Overview: Estate bank accounts and federal employer identification numbers (EIN)
When someone dies, the assets they leave often need to be collected, protected, and used to pay debts and distribute property to heirs. A common administrative step is opening a dedicated estate bank account. That account keeps estate funds separate from the personal accounts of the deceased and the personal representative (executor or administrator). For most New Mexico estates, banks will require a federal Employer Identification Number (EIN) for the estate rather than using the decedent’s Social Security number.
Detailed answer — step-by-step process under New Mexico law
1. Confirm who can act for the estate
Only a person with legal authority to administer the estate can open an estate account in the estate’s name. That authority usually comes from one of these sources:
- A will that names an executor and a court-issued document called “letters testamentary”;
- If there is no will, a court will appoint an administrator and issue “letters of administration.”
- In limited cases (small-estate procedures or certain transfer-by-affidavit rules) banks may accept other documents — but many banks insist on court-issued fiduciary papers first.
New Mexico uses the Uniform Probate Code framework for probate proceedings. For general guidance about New Mexico probate procedures and forms, see the New Mexico Courts self-help probate page: https://www.nmcourts.gov/self-help/probate/.
2. Determine whether you need an EIN for the estate
The IRS requires an EIN for an estate when a fiduciary administers the estate or the estate must file income tax returns, accepts estate income, or continues a business. The IRS explains when estates need an EIN: https://www.irs.gov/businesses/small-businesses-self-employed/do-estates-need-an-ein. In practice, banks commonly require an EIN for an estate account even if the estate’s only funds are cash from closing accounts or selling property.
3. Obtain the estate EIN from the IRS
To get an EIN for an estate you generally need:
- The name of the decedent;
- The name and taxpayer identification number (SSN or EIN) of the personal representative applying for the EIN;
- The decedent’s date of death;
- Mailing address and other contact details.
You can apply online (best for quick issuance) or by phone, fax, or mail. The IRS page for applying for an EIN explains methods and the online application: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online. When the IRS issues the EIN it will provide a confirmation (CP 575 or an online confirmation) that the bank will accept.
4. Get the court-issued fiduciary documents banks typically require
Most banks will ask to see either letters testamentary or letters of administration (or a comparable court document) before opening an estate account. Those documents are issued by the probate court after appointment of a personal representative. To begin that court process you file a probate petition in the appropriate New Mexico district court. The New Mexico Courts probate self-help resource lists common probate steps, forms, and contact information: https://www.nmcourts.gov/self-help/probate/.
5. Visit the bank with the required documents
When you go to the bank, bring:
- Certified copy of the decedent’s death certificate;
- Letters testamentary or letters of administration (or other court-issued fiduciary documentation);
- The estate’s EIN confirmation from the IRS;
- Your government-issued photo ID;
- If available, bank statements, a will, and a list of estate assets.
The bank will open an account titled for the estate (for example: “Estate of [Decedent Name], John Doe, Personal Representative, EIN XX-XXXXXXX”). Ask the bank how they want the title to read and whether they require any additional signature cards or account forms.
6. Use the estate account only for estate business
Deposit estate proceeds (sale proceeds, final paycheck, refunds) into the account. Pay estate liabilities (funeral bills, creditor claims, taxes, and probate costs) from that account. Preserve accurate records and retain receipts. New Mexico fiduciaries must follow duties of loyalty and accounting to heirs and beneficiaries; separating funds helps meet those duties. For general information about fiduciary duties and New Mexico probate, consult New Mexico Courts resources: https://www.nmcourts.gov/self-help/probate/.
7. Tax and reporting steps
The estate may need to file federal income tax returns for the decedent’s final year and for the estate as an entity (Form 1041) if the estate generates income. The EIN you obtained is what you will use on estate tax and income tax filings. See the IRS page on estates and trusts for tax filing details: https://www.irs.gov/businesses/small-businesses-self-employed/estates-and-trusts.
8. Small-estate exceptions and alternatives
New Mexico law provides simplified procedures for small estates or for transferring certain items without formal administration. Banks sometimes accept an affidavit or a small-estate affidavit for property transfers without a full probate, but acceptance varies by bank and by the asset type. Check with the probate court and the bank early. For procedural options and forms, see New Mexico Courts: https://www.nmcourts.gov/self-help/probate/.
Common bank requirements and practical tips
- Many banks will not open an estate account using just an heir’s ID or the decedent’s SSN; they want the court papers and the estate EIN.
- Ask the bank ahead of time for a list of required documents. Policies differ between banks and even between branches.
- If the decedent owned accounts jointly with right of survivorship, those funds may pass directly to the survivor and not require an estate account.
- Keep thorough records of deposits and disbursements from the estate account. Beneficiaries may ask for accounting later.
Helpful Hints
- Start with the probate court: obtain letters testamentary or administration before applying for an estate bank account if possible.
- Apply online for the estate EIN — it is usually the fastest method and you receive confirmation immediately when the applicant is in the United States. See: IRS EIN online.
- Bring certified copies of the death certificate; banks usually want an official copy, not a photocopy.
- Ask what the bank needs for account titling so the estate title matches the fiduciary documents and the EIN paperwork exactly.
- If you anticipate estate income (interest, dividends, rental income), set up an estate account promptly so income is easily tracked and reported under the estate EIN.
- Keep beneficiaries informed; clear records and communication reduce disputes later.
- If the estate is complex, contains significant assets, a business, or likely creditor disputes, consider consulting a probate attorney familiar with New Mexico law to avoid mistakes.
Where to get official forms and more information
New Mexico Courts — Probate self-help and local court information: https://www.nmcourts.gov/self-help/probate/
IRS — When an estate needs an EIN and how to apply: https://www.irs.gov/businesses/small-businesses-self-employed/do-estates-need-an-ein and https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online.
Short checklist before you visit the bank
- Letters testamentary or letters of administration from the New Mexico probate court (or bank-confirmed alternative).
- Estate EIN confirmation from the IRS.
- Certified death certificate(s).
- Your photo ID and contact information for the estate.
- List of estate assets and recent statements when available.
Disclaimer: This article provides general information about opening an estate bank account and obtaining a federal EIN in New Mexico. It is not legal advice and does not create an attorney-client relationship. Rules and procedures can vary by bank and may change. For advice about a specific situation, consult a licensed New Mexico probate attorney or the probate court.