Short Answer

In North Carolina, the estate must have its own EIN for estate banking and tax reporting. You should not use the estate’s EIN to operate or manage a separate company; that company needs its own EIN and separate accounts. A personal representative may continue the decedent’s existing business to preserve value, but forming or funding a new company with estate assets typically requires beneficiary consent or a court order and strict separation of funds.

Understanding the Problem

You are the administrator of a North Carolina estate and need an EIN to open an estate bank account for unclaimed property with the State Treasurer. An uncle formed a new company during probate using estate assets, and there is confusion about whether you can use the estate’s EIN for that business. The question is whether North Carolina law allows you to use the estate’s EIN to manage assets inside that newly formed business.

Apply the Law

Under North Carolina probate law, the personal representative (administrator or executor) gathers estate assets, pays lawful claims, and distributes the rest. The estate is a separate legal taxpayer that uses its own EIN for bank accounts and fiduciary income tax filings. A personal representative can continue the decedent’s existing business when reasonably necessary to preserve value, but operating a newly formed entity with estate assets requires clear authority and strict segregation. The Clerk of Superior Court oversees inventories and accountings, and the personal representative can use estate proceedings to recover estate property held by others. Annual accounts are due on a statutory schedule.

Key Requirements

• Separate tax IDs and no commingling: Open an estate bank account using the estate’s EIN. Do not use the estate’s EIN for a separate LLC or corporation; that entity must obtain its own EIN and maintain separate books and accounts.
• Authority to operate a business: You may continue the decedent’s existing business only when reasonably necessary to preserve value. Starting or funding a new company with estate assets usually requires consent of all beneficiaries or a court order, and it must be in the estate’s best interest.
• Document transfers: Any transfer of estate assets into a business must be documented (e.g., bill of sale), listed on the estate inventory, and reported on accountings, with supporting vouchers.
• Clerk oversight and deadlines: If the estate remains open beyond one year, file an annual account by the 15th day of the fourth month after the estate’s fiscal year-end, and keep filing annually until final accounting is approved.
• Recovery tools: If someone formed a company using estate assets without proper authority, file an estate proceeding with the Clerk to examine that person and seek recovery or turnover of assets.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-13-3 (Powers of personal representative) – Allows continuation of a decedent’s business when necessary to preserve value.
• North Carolina Gen. Stat. § 28A-21-1 (Annual accounts) – Sets the timing for filing annual accounts if the estate remains open beyond one year.
• North Carolina Gen. Stat. § 28A-15-12 (Examination of persons in possession of estate property) – Lets the personal representative seek examination and recovery of estate assets held by others.

Analysis

Apply the Rule to the Facts: You should obtain an EIN for the estate and use it only for the estate’s bank account and any estate income, including unclaimed property collected from the North Carolina Department of State Treasurer. Do not use the estate’s EIN for the new company your uncle formed; that company must obtain its own EIN and maintain its own accounts. Before any estate assets move into that company, there must be proper authority and documentation; if you cannot get proof of a valid transfer, use an estate proceeding to demand records and, if necessary, recover assets.

Process & Timing

1. Who files: Administrator. Where: IRS (for the estate EIN), and the Clerk of Superior Court in the county of administration (for any estate proceeding). What: IRS Form SS‑4 to obtain the estate EIN; open an estate checking account; if needed, a verified petition under N.C.G.S. § 28A‑15‑12 to examine and recover estate property; file required estate accountings (AOC‑E‑506, Account). When: Obtain the estate EIN promptly after qualification to open the estate account; file annual accounts by the 15th day of the fourth month after the estate’s fiscal year end if the estate remains open.
2. Submit the estate’s unclaimed property claims to the State Treasurer using the estate’s EIN and Letters of Administration; request documents from the uncle showing any approved transfer of estate assets. If records are withheld or the transfer appears unauthorized, file the petition with the Clerk. County timelines vary, but examinations and orders typically follow after notice and a hearing.
3. With court guidance or beneficiary consent, either recover misapplied assets or properly document any authorized transfer. Keep business assets (company EIN, company account) separate from estate assets (estate EIN, estate account). File and seek approval of the estate’s annual and final accounts.

Exceptions & Pitfalls

• Life insurance with a named beneficiary is usually not an estate asset; do not redirect addresses or attempt to claim benefits unless the estate is the beneficiary.
• Using the estate’s EIN for a separate company can be treated as commingling and a breach of fiduciary duty; keep separate accounts and records.
• Continuing a business is limited to preserving the decedent’s existing business; forming or funding a new entity with estate assets generally requires consent of all beneficiaries or a court order.
• Unapproved transfers must be documented or reversed; if a third party controls estate assets, use an estate proceeding to compel records and recovery.

Talk to a Probate Attorney

If you’re dealing with estate assets and a business formed during probate, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at 919-341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.