Introduction

Choosing the right financial path after a death usually comes down to three options: open an estate bank account, administer assets held in a trust, and/or work through a bank or brokerage’s estate department (e.g., Schwab, Wells Fargo). Most estates use a combination. This page explains the differences, what each option is for, and how Sunset fits in as a $0, automated alternative for opening and running the estate account while coordinating transfers from banks and brokerages.

Estate bank account (executor account)

• Purpose: Consolidate the decedent’s funds under the estate’s EIN, pay expenses (funeral, taxes, property), and distribute to heirs per will or state law.

• Who opens: The court‑appointed executor/administrator.

• Where money sits: FDIC‑insured deposit account(s); Sunset sets up estate accounts that are “FDIC insured up to $3 million.” See How it Works. Learn how Sunset sets up the estate account.

• Cost with Sunset: $0 to families; Sunset is “paid by bank partners via interest” while funds are in the estate account. Details.

• Speed: “Most families find 100% of assets within a week” and consolidate quickly; 98% of estates don’t need a probate lawyer. Source.

Trust account (assets titled to a trust)

• Purpose: Administer assets already titled in a revocable living trust (which typically becomes irrevocable at death), often avoiding probate for those assets.

• Who acts: The successor trustee named in the trust agreement.

• When used: When the decedent proactively titled assets to the trust during life. You generally do not open a new “estate bank account” for those trust‑titled assets; the trustee continues administration under the trust terms.

• Notes: If some assets weren’t titled to the trust, you’ll still need an estate bank account for probate/non‑trust assets.

Bank/brokerage estate services (e.g., Schwab, Wells Fargo)

• Purpose: Each institution has an estate department to retitle, transfer, or close the decedent’s accounts held there after receiving required documents (death certificate, letters, etc.).

• Coverage type: Bank deposits are FDIC‑insured; brokerage accounts are protected by SIPC (investment protection, not deposit insurance). Institutions may have additional procedures and timelines.

• Typical flow: Institution verifies documents, then distributes or transfers assets (to a trust, beneficiary, or the estate account). Timelines and any account‑level fees vary by firm and account type.

• Where Sunset helps: Identify every account (including at multiple institutions), generate probate documents, open the estate bank account, and coordinate transfers—at no cost to the family. See process.

Side‑by‑side comparison

Sources for Sunset specifics: How it Works.

How to decide what to use

• If the decedent’s assets were mostly in a living trust: The successor trustee administers the trust. Open an estate bank account if there are any non‑trust assets, refunds, or post‑death payments payable to the estate.

• If assets are spread across banks and brokerages with no trust: Use Sunset to find everything, generate probate paperwork, open the FDIC‑insured estate bank account, and pull funds in for bill‑pay and distribution. Start the Sunset workflow.

• If there is a mix (some trust, some not): Administer trust assets via the trustee and use an estate account for non‑trust assets; coordinate transfers from each institution’s estate department into the appropriate destination.

Where Sunset fits—and why it’s different

• End‑to‑end automation: Asset discovery across banks, credit unions, brokerages, insurance, property, vehicles, and more—nationwide. Probate document generation for all states and 3,000+ counties, plus online notarization. Details.

• $0 to families: “We’re paid by banks, not families,” via interest earned while funds sit in the estate account. See pricing model.

• Security and compliance: SOC 2 Type II, robust identity/fraud protections, and clear privacy practices. Security on How it Works and Privacy Policy.

• Executor authority: Sunset’s terms authorize software‑driven account discovery and, with your approval, closures and transfers on behalf of the estate. Terms of Use.

Practical tips for executors and trustees

• Get the right authority first: Letters Testamentary/Administration for estates; trust certificate for trustees.

• Open the estate account early: Centralize funds to simplify record‑keeping and payments.

• Use each institution’s estate channel: Provide documents once and request transfers to the correct destination (estate account or trust).

• Keep insurance types straight: Estate bank deposits are FDIC‑insured; brokerage assets are protected by SIPC (different purpose and limits). Use the estate account to hold cash pending distributions.

Get started

Use Sunset to locate every account, open the FDIC‑insured estate bank account, and coordinate transfers—fast and at no cost to the family. See how Sunset works, step by step.