How Do I Get an EIN Number for an Estate?

An Employer Identification Number, or EIN, is a unique nine-digit number issued by the Internal Revenue Service (IRS) to identify a business entity. For an estate, this number functions much like a Social Security Number does for an individual, becoming its official tax identifier. The EIN is used for all financial and administrative activities that occur after a person’s death. The primary purpose of securing an EIN is to properly manage the estate’s assets and comply with tax filing obligations, which allows an executor to conduct business on behalf of the estate.

Determining the Need for an Estate EIN

Not every estate is required to obtain an EIN, as the need arises from specific financial circumstances. One of the most common reasons is the need to open a bank account in the name of the estate. Financial institutions require an EIN to separate the estate’s funds from the decedent’s personal accounts and the executor’s funds, ensuring a clear financial record.

Another trigger is the estate’s income level. If an estate generates gross annual income of more than $600, it must file a U.S. Income Tax Return for Estates and Trusts, Form 1041. This income can come from sources like dividends, interest, or rent from properties held by the estate. An EIN is also necessary if the estate includes a business that continues to operate after the owner’s death.

Information Required for the EIN Application

The executor or administrator must gather several pieces of information for the application, IRS Form SS-4, Application for Employer Identification Number. You will need the name and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) of the responsible party. For an estate, this is the court-appointed executor, administrator, or personal representative.

The application also requires:

• The full legal name of the estate, formatted as “Estate of [Decedent’s Full Name], Deceased”
• The mailing address for the estate, which is often the executor’s address
• The decedent’s full name and their SSN
• The date the estate was created, which is the decedent’s date of death
• The closing month of the accounting year; most estates use a calendar year ending December 31

This choice determines the due date for the estate’s annual income tax return.

The Application Process for an Estate EIN

The IRS provides several methods to apply for an estate’s EIN, with the online application being the most efficient. This free service on the IRS website allows the responsible party to receive the EIN immediately upon completing the application. The system guides the user through a series of questions based on the information gathered for Form SS-4.

For those who cannot use the online system, applications can be submitted by mail or fax. To apply by mail, you must complete Form SS-4 and send it to the designated IRS service center; processing can take four to six weeks. Applying by fax is a faster alternative, with a turnaround time of about four business days, after which the IRS will fax back the EIN.

Using the Estate’s EIN After Issuance

Once the EIN has been issued, the executor or administrator can use it for official estate business. A primary step is to open a bank account in the name of the estate. This account is used to deposit funds owed to the estate, such as final paychecks or life insurance benefits, and to pay the decedent’s final bills, taxes, and other administration expenses.

The EIN is also required for all tax filings on behalf of the estate. The EIN must be clearly listed on Form 1041 and any other required tax documents. Furthermore, the executor should provide the EIN to any institution paying income to the estate, such as brokerage firms paying dividends or interest, to ensure proper tax reporting.