Detailed Answer
When someone dies, assets that were in the decedent’s name often must be collected, managed, and distributed by the person appointed to handle the estate. Many banks require an estate-specific bank account so the personal representative (also called an executor or administrator) can collect income, pay bills, and distribute funds. In Tennessee this generally means three things happen first:
- The person who will manage the estate is officially appointed by the probate court (or is authorized under an available small-estate process).
- The estate receives its own Employer Identification Number (EIN) from the IRS (an estate EIN is used instead of the decedent’s Social Security number for estate banking and tax reporting).
- The personal representative presents proof of appointment and the estate EIN to the bank and opens an account titled in the name of the estate.
Step-by-step: How to set up an estate bank account in Tennessee
- Identify whether probate or a simplified procedure is required. If the only assets are payable-on-death (POD) accounts, joint accounts with right of survivorship, or properly titled beneficiary assets, you may not need to open an estate account or start full probate. For other assets, you usually must open a probate estate. The Tennessee Administrative Office of the Courts has basic guidance about administering estates: https://www.tncourts.gov/programs/self-help/estates.
- Obtain a certified copy of the death certificate. Banks and the IRS will ask for an official death certificate. The funeral home or the health department can usually provide certified copies.
- Get letters testamentary or letters of administration from the probate court. To act as personal representative you normally must be appointed by the local probate court. The court issues letters (sometimes called letters testamentary or letters of administration) that prove your authority to handle estate matters. Contact the probate court in the county where the decedent lived for the exact filing steps and forms. Tennessee probate self-help resources are at: https://www.tncourts.gov/programs/self-help/estates. For the full text of the Tennessee probate statutes, consult the Tennessee Code via the General Assembly website: https://www.capitol.tn.gov/.
- Apply for an EIN for the estate from the IRS. Once you are (or are about to be) the personal representative, you should apply for an estate EIN. The IRS provides online and paper options to obtain an EIN. Use the estate name (for example, “Estate of [Decedent Name], by [Your Name], Personal Representative”). The IRS EIN application page is: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online. If you prefer to apply by mail or fax, complete Form SS-4 following the IRS instructions on that page.
- Bring required documents to the bank. Banks differ in exact requirements, but the typical items needed to open an estate account are:
- Certified death certificate.
- Estate EIN.
- Court-issued letters testamentary or letters of administration (or the small-estate affidavit if the county allows it and the estate qualifies).
- Your personal identification (driver’s license or passport).
Call the bank in advance to confirm which documents they will accept and how the account should be titled. Some banks will let you open a temporary account for immediate needs and convert it to a full estate account once you present the court letters and EIN.
- Title the account correctly. A common account title looks like: “Estate of [Full Name of Decedent], [Your Name], Personal Representative” followed by the estate EIN. Banks vary in format; follow their instructions. Using the estate EIN (not the decedent’s SSN) prevents mixing the decedent’s tax matters with estate tax and reporting obligations.
- Use the account only for estate transactions. Deposit assets that belong to the estate and pay estate expenses and debts from this account. Keep detailed records and bank statements for accounting to beneficiaries and for the probate court.
Common bank requirements and practical tips
- Some banks will accept a probate court filing receipt while you await issuance of letters; ask what temporary steps they allow.
- If the decedent had joint accounts, those accounts may pass automatically to the surviving joint owner and may not become estate property.
- POD (payable-on-death) and beneficiary designations usually override probate; those accounts typically transfer directly to named beneficiaries.
- Be prepared: banks often require the original court letters and certified death certificate rather than copies.
Tennessee-specific notes
Tennessee handles appointment of personal representatives and probate under the Tennessee Probate Code (Title 30). For practical information, forms, and local court contacts, start with the Tennessee Administrative Office of the Courts: https://www.tncourts.gov/programs/self-help/estates. If you need the statutory provisions, the Tennessee Code is available through the Tennessee General Assembly website: https://www.capitol.tn.gov/. Your county probate court clerk can also explain local filing rules and any simplified procedures for small estates.
Tax considerations
Use the estate EIN for estate tax or income tax filings the estate may need to make. Tennessee currently does not impose a state-level estate tax in the way some states do; federal estate tax rules still apply in large estates. For specific federal tax filing rules and EIN application, see the IRS: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online. Consider getting tax help if the estate earns income, must file an estate income tax return, or may be large enough to implicate federal estate tax.
When you might not need an estate account
- If assets transfer by beneficiary designation or survivorship, they usually pass outside probate to the named person(s).
- Some banks allow the surviving joint owner limited access without probate.
- Small estate procedures (available in many Tennessee counties) may allow collection of funds without full administration. Ask the probate court about local small-estate rules.
When to consult an attorney
Consider hiring a probate attorney if the estate is complex, there are disputes among heirs, the estate has substantial debts or tax issues, or you are unsure how to proceed with probate or small-estate procedures. An attorney can help you obtain letters from the court, advise you about tax filing, and help ensure you follow Tennessee law and court rules.
Disclaimer
This article is informational only and does not constitute legal advice. It does not create an attorney-client relationship. For advice about your particular situation, consult a licensed Tennessee attorney or the local probate court.
Helpful Hints
- Call several banks ahead of time and ask exactly which documents they require to open an estate account.
- Apply for the estate EIN as soon as you know who will be personal representative; you will need it for banking and tax purposes.
- Keep estate funds separate from your personal funds at all times and keep clear records of every deposit and payment.
- Get multiple certified copies of the death certificate — banks, financial institutions, and government agencies typically each want their own certified copy.
- If you find resistance at a bank, request to speak with the bank’s estate administration specialist or legal department; some banks have staff who handle estates routinely.
- When in doubt about whether an asset needs to go through probate, ask the probate court clerk or a probate attorney before moving funds or changing ownership.
- Keep beneficiaries and heirs informed in writing about the status of the estate and how you are handling estate funds.