything depends on the bank, the account type they offer, and what you do with the money while it sits there.
Most banks do not charge a fee to open the account itself. However, some banks charge a monthly maintenance fee ranging from $5 to $25 per month, and that fee continues for as long as the account remains open—which can be months or years depending on how long probate takes. Other banks waive the monthly fee if you maintain a minimum balance, often $1,000 to $5,000. A few banks offer estate accounts with no monthly fee at all, but you have to ask; they do not advertise this.
Key Takeaways
- Opening the account itself is free at virtually all banks, but monthly maintenance fees of $5 to $25 may apply depending on the bank and account type.
- You will likely pay per-transaction fees for wire transfers, cashier's checks, or other services you use to distribute money from the estate.
- Some banks waive monthly fees if the account holds a minimum balance, typically $1,000 to $5,000.
- The total cost depends more on how long probate takes and what transactions you perform than on the account opening itself.
- Fees vary significantly between banks, so calling three or four banks to compare before opening the account can save hundreds of dollars over months or years.
Monthly maintenance fees and how they add up
A $10 monthly maintenance fee sounds small until you realize probate can take 6 months to 2 years or longer. Over 18 months, that is $180 in fees for holding money that is not yours to spend. Over 24 months, it is $240. Some banks charge more—$15 to $25 per month—which pushes the total into the hundreds or thousands depending on how long the estate remains open.
The fee is charged whether or not you touch the account. You are not paying for transactions; you are paying for the bank to maintain the account as a separate entity. Some banks call this a "fiduciary account fee" or "probate account fee." Others simply charge their standard checking account maintenance fee, which may be lower or waived entirely if you meet balance requirements.
Before you open an account, ask the bank directly: "What is the monthly maintenance fee for an estate account, and can it be waived if I maintain a minimum balance?" Write down the answer. Banks do not always volunteer this information, and fees vary widely even between branches of the same bank.
Transaction fees and distribution costs
Beyond the monthly fee, you will likely pay for specific transactions. A wire transfer typically costs $15 to $30. A cashier's check costs $5 to $15. An ACH transfer (electronic transfer to another bank account) may be free or cost $1 to $5. If you need to stop payment on a check, that is usually $25 to $35. If you need a certified copy of a cancelled check or bank statement for probate court, that is often $5 to $10 per document.
These fees add up quickly if the estate has multiple beneficiaries or if you need to pay creditors, taxes, or the funeral home. An estate distributing $50,000 to five beneficiaries might incur $75 to $150 in wire transfer fees alone. An estate paying off a mortgage, credit cards, and medical bills could easily spend $200 to $400 on transaction fees.
Ask the bank for a full fee schedule before opening the account. Some banks offer discounted or waived transaction fees for fiduciary accounts; others do not. This is a legitimate reason to shop around.
How to compare banks and find lower-cost options
Call at least three banks in your area and ask these specific questions: What is the monthly maintenance fee for an estate account? Is there a minimum balance that waives the fee? What do you charge for wire transfers, cashier's checks, and ACH transfers? Do you offer any discounts for fiduciary accounts?
Credit unions sometimes charge lower fees than commercial banks, and some credit unions have no monthly maintenance fee for estate accounts at all. If the deceased person was a member of a credit union, that credit union may offer better rates than a bank you have never used. However, credit unions are not required to offer estate accounts, so call first.
Online banks typically charge lower monthly fees than brick-and-mortar banks, but some do not offer estate accounts at all. If an online bank does offer them, the monthly fee is often $0 to $5, which can save hundreds of dollars over a long probate. The trade-off is that you cannot deposit cash in person and you may have fewer options for services like cashier's checks.
Whether the estate pays the fees or you do
The fees come out of the estate's money, not your pocket as executor. When you open the account, you will sign documents stating that you are acting in a fiduciary capacity—meaning you are managing the money on behalf of the estate, not for yourself. The bank will deduct fees directly from the account balance.
This matters because it reduces the amount available to distribute to beneficiaries. If the estate has $10,000 and you pay $200 in fees over 20 months, beneficiaries receive $9,800. The fees are a legitimate estate expense, and you should document them for the probate court if required. Keep all bank statements and fee notices.
Special situations that may cost more
If the estate account needs to earn interest, some banks charge a higher monthly fee for interest-bearing accounts. If you need to hold the account open longer than usual—for example, because a will is being contested or a beneficiary cannot be located—fees accumulate. If the estate is large and requires multiple accounts (one for liquid assets, one for investment accounts), you may pay multiple monthly fees.
Some estates also need to file a separate tax return (Form 1041), which is not a bank fee but is a cost of managing the estate. That is typically paid to a tax preparer or accountant, not the bank, but it is worth knowing that banking fees are not the only costs involved.
What to do if fees seem too high
If the bank quotes a monthly fee that seems excessive, ask whether you can close the account early once distributions are complete. Some banks will waive or refund fees if you close within a certain timeframe. Others will not. Get this in writing before you open the account.
You can also ask the probate court whether it has a list of banks that offer reduced-fee estate accounts. Some courts have relationships with local banks that provide better terms for estates. The court clerk or your probate attorney may know which banks are most reasonable.
If the estate is very small—under $5,000—it may not be worth opening a separate estate account at all. Some states allow small estates to skip probate entirely, and the money can be transferred directly to beneficiaries without a bank account. Talk to a probate attorney about whether this option is available in your state.
Frequently Asked Questions
Do all banks charge a monthly fee for estate accounts?
No. Most banks charge $5 to $25 per month, but some banks and credit unions offer estate accounts with no monthly fee. You have to call and ask; banks do not advertise this. The fee may also be waived if you maintain a minimum balance, typically $1,000 to $5,000.
Can I use my personal checking account instead of opening an estate account?
No. The probate court requires a separate account in the estate's name, not your personal account. Using your personal account can create legal problems and may be considered mishandling estate funds. The bank will not open a personal account in the estate's name anyway; they require probate documents.
How long does an estate account usually stay open?
It depends on how long probate takes, which varies by state and complexity. Simple estates may close in 6 to 12 months. Complex estates can take 2 to 3 years or longer. The longer it stays open, the more you pay in monthly fees, so closing it as soon as distributions are complete is important.
What happens to leftover money in the estate account?
Once all debts, taxes, and distributions are paid, any remaining balance goes to the residuary beneficiaries named in the will, or to the state if there is no will and no heirs can be found. The account is then closed. The bank will not hold money indefinitely.
Can I earn interest on an estate account?
Yes, some banks offer interest-bearing estate accounts, but they may charge a higher monthly fee. For most estates, the interest earned is small—often just a few dollars—and does not offset the higher fee. Ask the bank to calculate whether an interest-bearing account makes sense for the estate's size and expected duration.