What type of account is opened after someone dies?

An estate account is specifically designed to manage the financial assets and liabilities of a deceased person during the probate process. When someone passes away, their assets must be collected, debts paid, and any remaining assets distributed according to the will or state intestacy laws. An estate account allows the executor or administrator of the estate to conduct these transactions legally and efficiently. This type of account is opened in the name of the estate, which is a separate legal entity, distinguishing it from the individual who has passed away.

The purpose of the estate account ensures that all financial matters related to the deceased are handled properly, reflecting the rightful management of their financial affairs after death. It simplifies the process for settling debts and distributing assets, which is critical during what can often be a complex and emotional time for the deceased's family and beneficiaries.