How do I obtain an estate EIN and open a dedicated estate bank account in North Carolina probate?

Detailed Answer

When you serve as a personal representative in North Carolina, you must separate estate funds from your own. Two critical early tasks are obtaining an Employer Identification Number (EIN) for the estate and opening a dedicated estate bank account. Below is a clear roadmap for each step under North Carolina law.

1. Obtain the Estate EIN

An EIN functions like a Social Security Number for the estate. You need it to file estate income tax returns and to open a bank account in the estate’s name.

1. Gather Required Information: You will need the decedent’s full name, Social Security Number, date of death and your contact information as personal representative.
2. Complete IRS Form SS-4: Go to the IRS website and fill out Form SS-4 online. Enter the legal name of the estate as “Estate of [Decedent’s Name],” and choose the reason for applying as “Probate.”
3. Submit Your Application: You can apply online for immediate issuance of the EIN or mail or fax the completed SS-4 to the IRS. Online applications at irs.gov receive the number instantly.
4. Record the EIN: Keep a copy of the IRS notice for your estate records. You will need this when you open the estate bank account and when you file federal estate or income tax returns.

2. Open a Dedicated Estate Bank Account

Under North Carolina law, a personal representative must deposit estate funds into a separate account. Putting money in your own account can lead to questions of self-dealing or commingling.

1. Obtain Certified Letters Testamentary or Letters of Administration: The clerk of superior court issues these letters. They prove your authority to act for the estate.
2. Gather Supporting Documents: Bring the following to your chosen bank:
   • Certified copies of your letters testamentary or letters of administration.
   • Estate EIN confirmation from the IRS.
   • A death certificate for the decedent.
3. Open the Account in the Estate’s Name: Use the legal name “Estate of [Decedent’s Name],” followed by the estate’s EIN. Ask the bank to designate it as the “estate checking account” or similar. This helps track incoming assets and expenses.
4. Comply with North Carolina Statutes: Deposit estate funds promptly. Under N.C.G.S. § 28A-14-17, you must keep estate money in trust and may invest it only as allowed by law. See N.C.G.S. § 28A-14-17.

Key Steps Checklist

• Request certified copies of letters testamentary or letters of administration from the clerk of superior court.
• Collect the decedent’s Social Security Number, death certificate, and your personal information.
• Apply for an EIN online via IRS Form SS-4 for immediate issuance.
• Visit a bank with your letters, EIN confirmation, and death certificate to open the account.
• Label the account clearly as the estate account and use it exclusively for estate transactions.
• Maintain records of all deposits and disbursements to satisfy your fiduciary duties.

Taking these steps ensures you meet the North Carolina requirements for handling estate assets. Properly separating and documenting estate funds protects you and the estate beneficiaries.

Ready to get started? Our experienced probate attorneys at Pierce Law Group guide you through every step. Contact us today by emailing intake@piercelaw.com or calling (919) 341-7055.