How to Open an Estate Bank Account in Texas

Before the executor of a Texas estate pays a single bill or deposits a single check, they need one thing: a dedicated estate bank account. Paying estate expenses from your personal account or the deceased's frozen accounts is one of the most common and costly mistakes executors make — it creates a legal and accounting nightmare that can cost far more to unravel than it would have taken to set up the account correctly.

Here is exactly how to open one.

Why the Estate Needs Its Own Account

When someone dies, their individual bank accounts are frozen or restricted. Creditors, final payroll checks, insurance refunds, and asset sale proceeds all need somewhere to land. The estate bank account serves as the financial clearinghouse for the entire settlement process — money comes in, bills go out, and you have a clean paper trail for every transaction.

More importantly, it protects you personally. As the executor or administrator, you have a fiduciary duty to the beneficiaries. If estate funds and personal funds are mixed together — a practice called "commingling" — you can be held personally liable for any losses the estate suffers as a result. A separate account eliminates that risk.

Step 1: Get an EIN from the IRS

An estate is a separate legal entity for tax purposes, and it needs its own Employer Identification Number (EIN) — the equivalent of a Social Security number for the estate.

You can apply for an EIN in minutes at irs.gov/businesses/small-businesses-self-employed/employer-id-numbers using the online tool (available Monday through Friday, 7 a.m. to 10 p.m. Eastern). Select "Estate" as the reason for applying. The EIN is issued immediately at the end of the application.

You will need the deceased's name, Social Security number, date of death, and your contact information as the estate representative. The estate's legal name for banking purposes will be something like "Estate of [Full Legal Name of Deceased]."

Step 2: Obtain Your Letters Testamentary or Letters of Administration

Texas banks require proof that you are legally authorized to act on behalf of the estate before they'll open an account. That proof comes from the probate court in the form of Letters Testamentary (if there is a will naming you as executor) or Letters of Administration (if there is no will and the court appointed you as administrator).

You obtain Letters by filing a probate application with the county court where the deceased lived. In large counties like Harris, Dallas, Tarrant, and Travis, this is handled by Statutory Probate Courts with specialized judges. In smaller counties, it goes through the Constitutional County Court.

Base probate filing fees in Texas's major counties run approximately $360 in Harris County, $360 in Dallas County, and $382 in Travis County — plus additional fees for citations and posting. After the application is filed, there is a mandatory two-week public notice period before the court holds a hearing to admit the will and issue Letters.

Banks typically want Letters issued within the past 60 to 90 days. Order several certified copies from the county clerk (usually $2 each) — you'll need them for banks, financial institutions, and real estate transfers.

Step 3: Choose a Bank and Open the Account

You are not required to use the same bank where the deceased held accounts. In fact, using a different bank can simplify the separation of funds.

Bring to the bank:

• Your government-issued photo ID
• The estate's EIN (or the IRS confirmation letter)
• Certified copies of Letters Testamentary or Letters of Administration
• The deceased's death certificate
• The will (some banks request a copy)

The account title should read something like: "Estate of [Full Name of Deceased], [Your Name], Executor."

Most major banks — Chase, Wells Fargo, Bank of America, Frost Bank, Woodforest — handle estate accounts routinely. Call ahead to ask which branch handles estate accounts and whether an appointment is needed. Some require you to visit a branch; online-only opening is not available for estate accounts.

What Happens to Existing Accounts

If the deceased had accounts with Payable-on-Death (POD) or Right of Survivorship designations, those funds pass directly to the named beneficiaries outside of probate — they do not go into the estate account. The beneficiary simply provides a death certificate to the bank.

Accounts held solely in the deceased's name with no beneficiary designation will be frozen by the bank once they are notified of the death. Those funds cannot be accessed until you have Letters Testamentary. Once you do, present the Letters to the bank and they will release the funds — typically by issuing a cashier's check that you then deposit into the estate account.

Joint accounts with right of survivorship pass automatically to the surviving account holder. The survivor presents the death certificate and the account continues in their name.

Common Pitfalls to Avoid

Paying estate bills from your personal account and expecting reimbursement later. Even if heirs agree to reimburse you, commingled payments muddy the accounting, especially if the estate goes through any contested proceedings.

Using the deceased's account directly, even if you have their debit card. This is not legal authority. Banks can — and do — demand repayment of withdrawals made without proper court authorization. The consequences can include personal liability.

Waiting too long to open the account. Final salary checks, insurance refunds, and asset sale deposits will pile up with nowhere to go. Open the estate account within the first few weeks of receiving Letters.

Paying yourself as executor from the estate without court or beneficiary approval. Texas allows independent executors reasonable compensation, but the timing and amount should be documented and agreed to in advance.

After the Account Is Open

The estate account serves the estate through its entire administration. You use it to pay funeral expenses, outstanding debts (in the order required by Texas law), income taxes, property taxes, professional fees, and any other legitimate estate expenses. Once all liabilities are settled and the estate is ready to close, the remaining balance is distributed to the beneficiaries according to the will — or, if there is no will, according to Texas intestate succession law.

The Texas Estate Settlement Guide at /us/texas/estate-settlement/ covers the full sequence of steps — from obtaining Letters Testamentary and opening the estate account through final distribution — including the statutory creditor notification deadlines and the inventory requirements that Texas law imposes on executors within 90 days of qualification.

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