How to Apply for and Use an Estate EIN in a North Carolina Probate Case
Detailed Answer
When someone passes away, the personal representative (formerly called executor) of the estate must manage financial affairs on behalf of heirs and creditors. One crucial step is obtaining an Employer Identification Number (EIN) for the estate. The estate EIN functions much like a Social Security number. It lets the estate open bank accounts, file federal tax returns, and report income or gains generated during probate.
1. Appointment of Personal Representative
Before you can apply for an estate EIN, the clerk of superior court must appoint you as personal representative and issue Letters Testamentary or Letters of Administration. Under G.S. Chapter 28A, you gain authority to act on behalf of the estate only after receiving these letters.
2. Completing IRS Form SS-4
To obtain the estate EIN, complete IRS Form SS-4, “Application for Employer Identification Number.” You may apply:
- Online at the IRS EIN application page.
- By fax or U.S. mail using the fillable PDF on the IRS website. Fax numbers and mailing addresses appear in the Form SS-4 instructions.
When filling out the form, use your name and personal representative title in Item 7, then list the decedent’s name and date of death in Item 10. Enter the estate’s mailing address in Item 4.
3. Opening an Estate Bank Account
Once you receive the EIN (often immediately when you apply online), open a bank account in the estate’s name. The bank will require certified Letters Testamentary and the EIN. Keeping estate funds separate from your personal accounts helps maintain accurate records and protects your personal liability.
4. Filing Federal Fiduciary Tax Returns
Under federal law, most estates that earn over $600 in gross income during the tax year must file Form 1041, “U.S. Income Tax Return for Estates and Trusts.” The EIN must appear on the return. File annual fiduciary returns and pay any tax due under IRS instructions for Form 1041. If the estate disposes of real estate, stocks, or other assets, the EIN also helps report gains or losses.
5. No North Carolina Estate or Inheritance Tax
North Carolina does not impose a state-level estate or inheritance tax. You do not need a separate number or return here, but you should still use the federal EIN when reporting income from estate assets to the federal government. For reference, see G.S. Chapter 105 (state tax code).
Key Points to Remember
- Obtain Letters Testamentary or Letters of Administration before applying for an EIN (G.S. Chapter 28A).
- Use IRS Form SS-4 to apply online or by mail/fax.
- Open a separate bank account in the estate’s name using the EIN.
- File federal fiduciary returns (Form 1041) if the estate earns over $600 annually.
- Track all estate income, gains and expenses under the estate EIN.
- No North Carolina estate or inheritance tax applies; handle only federal filings.
Contact Pierce Law Group
Applying for and using an estate EIN involves several steps. Doing it correctly protects you as personal representative and ensures compliance with federal and state rules. Pierce Law Group’s attorneys have years of experience guiding families through North Carolina probate. If you need help or have questions, email us at intake@piercelaw.com or call us at (919) 341-7055. We stand ready to assist you through every phase of estate administration.
