Detailed Answer
In Maryland, when you serve as an executor (called a personal representative) of a decedent’s estate, you often need a federal Employer Identification Number (EIN) to open bank accounts, file estate tax returns, and manage financial affairs. The IRS issues the EIN, and you act as the “responsible party” for the estate.
Under Md. Est. & Trusts Code § 7-102, a personal representative has authority to handle tax matters and obtain required identification numbers. (Md. Est. & Trusts Code § 7-102.)
When an EIN Is Required
- If the estate will receive income after the decedent’s death.
- If you need to open a bank or investment account in the estate’s name.
- If you must file a federal estate tax return (Form 706) or an income tax return for the estate (Form 1041).
Steps to Obtain an EIN
- Access the IRS Online EIN Application: IRS EIN Application. You’ll get the EIN immediately.
- Select “Estate” as the entity type.
- Enter the decedent’s full legal name, your name as executor, mailing address, and date of death.
- If you prefer fax or mail, complete IRS Form SS-4 (Form SS-4 PDF) and send it to the appropriate IRS office.
- Retain the EIN confirmation letter for your estate records.
Key Considerations
- Use the format “Estate of [Decedent’s Full Name]” when naming the estate.
- Ensure the executor’s Social Security number matches IRS records.
- Apply promptly to meet tax-filing deadlines.
Disclaimer: This article provides general information on Maryland law and the EIN application process. It does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Helpful Hints
- Have the decedent’s date of death and Social Security number on hand before you begin.
- Use the new EIN when filing the estate’s first federal income tax return (Form 1041).
- Notify banks and financial institutions of the estate’s EIN to avoid using your personal SSN.
- Keep copies of all IRS correspondence and confirmation letters in the estate’s records.
- Consider hiring a probate attorney to ensure compliance with Maryland probate rules.