Detailed Answer
Short summary: In New Hampshire, you normally need court-appointed authority (letters testamentary or letters of administration) or an equivalent recognized by the bank before opening an estate bank account. After appointment, you obtain an Employer Identification Number (EIN) for the estate from the IRS and present the bank with the EIN confirmation, certified court papers, and the decedent’s death certificate. This article explains the usual steps, documentation, and tax considerations.
1) Determine whether probate administration is required
First, determine whether the estate must go through probate in the New Hampshire Probate Court where your parent lived. If the decedent left a valid will, the named executor (personal representative) typically petitions the probate court for appointment. If there is no will, an interested person (usually a close relative) petitions to be appointed administrator. The New Hampshire Probate Court explains procedures and has the necessary forms: New Hampshire Judicial Branch – Probate Division. For a full set of state statutes and rules related to probate and estate administration, see the New Hampshire RSA index: New Hampshire Revised Statutes Annotated (RSA) index.
2) Obtain letters appointing a personal representative
You generally cannot open an estate account in the decedent’s name without documentary proof that you have authority to act for the estate. The probate court issues “letters testamentary” (if there is a will and an executor) or “letters of administration” (if there is no will). Banks usually require a certified copy of those letters. File the petition with the local probate court and follow local procedures listed on the Probate Division site above and in applicable RSA chapters referenced on the courts’ site.
3) Apply for an EIN for the estate with the IRS
Once you have or while you are awaiting court appointment, you should get an EIN for the estate. The estate’s EIN functions like a taxpayer ID for the estate (similar to a business EIN) and is generally required when the estate will have ongoing income, must file Form 1041 (U.S. Income Tax Return for Estates and Trusts), or when banks insist on separating estate funds from personal accounts.
How to apply: complete IRS Form SS-4. The IRS offers online EIN application (for applicants with a U.S. taxpayer identification number): Apply for an EIN (IRS). If you cannot complete the online application, you can mail or fax Form SS-4; see the form and instructions here: Form SS-4 (IRS). For estate-related tax guidance, see the IRS estate tax and fiduciary income tax pages: Estate Tax (IRS) and Form 1041 (IRS).
How to name the EIN: use the estate name format banks accept (for example, “Estate of [Decedent’s Full Name]”) and indicate your capacity (“by [Your Name], Personal Representative”). On the SS-4 you’ll list the personal representative’s name and contact information as the responsible party.
4) Gather documents banks typically require
- Certified copy of the death certificate.
- Certified letters testamentary or letters of administration from the New Hampshire Probate Court (original or certified copy as the bank requires). See probate forms: Probate Forms (NH Judicial Branch).
- EIN confirmation from the IRS (CP 575 letter) or a printed SS-4 confirmation. If you applied online, save the online confirmation.
- Your government-issued photo ID.
- Bank may request the will, a court order, or a copy of the petition depending on circumstances.
Each bank sets its own policies. Call the branch first and ask which documents they require, whether they accept certified copies, and whether they require the PR’s signature card or a corporate-type resolution.
5) Open the estate bank account
When you open the account, instruct the bank to title it in the estate name (for example, “Estate of Jane Doe, by John Smith, Personal Representative”). Use the estate EIN for tax reporting, not the decedent’s Social Security number, once the estate EIN is obtained. Keep estate funds separate from any personal accounts. Deposit only estate assets into that account and pay estate expenses and creditors from it.
6) Tax and accounting considerations
If the estate generates income (for example, interest, dividends, rental income), the estate may need to file Form 1041 and issue Schedule K-1s to beneficiaries. You also must file the decedent’s final individual income tax return (Form 1040) for the year of death. Keep careful records of receipts, bills paid, distributions to beneficiaries, and any creditor claims. See IRS guidance for fiduciaries: Estate Tax and Fiduciary Instructions (IRS) and Form 1041 (IRS).
7) If the estate is small or assets pass outside probate
Some assets may transfer outside probate: joint accounts with right of survivorship, accounts with payable-on-death (POD) designations, life insurance, and retirement accounts with designated beneficiaries pass directly to the named survivor or beneficiary. New Hampshire may also have summary or small-estate procedures that let certain assets be collected without full administration. Check the Probate Division resources or consult an attorney to determine whether you can avoid formal administration for small assets: NH Probate Division.
8) When to consult an attorney
Consult an attorney when the estate is complex, when there are disputes among heirs, when assets are large, or when tax issues are uncertain. An attorney can help with probate filings, creditor claims, tax returns, and final distribution plans. This article provides general guidance but does not replace professional legal advice.
Relevant New Hampshire resources
- New Hampshire Judicial Branch – Probate Division: https://www.courts.state.nh.us/probate/
- New Hampshire Probate Forms: https://www.courts.state.nh.us/probate/forms.htm
- New Hampshire RSA index (state statutes): https://www.gencourt.state.nh.us/rsa/html/indexes/default.html
- IRS — Apply for an EIN: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
- IRS Form SS-4 and instructions: https://www.irs.gov/forms-pubs/about-form-ss-4
Disclaimer
This information is educational only and does not constitute legal advice. Laws and court procedures change. For legal advice about a specific estate in New Hampshire, consult a licensed New Hampshire attorney or contact the New Hampshire Probate Court.
Helpful Hints
- Call the bank first. Different banks accept different proof (some accept photocopies; many insist on certified copies).
- Ask the probate court clerk what certified documents the bank will likely accept and how long certified copies take to issue.
- Apply for the EIN after you file for appointment, and include the personal representative as the responsible party on Form SS-4.
- Keep estate funds separate. Never co-mingle estate funds with your personal accounts.
- Keep careful records of all deposits, disbursements, and communications with creditors and beneficiaries—these records are essential for final accounting.
- If you expect the estate to receive ongoing income (rent, investment income), obtain the EIN promptly so you can report and pay taxes correctly.
- If the estate is small or all assets pass by beneficiary designation or joint ownership, confirm with the probate court whether formal administration is required before filing for letters.
- When in doubt, consult a New Hampshire probate attorney. Even a short consultation can clarify whether you need to open an estate account and how to proceed.