Dealing with an estate after someone passes away is already emotionally draining. Add in the paperwork, the IRS requirements, and suddenly you’re drowning in acronyms. One of the first things you’ll need to tackle is getting a tax ID for an estate—and yes, it’s as important as it sounds. Whether you’re an executor, administrator, or beneficiary, understanding how to obtain and use an estate tax ID will save you headaches, potential penalties, and thousands in unnecessary taxes down the road. Let’s break this down in plain English.
What Is an Estate Tax ID?
An estate tax ID is officially called an Employer Identification Number (EIN), even though estates don’t employ anyone. Think of it like a Social Security number, but for the estate itself. It’s a unique nine-digit number issued by the IRS that identifies your estate as a separate tax-filing entity.
Here’s the key distinction: while the deceased person had their own Social Security number during life, the estate becomes its own “person” in the eyes of the IRS once probate begins. That’s why it needs its own tax ID. This number is used to file estate income tax returns, open bank accounts in the estate’s name, and report income earned by the estate during administration.
The IRS issues EINs through the IRS’s online EIN application system, and you can get one immediately—literally within minutes—if you apply online.
Why You Need a Tax ID for an Estate
Let’s be real: the IRS doesn’t require an estate tax ID just to make your life harder. There are solid reasons.
- Separate Tax Filing Identity: The estate will likely earn income—interest on bank accounts, dividends from investments, rental income from property. All that income needs to be reported somewhere. The tax ID for an estate allows you to file Form 1041 (U.S. Income Tax Return for Estates and Trusts) in the estate’s name, separate from the deceased’s final return.
- Bank Account Separation: You can’t just dump estate assets into your personal bank account (even if you’re the executor). Banks require an EIN to open an account in the estate’s name. This creates a clear paper trail and protects you personally from liability.
- Creditor and Beneficiary Protection: Using an estate EIN keeps the estate’s finances separate from your personal finances. If someone sues the estate or creditors come calling, they’re going after the estate’s assets, not yours.
- IRS Compliance: If the estate earns more than $600 in income during the tax year, you’re required to file Form 1041. Without an EIN, you can’t file this return properly.
- Vendor and Contractor Payments: When you pay contractors, accountants, or other vendors for estate-related work, they may ask for the estate’s EIN to issue a 1099 form.
Pro Tip: Get your estate EIN early—even before you open a bank account. It’s free and takes minutes online. Waiting until the last minute often leads to missed deadlines and filing penalties.
If you haven’t yet, check out our guide on what is meant by tax deducted at source to understand how the IRS tracks income across different entities.
How to Apply for an Estate Tax ID (EIN)
The process is straightforward, and you have options depending on your timeline.
Option 1: Apply Online (Fastest)
- Go to IRS.gov’s EIN application page.
- Select “Apply Online Now.”
- You’ll answer questions about the estate, including:
- The name of the estate (usually “[Deceased Name] Estate”)
- The state where the estate is being administered
- The reason for the EIN (select “Estate of a Deceased Individual”)
- The date the person passed away
- Your name and title (executor, administrator, etc.)
- Submit your application. You’ll receive your EIN immediately on screen and via email.
Option 2: Apply by Mail or Fax
If you can’t apply online, you can use Form SS-4 (Application for Employer Identification Number). Mail it to the IRS service center for your state, or fax it. Processing takes 2–4 weeks by mail, 1–2 weeks by fax. Download the form from IRS.gov.
Option 3: Call the IRS
You can call the IRS Business & Specialty Tax Line at 1-800-829-4933 to apply by phone. They’ll issue your EIN over the phone, but you’ll receive official confirmation by mail within 2 weeks.
What You’ll Need to Have Ready
- The deceased person’s full legal name and date of death
- The estate’s jurisdiction (state where probate is being handled)
- Your name, title, and Social Security number or ITIN (as the person applying)
- The mailing address for the estate
- A phone number where you can be reached
Warning: Don’t make up an estate name. The IRS expects it to be something like “Estate of John Smith” or “John Smith Estate.” Using a nickname or shortened version can cause matching problems down the road when you file returns.
Timeline and Deadlines
Timing matters here. While there’s no strict deadline to apply for an estate EIN, there are consequences if you delay.
- Apply ASAP after death: Ideally within the first 30 days. This gives you time to open a bank account and begin managing the estate’s finances properly.
- Before opening a bank account: You’ll need the EIN to open an estate bank account. Banks won’t do it without one.
- Before year-end (if income is expected): If the estate will earn income in the current tax year, get the EIN before December 31st so you can properly file Form 1041 by April 15th of the following year (or October 15th if you file an extension).
- Within 60 days of death (for some states): Some states have their own probate rules requiring notification of the IRS within a certain timeframe. Check with your probate court or state tax authority.
Our article on tax strategist services can help if you’re unsure about timing in your specific situation.
Using Your Estate EIN: Bank Accounts and Filings
Once you have your tax ID for an estate, here’s how you actually use it.
Opening an Estate Bank Account
Take your EIN letter from the IRS and the death certificate to your bank. You’ll open an account in the estate’s name (e.g., “Estate of Jane Doe, EIN 12-3456789”). This account is where all estate assets flow and where bills are paid. It’s separate from your personal checking account—and that separation is legally critical.
Filing Form 1041
If the estate earns more than $600 in income during the tax year, you must file Form 1041 (U.S. Income Tax Return for Estates and Trusts) using the estate’s EIN. This form reports:
- Interest income from savings accounts or CDs
- Dividend income from stocks and mutual funds
- Rental income from real estate
- Capital gains from sales of assets
- Other income earned during administration
The estate itself pays tax on income that isn’t distributed to beneficiaries. Income that’s distributed to beneficiaries is reported on Form K-1, which you give to each beneficiary to include on their personal return.
