Obtaining an E.I.N. for a Decedent's Estate

"... in this world nothing can be said to be certain, except death and taxes." - Benjamin Franklin

As the executor or administrator of an estate, you have the responsibility to place the Decedent's assets under your control. Before a financial institution will release the funds, the institution will usually request an "E.I.N." or "Employer Identification Number" for the Estate. What is this number and how do you get one?

An Employer Identification Number (hereinafter "EIN") is also known as a Federal Tax Identification Number, and is used to identify a business entity for tax and anti-terrorism purposes. Since the Decedent and his or her estate are treated differently for tax purposes, an EIN is needed to identify the estate's financial dealings after the death of the Decedent. Furthermore, the USA Patriot Act requires financial institutions to verify the identity of individuals wishing to conduct financial transactions with the institution. This is known as the "Customer Identification Program" or the "know your customer" rule.

An EIN is needed whenever an estate is going to conduct a financial transaction. For example, family members are often sent a check that is payable to the "Estate of [the Decedent]." Most banks will not allow you to deposit that check into your personal bank account as the check is not payable to you individually. This is true even if you are the sole heir. Instead, the bank will insist that you open up a checking account for the estate and only then will the bank allow you to deposit the check. In order to open the checking account, you will typically need five items:

• an EIN
• Letters Testamentary or Letters of Administration
• the Decedent's death certificate
• proper identification for you
• a completed application to open an account (supplied by the bank)

Obtaining an EIN is actually quite simple. You can obtain one within five minutes by going to IRS.gov We will guide you through this process, step-by-step. Before you begin, you will need the following information:

• The executor's or administrator's name, address, social security number
• The State and County of the executor's or administrator's appointment by a court
• The Decedent's name, social security number, date of death
• The desired end of the estate's tax year (usually December) but can be up to one year after the Decedent's date of death

Go to IRS.gov Select the option to "Apply for an Employer ID Number."

Confirm that you are applying during operating hours. Start your Application.

Begin Application.

Select button indicating that you are getting an EIN for an Estate.

Confirm that you want an EIN for a Decedent's Estate.

Enter the Decedent's Information.

From here, you need only put in the decedent's date of death, county of appointment, the executor's or administrator's information, the desired end of the tax year (talk with your accountant), and the number of employees (zero).

One last thing to note: when you click the final "submit", do not touch the computer or the back arrow until the website has displayed your EIN. Write the number down somewhere first, then reach for your mouse and print the confirmation page.