My father-in-law died and left my husband as the beneficiary. The bank says that we need to set up an estateaccount and deposit the money into that account to pay for the expenses. Is that true even though my husband is the beneficiary?
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The laws of your state will determine what is involved in administering your father-in-law's estate. Often such things depend on the size of the estate and the nature of any potential liabilities.
If the bank is holding an account in the name of your late father-in-law, and the amount is relatively small, your state may have a law that would permit, not require, the bank to pay the account balance to the next-of-kin. The bank will know whether it can do so, and what documents your husband will need to provide to enable the bank to make that payment.
If your husband isn't able to claim the account in that way, the bank will only be able to deal with the personal representative of the estate. That means that whoever is appointed by the court to act as executor or administrator of the estate will have to provide a copy of his/her appointment. The bank should then close the account and remit the balance to the estate's representative.
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The laws of your state will determine what is involved in administering your father-in-law's estate. Often such things depend on the size of the estate and the nature of any potential liabilities.