Open Estate Checking Account

Estate funds — including money from account closures, property sales, refunds, or insurance proceeds payable to the estate — should flow through a dedicated estate checking account, along with estate expenses. Assets paid directly to a named beneficiary or surviving joint owner are not automatically estate funds. Using a personal account for estate transactions can create accounting problems and expose the executor to claims of mismanagement or self-dealing.

Step 1: Get an EIN

The estate needs its own federal tax identification number, called an Employer Identification Number (EIN). This is separate from the deceased's Social Security number and is used for banking, tax filing, and all financial transactions on behalf of the estate.

How to apply: Go to irs.gov and search for "EIN application." The online application (Form SS-4) takes about 10 minutes. The EIN is issued immediately at the end of the process — you'll see it on screen and receive a confirmation letter.

What you'll need:

• The deceased's full legal name, Social Security number, and date of death
• The executor's name, Social Security number, and address
• The estate's mailing address (typically the executor's home address)

Who can apply: The executor named in the will or the administrator appointed by the court. You do not need Letters Testamentary to apply for the EIN, which is helpful because the EIN application can be done in week one while the court processes the letters.

Canadian estates: A trust that needs a trust account number can apply through the CRA online or by submitting Form T3APP. The T3 return is filed later if required; it is not the application for the account number.

Step 2: Get Letters Testamentary

While the EIN is obtained instantly, most banks require Letters Testamentary (or Letters of Administration, if there's no will) before they'll open the account. This court-issued document proves you have legal authority to act on behalf of the estate.

If the letters haven't been issued yet, some banks will open the account with a certified copy of the will and a death certificate, then require the letters within 30 to 60 days. Ask the bank about their specific policy before making the trip.

Step 3: Choose a Bank

Pick a bank based on practical convenience, not prestige. The estate account will be open for the duration of estate settlement (typically six to eighteen months), and you'll be making deposits, writing checks, and keeping detailed records.

What to look for:

• No or low monthly maintenance fees (some banks waive fees for estate accounts)
• Online banking with check images and transaction export
• A branch near you for in-person transactions when needed
• The ability to issue checks in the estate's name

The deceased's bank is often the easiest choice. They already have the death certificate on file, may have existing relationships with the estate's accounts, and can sometimes handle internal transfers more efficiently.

What to avoid: Online-only banks that don't offer estate accounts, banks that charge per-check fees on high-volume accounts, and banks that require minimum balances the estate can't immediately fund.

Step 4: Open the Account

Bring to the bank:

• The EIN confirmation letter from the IRS
• Certified copies of Letters Testamentary (or Letters of Administration)
• A certified death certificate
• Your personal identification (driver's license or passport)
• The estate's mailing address

The account will be titled in the estate's name: "Estate of [Deceased's Full Legal Name]" with you listed as the executor or personal representative. Order checks — you'll need them for court filing fees, attorney retainers, and creditor payments that don't accept electronic transfer.

How to Use the Account

All funds payable to the estate go in: Life insurance or pension proceeds payable to the estate, account closures, property sale proceeds, tax refunds, and rental income from estate property.

All estate expenses go out: Funeral costs, court filing fees, attorney fees, accountant fees, property maintenance, utility bills, mortgage payments, creditor payments, and eventually beneficiary distributions.

Keep meticulous records. Every transaction should be categorized and documented. The estate may need to file a formal accounting with the probate court, and beneficiaries have the legal right to request a full accounting of how every dollar was received and spent.

Never deposit personal funds or pay personal expenses from this account. Commingling even once — using the estate account to pay for groceries because it's the card in your wallet — creates an accounting problem that's disproportionately expensive to clean up.

Common Mistakes

Opening the account too late. Some executors pay early estate expenses out of pocket and plan to reimburse themselves later. This creates messy recordkeeping and potential conflicts with beneficiaries who question the reimbursements. Open the account as soon as you have the EIN and letters.

Using the deceased's existing account. Even if the executor has access to a joint account or a POD account, estate transactions should flow through the dedicated estate account. Using the deceased's personal account blurs the line between pre-death and post-death finances.

Not keeping the account funded. Court filing fees, attorney retainers, and property maintenance costs can come due before estate assets are collected. If the estate lacks liquid funds, ask the bank or attorney about a documented, lawful way to cover the expenses; do not assume that joint-account or beneficiary-owned funds belong to the estate.

The First 30 Days After Loss guide covers the entire financial setup process — EIN application, bank account opening, asset inventory, and the debt priority hierarchy — with step-by-step instructions designed for first-time executors.