To open an estate account, you need three things in this order: a court document naming you as executor or administrator, an Employer Identification Number (EIN) for the estate from the IRS, and an appointment at a bank with a certified death certificate and your ID. The court step is the slowest and the one you should start first. Once your letters are issued, the EIN takes minutes online, and the bank appointment itself is usually a single visit.
Why the Account Has To Be Separate
An estate account is a bank account opened in the name of a deceased person’s estate. Its job is to hold the deceased’s money completely apart from yours while you pay their debts and taxes and eventually distribute what’s left to beneficiaries.
Mixing estate funds with your own, known as commingling, is one of the fastest ways to get removed as executor or held personally liable for losses. A probate court can void your actions, order you to reimburse the estate, or both. If a court views the mixing as theft, criminal charges are possible. The separate account creates a clean paper trail that protects you as well as the beneficiaries.
Step 1: Get Court Authority
No bank will open the account until you can prove you have the legal right to act for the deceased. If there’s a will naming you as executor, the probate court issues Letters Testamentary. If there’s no will, the court appoints an administrator and issues Letters of Administration. Names vary by state, but every bank recognizes these documents.
To get them, file a petition with the probate court in the county where the deceased lived, along with the original will (if one exists) and a certified death certificate. Filing fees vary widely by jurisdiction. The court can take anywhere from a few weeks to several months to issue letters, depending on caseload and whether anyone contests your appointment.
Ask for multiple certified copies when the letters are issued. Banks, financial institutions, and government agencies routinely require originals or certified copies, and you’ll go through them faster than you expect. Some banks also require letters issued within a specific window, often 60 or 90 days, so older certified copies may not work when you finally get to the bank.
Small Estate Affidavits
If the estate is small enough, you may be able to skip full probate. Most states offer a simplified process, often called a small estate affidavit, that lets you collect and distribute assets without court-appointed letters. Thresholds vary a lot by state, ranging from around $10,000 to $275,000. Banks handle these affidavits inconsistently. Some accept them for opening an estate account; others refuse and require formal probate documents regardless of estate size. Call the bank first before relying on the shortcut.
Step 2: Get an EIN From the IRS
Every estate needs its own Employer Identification Number. The EIN works like a Social Security number for the estate. It’s how the IRS tracks the estate’s income and tax obligations, and it’s what the bank uses to tie the account to the estate rather than to you personally.
The fastest route is the IRS online EIN Assistant at IRS.gov. Select “Estate” as the entity type, enter the deceased’s name, Social Security number, and date of death, and enter your own name and Social Security number as the responsible party. The tool issues the EIN immediately. It’s available Monday through Friday from 6:00 a.m. to 1:00 a.m. Eastern, Saturdays from 6:00 a.m. to 9:00 p.m., and Sundays from 6:00 p.m. to midnight.1Internal Revenue Service. Get an Employer Identification Number
If you can’t apply online, you can submit IRS Form SS-4 by fax or mail. Fax takes about four business days; mail takes four to six weeks.
Step 3: Gather the Documents the Bank Will Ask For
Once you have your letters and EIN, pull the full document set together before you schedule the bank visit. Most banks require all of the following:
- Certified death certificate. Some banks accept a legible photocopy; others insist on a certified original.
- Letters Testamentary or Letters of Administration, in original or certified form.
- Your EIN confirmation from the IRS. That’s the CP 575 notice if you applied online, or the letter the IRS mailed back if you applied by fax or mail.
- Your own government-issued photo ID, such as a driver’s license or passport.
Bring originals of everything. Banks routinely reject photocopies of court documents. If your letters are older than the bank’s cutoff, plan a trip back to the probate court for fresh certified copies before your appointment.
Step 4: Pick a Bank and Book an Appointment
You don’t have to use the deceased’s bank, though staying there can make it easier to move existing accounts into the estate account. When you’re comparing options, look at monthly maintenance fees on estate accounts, online banking and bill pay (you’ll be paying a lot of bills), and branch convenience. Some institutions have dedicated estate or trust departments whose staff work with fiduciary accounts regularly; that experience can be worth a slightly higher fee if this is your first time as executor.
Call ahead to confirm the bank’s exact requirements. Requirements vary between institutions, and showing up short a document wastes a trip. Book an appointment with a new accounts representative rather than walking in — estate accounts need more review than a standard checking account, and many branches loop in back-office or trust staff to finish the setup.
If There Are Co-Executors
If the will names more than one executor, expect friction. Many banks are reluctant to open estate accounts with more than one signer because conflicting instructions create liability for them. Banks that do allow co-executors usually require all of them to be physically present to sign the paperwork, with no remote sign-ups. If a co-executor lives out of state, that person may need to travel for the initial setup. Some banks let one co-executor be the primary signer with the other’s written consent, but that’s not universal. Clarify the policy before the appointment.
FDIC Coverage on Estate Accounts
Estate accounts fall under the FDIC’s single account category, not the trust category. The FDIC treats the deceased as the owner, and coverage is capped at $250,000. That limit is combined with any other single accounts the deceased still holds at the same bank.2FDIC. Single Accounts
Naming beneficiaries on the estate doesn’t increase coverage the way it does on some trust accounts. Beneficiaries are irrelevant to FDIC coverage on a decedent’s estate account. If the estate holds more than $250,000 in cash, split it across banks to keep each account under the limit.2FDIC. Single Accounts
Step 5: Open the Account With the Right Title
At the appointment, present all your originals and confirm the account is titled correctly. It should read something like “Estate of [Deceased’s Name]” and be linked to the estate’s EIN, not your personal Social Security number. Getting the title or tax ID wrong creates problems with every check you deposit and every tax return you file later on.
You’ll make an initial deposit, then receive checks, a debit card where applicable, and online banking credentials. From that point, every dollar tied to the estate moves through this account: income from the deceased’s assets goes in, and expenses, debts, and eventual distributions go out.
One More Filing: IRS Form 56
This one gets overlooked, but the IRS expects you to file Form 56, Notice Concerning Fiduciary Relationship, once you’re appointed. It tells the IRS you’re authorized to act for the deceased taxpayer — to file returns, receive tax correspondence, and handle refunds or liabilities in that role. You attach a copy of your letters and mail it to the IRS service center where the deceased filed returns.3Internal Revenue Service. Instructions for Form 56
Skipping Form 56 doesn’t carry a penalty on its own, but without it the IRS has no record of your authority. Tax notices keep going to the deceased’s last address, and problems can escalate before you hear about them. The form takes about ten minutes and saves real headaches down the line.