Detailed Answer
When a parent dies, you often need a separate bank account in the decedent’s estate name to collect and manage the deceased person’s assets, pay bills, and distribute funds under New York law. To open that account, banks typically require an Employer Identification Number (EIN) for the estate (issued by the IRS) plus proof of your authority to act for the estate (court-issued letters or another form of authorization). This section explains the legal and practical steps to obtain the EIN and to open an estate bank account in New York.
1) Determine whether formal administration (probate or administration) is required
In New York, if the deceased left a valid will, the will is usually presented to Surrogate’s Court for probate so the court can issue letters testamentary to the named executor. If there is no will, the court appoints an administrator and issues letters of administration. Those court-issued letters are the most widely accepted proof of authority to open an estate account. The Surrogate’s Court handles these proceedings. For general information on the Surrogate’s Court and its role, see the New York Courts Surrogate’s Court page: https://www.nycourts.gov/courts/surrogates/. You can also review the Surrogate’s Court Procedure Act via the New York Legislature site: https://www.nysenate.gov/legislation/laws/SCPA.
2) Obtain the estate’s EIN from the IRS
The estate needs an EIN so banks can report interest and other income to the IRS under the estate’s tax account rather than the decedent’s personal Social Security number. To get an EIN:
- Gather required information: legal name of the decedent, date of death, name and taxpayer identification number (SSN or ITIN) of the personal representative (executor/administrator), mailing address for the estate, and the reason for applying (estate).
- Apply online (fastest) using the IRS EIN application: IRS: Apply for an EIN Online. For applicants outside the U.S. or in special circumstances, the IRS also accepts Form SS-4 by phone, fax, or mail—follow instructions on the IRS site.
- The IRS will issue the EIN immediately when you use the online tool. Save the confirmation notice; banks will request it.
3) Get proof of authority to act for the estate
Most banks require one of the following before opening an estate account:
- Letters testamentary (if there is a will) or letters of administration (if there is no will), issued by the Surrogate’s Court.
- A certified copy of the court order appointing you as administrator or executor.
- In very small matters, some banks accept an affidavit of entitlement or an acquittance if state rules and the bank’s policies allow; check with the bank and Surrogate’s Court first.
To learn about letters and Surrogate’s Court procedures, see the Surrogate’s Court information: https://www.nycourts.gov/courts/surrogates/ and the SCPA overview: https://www.nysenate.gov/legislation/laws/SCPA.
4) Collect the documents banks will want
Common documents to bring to the bank:
- Certified copy of the death certificate (obtain through New York Vital Records): https://www.health.ny.gov/vital_records/requests/.
- Certified letters testamentary or letters of administration (from Surrogate’s Court).
- IRS EIN confirmation letter (CP 575 or the SS-4 confirmation from the online application).
- Your government-issued photo ID.
- Bank forms the institution requires for opening an estate account (the bank will provide).
5) Open the account and name it correctly
Ask the bank how they want the account titled. A clear and commonly used format is:
Estate of [Decedent’s full name], Deceased — [Your name], Executor (or Administrator)
Some banks require additional wording. Confirm whether the estate account will pay fees, taxes, funeral expenses, and creditor claims directly. Keep estate funds separate from your personal accounts. Mixing funds (commingling) can create liability and complicate administration.
6) Use the account properly during administration
Use the estate account to collect proceeds (e.g., sale of property, remaining bank accounts, investment income), pay valid estate debts and funeral expenses, and distribute inheritances as approved by the will or law. Keep clear records and retain copies of checks, bank statements, and receipts for accounting to the court and beneficiaries. If you have questions about paying claims or distributions, consult the Surrogate’s Court rules or a New York attorney.
7) Special situations to watch for
- If the estate is small, a bank might allow pay-on-death releases or accept an affidavit rather than requiring formal letters. Bank policies and the court’s small estate procedures differ—confirm with both the bank and Surrogate’s Court.
- If the decedent owned jointly-held accounts, life insurance with designated beneficiaries, or retirement accounts, those assets may pass outside probate. You may not need an estate account for those items, but you may need documentation to transfer them.
- If a financial institution refuses to accept the EIN or letters, ask for their written policy and consider contacting a different bank or seeking a court order clarifying your authority.
Relevant New York authority
The New York Surrogate’s Court governs probate and issuance of letters (see the Surrogate’s Court pages): https://www.nycourts.gov/courts/surrogates/. For statutory authority and procedure references, consult the Surrogate’s Court Procedure Act (SCPA) through the New York Legislature site: https://www.nysenate.gov/legislation/laws/SCPA. For EIN issuance and IRS procedures, see the IRS EIN portal: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online. For vital records and death certificates in New York, see: https://www.health.ny.gov/vital_records/requests/.
Bottom line: Obtain an estate EIN from the IRS, secure proof of your authority from Surrogate’s Court (letters testamentary or administration), gather the death certificate and other documents, then present those to the bank to open an estate account titled clearly for the estate. Bank practices vary, so contact the bank early to confirm specific requirements.
Disclaimer: This information is educational only and not legal advice. It does not create an attorney-client relationship. For legal advice tailored to your situation, consult a licensed New York attorney or contact the Surrogate’s Court in the county where the decedent lived.
Helpful Hints
- Call the bank first. Ask for the exact list of documents they require to open an estate account.
- Request several certified copies of the death certificate from New York Vital Records; banks and other institutions often require certified copies.
- Apply for the EIN online via the IRS site for immediate issuance. Save the EIN confirmation email or letter; banks want to see it.
- Keep estate funds separate. Never mix estate money with your personal accounts to avoid claims of commingling.
- Maintain detailed records of every deposit, payment, and distribution. You will need these for final accounting to beneficiaries or the court.
- If the estate assets are modest, ask the Surrogate’s Court clerk about simplified or small estate options before filing for full administration.
- If a bank refuses to accept court letters or an EIN, ask for a written explanation and consider another bank or a court order to compel compliance.
- Consider consulting a New York probate attorney if the estate is complicated, has disputed claims, or if you expect creditor disputes or beneficiary challenges.