Key Takeaways
- An estate often needs an Employer Identification Number (EIN) to open bank accounts, receive income, or file taxes.
- Executors can apply for an EIN for free directly with the IRS, most commonly online.
- The estate is a separate tax entity from the deceased, and the executor is responsible for obtaining and using the EIN correctly.
When settling an estate, one common question is whether you need to obtain an EIN (Employer Identification Number). An EIN functions like a Social Security number for the estate and is required for many financial and tax-related tasks. Here’s how to determine if one is needed and how to get it.
What You’ll Need
Before applying, gather the following:
- Certified death certificate
- Deceased’s full legal name, Social Security number, and date of death
- Executor or administrator documentation (Letters Testamentary, Letters of Administration, or court appointment)
- Estate mailing address
- Your SSN or ITIN as the responsible party
Step 1: Confirm the Estate Needs an EIN
An estate generally needs its own EIN if it will:
- Open an estate bank or brokerage account
- Earn income after death (interest, dividends, rent, or sale proceeds)
- File IRS Form 1041 – U.S. Income Tax Return for Estates and Trusts, which is typically required once the estate earns $600 or more in gross annual income
Very small estates with no post-death income and no separate estate accounts may not need an EIN, but this should be confirmed with a tax professional.
Step 2: Choose How to Apply
The IRS issues EINs at no cost. You can apply in one of the following ways:
- Online (recommended):
Use the IRS online EIN application and select “Estate” as the entity type. The application must be completed in one session, and EINs are usually issued immediately. - By mail or fax:
Complete Form SS-4 and submit it to the IRS. This method can take several weeks to process.
Step 3: Complete the Application Carefully
When applying, be sure to:
- List the entity name as “Estate of [Deceased’s Full Name]”
- Enter the date of death as the start date of the estate
- Identify yourself as the responsible party using your SSN or ITIN
Errors can delay the process and may require additional IRS forms to correct.
Step 4: Save the EIN Confirmation
Once issued, save the EIN confirmation notice. You’ll need it to:
- Open estate bank or investment accounts
- Provide to financial institutions issuing Forms 1099
- File Form 1041 and other estate-related tax documents
Keep this documentation with your permanent estate records.
Common Challenges
Executors often run into issues such as determining whether an EIN is truly required, online applications timing out, or banks refusing to proceed without an EIN already issued. Addressing the EIN early can prevent delays in other estate tasks.
Conclusion
Obtaining an EIN is a key step when an estate has income, needs its own accounts, or must file taxes. With the right documents and a careful application, the process is usually straightforward. Acting early helps keep estate administration moving smoothly.
Elayne’s Automated Estate Settlements platform can handle EIN applications, track documentation, and coordinate next steps with banks and tax filings.
FAQs
Q: Is an EIN always required after someone dies?
No. An EIN is only required if the estate has income, needs its own accounts, or must file Form 1041.
Q: How long does it take to get an EIN?
Online applications typically issue an EIN immediately. Mail or fax applications may take several weeks.
Q: Can I use the deceased person’s SSN instead of an EIN?
No. Once an estate becomes a separate tax entity, it must use its own EIN for accounts and tax filings.
Q: Who is listed as the responsible party?
The executor or administrator of the estate is listed as the responsible party, using their own SSN or ITIN.
*Disclaimer: This article is for informational purposes only and does not provide legal, tax, or financial advice. EIN requirements vary based on the size and structure of the estate and applicable state law. Consult a licensed professional for guidance specific to your situation.
