To set up an estate account, you need three things in this order: a court document naming you as executor or administrator, a federal tax ID number for the estate, and an in-person visit to a bank with those documents plus a certified death certificate. The account itself is an ordinary checking account, but it is titled in the estate’s name and used only for estate money. Every dollar the deceased left behind flows through it, and every debt and distribution gets paid from it.
When You May Not Need One
Not every death requires a formal estate account. Assets with named beneficiaries or survivorship rights pass directly to those people and never enter the probate estate. That includes life insurance, 401(k)s and IRAs with designated beneficiaries, joint accounts with survivorship rights, payable-on-death and transfer-on-death accounts, and anything held in a living trust. None of these belong in an estate account.
For smaller estates, most states offer a simplified process using a small estate affidavit. The dollar limits range widely by state, from roughly $10,000 to $275,000, and real estate is usually excluded from the calculation. If the estate qualifies, the inheritor can often present the affidavit and a death certificate directly to the bank to claim funds, with no court letters and no separate estate account needed. There is typically a 30 to 45 day waiting period after the death before this option is available.
Step 1: Get Court Authority
Banks will not open an estate account without proof that you have legal authority to act. If the deceased left a will naming you as executor, the probate court issues Letters Testamentary. If there was no will, the court appoints an administrator (usually a spouse or next of kin) and issues Letters of Administration. Both documents do the same job: they tell banks and other institutions that you are the person authorized to handle the estate’s finances.
To get them, file a petition with the probate court in the county where the deceased lived. Bring a certified copy of the death certificate, a copy of the will if one exists, and your own identification. The court schedules a hearing, verifies the will, and confirms you are suitable to serve. Once approved, you receive the letters.
Ask for several certified copies. Banks, brokerages, and other institutions will each want their own original. The full probate process typically takes six to nine months, but the initial hearing to get your letters usually happens well before that.
Step 2: Get an EIN for the Estate
An estate is its own taxpayer, separate from the person who died, so it needs its own Employer Identification Number. The bank will ask for it before opening the account.
The fastest way to get one is through the IRS website at IRS.gov/EIN. The online application walks through a short set of questions and issues the EIN immediately when you finish. It is 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. You cannot save progress partway through, and the session times out after 15 minutes of inactivity, so have the deceased person’s Social Security number and your own information ready before you start. Only one EIN can be issued per responsible party per day.1Internal Revenue Service. Get an Employer Identification Number
Only the appointed executor or administrator, or a formally authorized third-party designee, can apply. On the application, select “estate” as the entity type and enter the deceased person’s Social Security number.2Internal Revenue Service. Instructions for Form SS-4 (12/2025)
Step 3: Open the Account at a Bank
Most banks require an in-person visit to open an estate account. Bring:
- A certified death certificate.
- Your Letters Testamentary or Letters of Administration.
- The estate’s EIN.
- Your personal ID, such as a driver’s license or passport.
The bank will have you complete account-opening forms naming the estate as the account holder and you as the authorized signer. The title of the account typically follows a set format: your name, your role, and the estate name. For example, “Jane Smith, Executor, Estate of John Smith, Deceased.” That titling keeps the account legally distinct from your own finances. Some banks require an initial deposit to activate it.
You do not have to use the same bank the deceased used, but it can simplify the transfer of funds if you do, since that bank already has the records. If you choose a different institution, compare monthly fees, transaction charges, and whether the branch has staff who work with estate accounts regularly. Online banking access is worth prioritizing, because you will be writing checks and tracking transactions across many months of probate.
What Goes Into the Account
Once it is open, your job is to funnel every probate asset into it. That includes cash from the deceased person’s individual bank accounts, proceeds from selling personal property, rent collected on estate-owned real estate, dividends and interest earned on estate investments, and any other income arriving after the date of death. The estate account becomes the single hub for money flowing in and out.
Non-probate assets stay out. Life insurance paid to a named beneficiary goes directly to that person and never touches the account. The same applies to jointly held accounts, retirement funds with named beneficiaries, and trust assets. Depositing those into the estate account creates confusion and can delay distributions to the people entitled to receive them directly.
Keep Estate Funds Strictly Separate
Do not deposit estate funds into your personal account or use estate money for personal expenses, even temporarily, and even if you intend to pay it back. Mixing the two is called commingling, and courts treat it seriously. A court can void transactions, remove you as executor, or order you to personally reimburse the estate for any losses. If the commingling looks like theft, criminal charges are possible.
Keep detailed records of every deposit and every payment. Save receipts, bank statements, and correspondence with creditors. The probate court will eventually require a full accounting of everything that came in and went out of the account, and gaps invite objections from beneficiaries. A simple spreadsheet tracking the date, amount, payee, and purpose of each transaction will save you significant trouble later.
Closing the Account at the End
After all debts are paid, tax returns are filed, and the court approves your final accounting, you distribute the remaining funds to the beneficiaries named in the will or determined by state intestacy law. Get a signed receipt from each person who receives a distribution; the probate court will typically require them before granting your final discharge. Once the last distribution clears, close the estate account at the bank.