Estate EIN: Why Every Executor Needs One
When a person dies, their Social Security number is retired. Among other things, this prevents identity theft, but it also means you can’t use their SSN for taxes or banking anymore. But banks, the IRS, and even investment accounts still need a valid tax ID to keep things moving until an estate can be closed. That’s where an EIN (Employer Identification Number) or Estate EIN comes in. It bridges the gap for the period after you die to when the court and estate administrators can settle your affairs.
Think of the estate like a temporary company that exists only to wrap up the deceased person’s financial life. It can own property, pay bills, collect money, and file taxes, but it needs its own identification number to do that. The EIN becomes the estate’s Social Security number for all legal and financial purposes until the estate is fully settled.
If you’re wondering what an estate EIN is, when you need one, and why it matters, you’re in the right place. In most cases, you’ll be in probate and likely have a lawyer helping guide you through the process, but this guide is here to give you the plain-English version. No jargon, no legalese, just the essentials so you know exactly what to do.
What Is an Estate EIN?
An Estate EIN is a tax ID number issued by the IRS that functions like a Social Security number for the estate. Once someone dies, you can’t use their SSN to manage money, file taxes, or open accounts. There is a stop gap needed for everything financial between the period after someone dies and when their financial affairs can be fully settled. The EIN becomes the estate’s official identity for all things financial and tax-related.
Why Does the Estate Need Its Own Tax ID?
When someone dies, their Social Security number is closed, and the estate becomes its own legal entity. That means the estate needs its own tax ID, called an EIN (Employer Identification Number). Executors and administrators don’t act in their personal capacity, they act as representatives (or fiduciaries), a party that is legally responsible for handling the estate on behalf of heirs and creditors. Because of this, all transactions must go through an estate bank account tied to the estate’s EIN, not the executor’s or administrator’s personal account.
Here are the most common reasons for an (EIN):
Open an Estate Bank Account - You’ll need a separate account to pay bills, collect funds, and keep estate money separate from your own. Banks won’t accept the deceased’s SSN since it is no longer active so they require the estate’s EIN.
Report Income During Probate - If the estate earns more than $600 in annual income (from interest, dividends, or rental property), you must file Form 1041 (Estate Income Tax Return). The IRS requires the EIN to process this.
File Federal Estate Tax Returns (Form 706) - For large estates (over $13.61 million in 2024), you’ll need the EIN for estate tax filings.
Pay Debts & Expenses - Any checks written from the estate need to come from an estate bank account, which runs on the EIN.
Distribute Assets Properly - Selling property, cashing in investments, or transferring assets all require estate-level authority backed by that EIN.
Do You Always Need an Estate EIN?
Not necessarily. You can skip getting an EIN if:
All assets pass through joint ownership (like a house owned jointly with survivorship rights).
Assets have named beneficiaries (life insurance, retirement accounts with a beneficiary).
Assets are held in a revocable living trust.
In those cases, funds usually transfer directly without going through the estate. Another reason to do all of the above while you are alive and well is so your descendants don’t need to deal with the daunting process of closing your estate through probate court. Learn more about trusts and naming beneficiaries in our recent guides.
When Should You Apply for an EIN?
The best time to apply for an estate EIN is right after you receive Letters Testamentary (or Letters of Administration) from the probate court. You’ll need those documents to prove you’re the authorized executor or administrator before the IRS approves your EIN application.
If you have more specific questions on this, we suggest consulting your lawyer on timing and process.
How to Apply for an Estate EIN
Even though a good probate attorney will help you through this process, here is a quick overview in case it saves you on the legal fees of having to ask an attorney.
The good news: you can apply online with the IRS in under 15 minutes. Finally, something fast and easy.
Gather your documents
Death certificate
Letters Testamentary/Administration
Executor/administrator personal details
Apply with the IRS
Apply online with the IRS EIN Assistant for instant approval.
Or file Form SS-4 by fax or mail (slower).
Use it immediately to
Open the estate bank account (bank of your choice)
Start paying bills, collecting funds, and handling taxes under the estate’s name.
Best practices for Executors using an EIN and Estate Bank Account
Open the account in the estate’s legal name
The account title should read something like: “Estate of [Full Legal Name], Deceased.” This makes it clear that funds belong to the estate, not the executor personally.
Keep estate funds completely separate
Never deposit estate money into your personal account or use the estate account for personal transactions. Courts take “commingling funds” very seriously, and it can expose you to liability.
Use one account for everything
All income (refunds, last paychecks, investment income, etc.) should flow into the estate account. All expenses (funeral costs, debts, legal fees, taxes) should come out of it. This creates a clean paper trail for probate and final accounting.
Track every transaction
Keep meticulous records of deposits and withdrawals. Many executors use a simple spreadsheet or accounting software to log each transaction with dates, amounts, and purpose. Courts and heirs can request to see this at any time and probate courts often want to see paper records.
Don’t distribute assets too early
It can be tempting to pay heirs right away, but you need to confirm all debts, taxes, and fees are covered first. If you distribute early and the estate runs short, you could be personally responsible for the gap.
Close the account
Once probate is complete, debts are settled, and distributions are made, the account should be closed. Keep the final statements as part of the estate’s permanent records.
Does the Estate EIN Get Retired?
Yes. An Estate EIN (Employer Identification Number) is only valid while the estate is open. Once the estate has been fully settled and the final tax returns are filed, the EIN is effectively retired. You don’t “close” it the same way you would cancel a personal SSN, but the IRS considers it inactive once:
The final Form 1041 (estate income tax return) is filed and marked as “final return.”
The estate’s assets are fully distributed, debts are paid, and probate is closed.
Pro Tips for Executors
Order multiple certified copies of Letters Testamentary. You’ll need to show them when opening accounts or filing paperwork.
Keep estate money separate — mixing personal and estate funds can cause major headaches.
Stay organized! Track income, expenses, and debts carefully. The IRS (and beneficiaries) will expect a clear paper trail.
Key Takeaway
Once someone dies, their Social Security number retires with them. The estate needs its own EIN to prove it exists, pay the bills, and keep the IRS happy. An estate EIN isn’t optional for most executors. It’s the number that unlocks everything from opening an estate account to filing taxes. Without it, you’re stuck.
Once you’ve got the death certificate and your Letters Testamentary, apply for the estate EIN right away. It’s free, fast, and makes the rest of probate possible.