Reporting Payments to Vendors
If you pay an accountant, attorney, or other professional more than $600 for estate-related work, you’ll issue them a Form 1099-NEC using the estate’s EIN. This is reported to the IRS and helps document estate expenses.
Learn more about how income is tracked and reported in our guide to RITA tax systems, which shares similar reporting mechanics.
Common Mistakes to Avoid
I’ve seen executors make these errors repeatedly. Don’t be one of them.
Mistake #1: Using the Deceased’s Social Security Number Instead of an EIN
This is tempting but wrong. The deceased’s SSN is only used on their final individual tax return (Form 1040). The estate is a separate entity and needs its own EIN. Using the wrong number will cause the IRS to reject your Form 1041 and delay everything.
Mistake #2: Mixing Personal and Estate Funds
Some executors think, “I’ll just deposit the estate money into my account temporarily.” Don’t. It muddies the paper trail, creates tax confusion, and can make you personally liable if something goes wrong. Open the estate bank account first.
Mistake #3: Forgetting to Use the EIN on All Estate Documents
Every check, investment account, and vendor payment should reference the estate’s EIN. This creates a clear audit trail and protects you if questions arise later.
Mistake #4: Not Keeping the EIN Letter
The IRS sends you a letter confirming your EIN. Keep multiple copies. You’ll need it to open accounts, file returns, and prove the EIN exists if there are any disputes.
Mistake #5: Applying for Multiple EINs
Some executors accidentally apply for more than one EIN for the same estate. The IRS will flag this as suspicious activity. Apply once, get one EIN, and use it consistently.
Pro Tip: Create a simple spreadsheet documenting the EIN, the date it was issued, the date the person passed away, and where you’ve used it (bank accounts, Form 1041, etc.). This becomes your audit-proof record.
Tax Implications for Estate Income
Here’s where the tax ID for an estate becomes more than just a number—it directly affects how much tax the estate owes.
Income Tax on Estate Earnings
Estates are taxed on income they earn during administration. Unlike individuals, estates have a much lower tax bracket threshold. In 2024, an estate owes federal income tax on income above roughly $1,300 (the standard deduction for estates). Compare that to individuals, who don’t owe federal tax until income exceeds $14,600 (single) or $29,200 (married filing jointly). Estates hit the top tax bracket (37%) at just $15,000 of income.
This is why it’s often smart to distribute income to beneficiaries rather than let it accumulate in the estate. When you distribute income to beneficiaries, they report it on their personal returns (usually at lower tax rates), and the estate gets a deduction.
Estate Tax (If Applicable)
This is different from income tax. If the estate’s total value exceeds the federal estate tax exemption ($13.61 million in 2024, but set to drop to roughly $7 million in 2026), the estate may owe estate tax. This is a separate calculation and is reported on Form 706 (U.S. Estate Tax Return). You still need the EIN to file Form 706.
State Taxes
Some states have their own estate or inheritance taxes. Your state’s tax authority may also require the estate’s EIN for state-level filings. Check with your probate attorney or state tax department.
For more on how different tax systems work, review our article on ad valorem tax, which demonstrates how different jurisdictions assess tax obligations.
Frequently Asked Questions
Do all estates need a tax ID?
– Not necessarily. If the estate has no income and you’re just distributing assets to beneficiaries, you might not need one. However, it’s almost always safer to get one anyway. It costs nothing and provides legal protection. If there’s any chance the estate will earn interest, dividends, or other income, you definitely need one.
How long does an estate EIN last?
– An EIN lasts as long as the estate exists. Once the estate is fully settled and closed (usually 12–36 months after death), you notify the IRS and the EIN becomes inactive. You don’t renew it annually like a business license.
Can I use the estate EIN before the will is probated?
– Yes. You can apply for an EIN even before probate officially begins. This is actually recommended so you can open a bank account and manage assets properly from day one.
What if I lose the EIN letter from the IRS?
– You can call the IRS at 1-800-829-4933 and request a copy. Have the estate’s name, your name, and the approximate date you applied ready. They can reissue it or confirm the number over the phone.
Is there a fee to get an estate EIN?
– No. The IRS charges nothing for an EIN, whether you apply online, by mail, by fax, or by phone. If someone charges you a fee, they’re scamming you.
What if the estate earns less than $600 in income?
– You don’t have to file Form 1041 if the estate earns less than $600 in income. However, you may still want to keep the EIN for the bank account and to document that the estate was properly managed. Check with a tax professional for your specific situation.
Can I change the estate’s EIN?
– No. Once issued, an EIN is permanent for that estate. You can’t change it, and you shouldn’t need to. If you made a mistake on the application, contact the IRS to correct it, but the EIN itself stays the same.
Do I need a separate EIN if the estate becomes a trust?
– If assets are transferred to a trust after the estate closes, the trust may need its own EIN. This is a separate process. Consult with your probate attorney or tax professional about whether your situation requires it.
What happens to the EIN after the estate is closed?
– Once the estate is fully distributed and closed, you file a final Form 1041 and notify the IRS. The EIN becomes inactive but remains on record. You don’t need to do anything else with it.
Getting a tax ID for an estate is one of the first steps in proper estate administration, and it’s one of the easiest to get right. Apply online, get your number in minutes, open a bank account, and file your returns on time. That’s it. The emotional weight of handling someone’s affairs doesn’t get lighter, but at least the paperwork won’t make it worse. And if you’re ever unsure about your obligations, consult with a tax professional or probate attorney—it’s worth the peace of mind.
