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Cash Accounts: Handling 3rd Parties

Create a Cash Account to keep track of cash handled by a third party

Using a cash account in this instance is ideal where a beneficiary, executor or other person receives or pays money in connection with the estate.  For example when a payment is made to the firm on account of costs and credited to the firm's client account.

A cash account in the name of the 3rd party will be created and using the “transfer between accounts” function, an amount will be transferred from the 3rd party's cash account into the client cash account.

The balance sheet will show the payee as being owed the amount paid and when eventually he is repaid out of the client account the transfer function would be applied, debiting the client account and crediting the 3rd party's account.

Other examples would be if the person involved receives dividends, or perhaps the cash in the house at the date of death, or pays the IHT. All these transactions will be posted through Probate Plus and the relevant person's cash account debited or credited.

Click here to learn about setting up a cash account

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