How do I get a tax ID number for an estate and who is allowed to request it? – North Carolina

Short Answer

In North Carolina, an estate usually needs its own federal tax ID number (an EIN) once a personal representative is appointed and the estate needs to open an estate bank account or receive/report income. The personal representative (executor or administrator) is the proper person to request the EIN, and an attorney can often obtain it only with the personal representative’s authorization. Heirs and beneficiaries generally are not allowed to request an EIN just because they expect to inherit.

Understanding the Problem

In North Carolina probate, the question is often: when a person dies and an estate needs a tax ID number to open an estate checking account or handle income, who can request that number and how does it get obtained? The key decision point is whether someone has been appointed and qualified as the estate’s personal representative (executor under a will or administrator if there is no will), because that role controls who has authority to act for the estate.

Apply the Law

North Carolina estate administration is supervised through the Clerk of Superior Court acting as judge of probate. A personal representative becomes the estate’s authorized fiduciary only after qualification and the issuance of Letters (Letters Testamentary for an executor or Letters of Administration for an administrator). In practice, banks commonly require the Letters and the estate’s EIN before they will open an estate account, and the EIN is also used to report estate income under the estate’s name instead of the decedent’s Social Security number.

Key Requirements

• Personal representative authority: The estate should have a qualified personal representative with Letters before taking key financial steps such as opening estate accounts and moving estate funds.
• Proper applicant for the EIN: The personal representative is the person who should request the estate EIN; third parties (including attorneys) generally need written authorization from the personal representative.
• Correct use of the EIN: Use the estate EIN for estate bank accounts and for income that must be reported under the estate during administration, rather than using the decedent’s Social Security number.

What the Statutes Say

• N.C. Gen. Stat. § 7A-241 (Probate jurisdiction) – Places original jurisdiction over probate and estate administration in the superior court division, exercised by the Clerk of Superior Court as judge of probate.
• N.C. Gen. Stat. § 7A-103 (Authority of clerk) – Authorizes the clerk to grant letters testamentary and letters of administration as part of probate administration.

Analysis

Apply the Rule to the Facts: When there are no special facts provided, a common North Carolina scenario is that the estate needs to collect checks payable to the decedent and deposit them into a new estate bank account. That typically requires (1) a qualified personal representative with Letters and (2) an estate EIN. If someone is only an heir or named beneficiary and has not qualified as personal representative, that person usually cannot properly request the EIN or open accounts in the estate’s name.

Process & Timing

1. Who files: The personal representative (executor/administrator). Where: With the Internal Revenue Service (IRS) (the EIN is federal, not issued by the North Carolina Clerk of Superior Court). What: IRS Form SS-4 (Application for Employer Identification Number), often submitted online through the IRS EIN system. When: Typically after qualification as personal representative and before opening an estate bank account.
2. Bank/account setup: After obtaining the EIN, the personal representative can usually open an estate checking account. Banks commonly ask for a copy of the Letters and may request a completed IRS Form W-9 for the account.
3. Ongoing use: Use the estate EIN on interest-bearing or other income-producing estate assets so income is reported under the estate, and use the EIN on any required fiduciary income tax filings (a tax attorney or CPA can advise on filing obligations).

Exceptions & Pitfalls

• Trying to act without Letters: Banks and other institutions often will not accept an heir’s request to open an “estate account” without Letters, even if the heir has the will or death certificate.
• Using the decedent’s Social Security number: For estate accounts and post-death estate income, using the decedent’s SSN can create reporting problems and confusion about whose income it is.
• Attorney requests without authorization: An attorney can sometimes obtain the EIN faster, but the IRS generally requires proper authorization; the personal representative’s signature and third-party designee authorization are commonly needed.

Conclusion

In North Carolina, the estate EIN is a federal tax ID used to open estate bank accounts and to report income earned during administration under the estate’s name. The personal representative (executor or administrator) is the proper person to request the EIN, and others usually need the personal representative’s authorization to do it. The next step is to qualify as personal representative with the Clerk of Superior Court and then submit IRS Form SS-4 to obtain the EIN before opening an estate account.

Talk to a Probate Attorney

If you’re dealing with getting an estate opened and need an estate EIN so the personal representative can open an estate account and start administering assets, our firm has experienced attorneys who can help explain the steps, documents, 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.