Do I need to notify the IRS when the estate’s administrator changes during probate? – North Carolina

Short Answer

Yes—when a North Carolina probate estate already has an EIN and the court-appointed administrator (personal representative) changes, the IRS should be notified so IRS records show the correct fiduciary/responsible party for the estate. In most cases, the EIN stays the same, but the IRS needs updated fiduciary contact information to send tax notices to the right person. A common way to do this is filing IRS Form 56 (Notice Concerning Fiduciary Relationship) for the newly appointed personal representative.

Understanding the Problem

In a North Carolina probate estate, an administrator (also called a personal representative) may change after the estate already has an EIN. The key question is whether the IRS must be told about the new court-appointed administrator so the estate’s IRS records reflect the correct person in charge, without applying for a new EIN. This typically comes up when the originally appointed administrator dies and the Clerk of Superior Court appoints a successor to finish the probate administration.

Apply the Law

Under North Carolina practice, the personal representative is the fiduciary responsible for handling estate administration, including tax-related tasks that use the estate’s EIN (such as estate bank accounts and fiduciary income tax filings). When the fiduciary changes, the practical risk is that IRS notices and deadlines can go to the wrong address or person unless the IRS is updated. A widely used method is to notify the IRS of the new fiduciary relationship and mailing address using IRS Form 56. This does not change the estate’s EIN; it updates who the IRS recognizes as the fiduciary contact for the estate.

Key Requirements

Same estate, same EIN: If the probate estate already has an EIN, a change in administrator usually requires updating IRS records, not obtaining a new EIN.
New fiduciary authority: The new administrator should have proof of appointment from the North Carolina Clerk of Superior Court (commonly issued as Letters of Administration or Letters Testamentary, depending on the situation).
Clear IRS notice information: The IRS update should identify the estate, the existing EIN, and the new administrator’s name and mailing address so IRS correspondence goes to the right fiduciary.

What the Statutes Say

N.C. Gen. Stat. Chapter 28A (Administration of Decedents’ Estates) – North Carolina’s probate administration framework, including the role of the personal representative under the supervision of the Clerk of Superior Court.

Analysis

Apply the Rule to the Facts: The estate already has an EIN, and the originally appointed administrator died. A new administrator has been appointed, so the estate’s EIN should continue to be used for estate accounts and any estate income tax filings, but the IRS should be updated to show the new fiduciary contact. Filing IRS Form 56 for the new administrator helps reduce the risk that IRS notices go to the deceased administrator’s address or otherwise fail to reach the person now responsible for meeting IRS deadlines.

For example, if an IRS notice about a missing fiduciary return is mailed to the prior administrator’s last known address, the estate can lose time to respond even though the EIN is correct. Updating the fiduciary contact information helps keep IRS communications aligned with the current court-appointed administrator.

Process & Timing

Who files: The newly appointed North Carolina administrator (personal representative), or someone authorized to act for the administrator. Where: With the IRS (not the North Carolina court). What: Commonly, IRS Form 56 (Notice Concerning Fiduciary Relationship) to notify the IRS of the new fiduciary and address; keep the estate’s EIN the same. When: As soon as practical after the new administrator qualifies and receives appointment documents from the Clerk of Superior Court.
Coordinate with probate records: Keep the estate’s appointment paperwork (Letters) available in case a bank, payer, or the IRS requests proof that the new administrator has authority to act for the estate.
Confirm tax mail routing: Use the updated fiduciary information consistently on any estate-related federal filings that use the EIN so IRS records and returns match the new administrator’s name and address.

Exceptions & Pitfalls

Assuming the EIN must change: A new administrator typically does not mean a new EIN. Changing the EIN unnecessarily can create mismatched reporting for banks and payers already using the estate’s EIN.
Mail going to the wrong place: If the IRS still has the deceased administrator’s address, time-sensitive IRS letters may not reach the new administrator in time to respond.
Authority gaps: Banks and other institutions often require current Letters showing the new administrator’s authority before they will discuss accounts or accept instructions, even if the EIN is unchanged.

Conclusion

In North Carolina, when a probate estate already has an EIN and the administrator changes, the EIN usually stays the same, but the IRS should be notified so the correct fiduciary is listed for IRS communications. A common next step is for the newly appointed administrator to file IRS Form 56 to update the fiduciary relationship and mailing address for the estate’s EIN. This should be done promptly after the new administrator qualifies with the Clerk of Superior Court.

Talk to a Probate Attorney

If an estate administrator changed during a North Carolina probate and IRS records need to be updated without changing the estate’s EIN, our firm has experienced attorneys who can help explain the steps, paperwork, and timing. 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.