Dec192025
Probate Q&A Series

Who obtains the tax ID numbers for the testamentary trust and any subtrusts, and at what stage of probate should those be issued? – North Carolina

Short Answer

In North Carolina, the fiduciary who will act as trustee typically obtains the federal tax ID number (EIN) for a testamentary trust and for any separate sub-trusts once the trust actually exists and needs to hold assets or receive taxable income. In most estates, that means the personal representative first qualifies with the Clerk of Superior Court, then the estate gets its own EIN for estate administration, and the trustee obtains a trust EIN laterwhen the personal representative is ready to fund the trust and open trust accounts. If the will creates multiple separate shares (sub-trusts) that will be administered as separate trusts, each separate trust may need its own EIN when it begins operating separately.

Understanding the Problem

In North Carolina probate, a will can create a testamentary trust that takes effect at death, but the trust usually does not start operating until assets move from the estate into the trust. The decision point is: when a will directs property to be held in a testamentary trust (sometimes split into multiple shares), who is responsible for getting the tax identification numbers and at what point in the estate administration process should those numbers be requested. The actors are usually the personal representative handling probate administration and the trustee who will manage trust assets after funding.

Apply the Law

North Carolina probate commonly involves two fiduciary roles with different tax-reporting needs: (1) the personal representative administers the estate after qualifying with the Clerk of Superior Court and (2) the trustee administers any testamentary trust after the estate transfers assets to the trust. In practice, an estate generally needs an EIN early because banks and payors should report post-death income under the estates taxpayer ID rather than the decedents Social Security number, and the estate may need to file fiduciary income tax returns. A testamentary trust (and any separate sub-trusts treated as separate taxpayers) generally needs its own EIN when it begins to hold assets, earn income, or open financial accounts as a trust.

Key Requirements

  • Identify the taxpayer entity: Determine whether the income and accounts belong to the probate estate, to a single testamentary trust, or to multiple separate trusts (separate shares) that will be administered separately.
  • Match the EIN to the fiduciary role: The personal representative typically obtains and uses the estate EIN during administration; the trustee typically obtains and uses the trust EIN for trust administration after funding.
  • Timing tied to banking and reporting needs: Obtain the estate EIN soon after qualification to open estate accounts and properly report income; obtain trust EIN(s) when the trust is ready to receive assets or open trust accounts.

What the Statutes Say

Analysis

Apply the Rule to the Facts: When there are no case-specific facts, the practical rule is driven by who will be receiving income and holding title to accounts at each phase. Early in probate, most assets and income are handled in the name of the estate, so the personal representative typically needs the estate EIN shortly after qualification to open estate accounts and ensure payors report income under the estate. Later, when distributions move into the testamentary trust (or multiple separate shares), the trustee typically obtains the trust EIN(s) so the trust can open accounts, receive income, and file fiduciary returns as needed.

Process & Timing

  1. Who files: The personal representative (often through counsel) typically requests the estate EIN; the trustee (often through counsel) typically requests the testamentary trust EIN (and separate EINs for separate sub-trusts if they will operate as separate trusts). Where: EINs are issued by the IRS (not the North Carolina Clerk). What: IRS Form SS-4 (or the IRS online EIN application) is commonly used; banks may also request IRS Form W-9 for an interest-bearing account. When: The estate EIN is usually obtained soon after the personal representative qualifies and before opening estate bank or brokerage accounts.
  2. Funding stage: After debts, expenses, and administration needs are addressed and the personal representative is ready to distribute to the testamentary trust, the trustee obtains the trust EIN and opens trust accounts in the trusts name. If the will calls for separate shares (for example, separate shares for children) and those shares will be administered separately as separate trusts, the trustee typically obtains a separate EIN for each share at the point each share becomes separately funded and administered.
  3. Ongoing administration: The estate uses the estate EIN for estate income reporting during administration. After funding, the trustee uses the trust EIN(s) for trust income reporting and trust administration, including receiving income, issuing beneficiary tax information when required, and filing fiduciary returns when applicable.

Exceptions & Pitfalls

  • Confusing the estate EIN with the trust EIN: Using the decedents Social Security number, or using the estate EIN for a trust after it is funded, can lead to incorrect income reporting and cleanup work later.
  • Multiple shares may mean multiple EINs: Some wills create a single trust with internal accounting shares; others create separate trusts (or require division) that operate as separate taxpayers. The trust instrument and administration plan drive whether one EIN or multiple EINs are appropriate.
  • Getting a trust EIN too early: If the trust will not be funded for a while, obtaining an EIN far in advance can create administrative hassle (mailing addresses, responsible party updates, and stray tax notices) before the trust has any activity.
  • Bank account setup timing: North Carolina practice commonly calls for opening an estate checking account immediately upon qualification; that step usually requires the personal representatives Letters and the estate EIN. Waiting on the EIN can delay bill payment and asset consolidation.

Conclusion

In North Carolina, the personal representative usually obtains the estates EIN soon after qualifying with the Clerk of Superior Court, because estate accounts and post-death income reporting typically start early in administration. The trustee generally obtains the EIN for the testamentary trust (and any separate sub-trusts) at the point the estate is ready to fund the trust and the trust needs its own accounts and income reporting. A practical next step is to apply for the estate EIN promptly after qualification so estate accounts can be opened without using the decedents Social Security number.

Talk to a Probate Attorney

If a will creates a testamentary trust (or multiple trust shares) and there is uncertainty about which tax ID numbers are needed and when, our firm has experienced attorneys who can help clarify the correct setup and timeline for estate and trust administration. 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.

Category: Probate Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.