How to open an estate bank account using an IRS EIN for a deceased parent (Arkansas)

Short answer: The personal representative (executor or administrator) appointed by the Arkansas probate court uses the estate’s Employer Identification Number (EIN) — obtained from the IRS — plus court-issued letters (Letters Testamentary or Letters of Administration), the death certificate, and identification to open an estate bank account. Banks have different document requirements, and you must keep estate funds separate and well-documented while you collect assets, pay debts, file taxes, and distribute inheritances.

Detailed answer — step‑by‑step under Arkansas law

Below is a practical, stepwise explanation you can follow. This assumes a common fact pattern: a parent has died, you are (or will be) appointed as personal representative, and you need to place estate funds into a bank account to administer the estate.

1. Confirm who has authority to act for the estate

Only a person with legal authority from the probate court can open an estate account in the estate’s name. That authority typically appears in “Letters Testamentary” (if there is a will) or “Letters of Administration” (if there is no will). If you are named executor in the will, you still must present the court-issued letters before most banks will accept you as the estate’s representative.

For general information about probate and appointment of personal representatives in Arkansas, see the Arkansas Courts probate overview: https://www.arcourts.gov/court-programs/probate.

2. Obtain an EIN for the estate from the IRS

An estate is a separate taxpayer for income tax purposes. The estate will need an EIN if the estate will receive income after the date of death (for example, interest, dividends, rent) or if you will file Form 1041 (U.S. Income Tax Return for Estates and Trusts). The decedent’s Social Security Number is used for the decedent’s final individual return (Form 1040) covering the period ending on the date of death; the estate’s EIN is used for estate income after death.

How to get the EIN:

Apply online (fastest): IRS — Apply for an EIN online.
Or use Form SS-4 by mail or fax: IRS — About Form SS-4.
When you apply, identify the applicant as the personal representative of the estate, state the entity type as “estate”, provide the decedent’s name and date of death, and include the probate court information if available.

3. Gather documents banks typically require

When opening an estate account you should expect to present:

Certified copy of the death certificate (many banks want an official copy).
Original or certified copy of the court-issued Letters (Letters Testamentary or Letters of Administration) showing your appointment and authority.
The estate EIN (IRS confirmation letter or printed EIN notice).
Your government ID and contact details for the estate.
The decedent’s account numbers or statements if you plan to transfer funds from personal accounts.
Copy of the will (if available) — the bank may request to see it or the probate court’s record that the will was admitted.

Contact the bank ahead of time to confirm its exact document list. Different banks and branches have different requirements.

4. Open the estate account and move estate funds in

Once the bank accepts your documentation, open a checking account titled in the estate’s name (for example: “Estate of Jane Doe, John Smith, Personal Representative”). Deposit cash, checks, or transfer bank account balances according to bank rules. If a decedent’s individual account lists only the decedent, the bank will often require the court letters before releasing funds. If accounts were jointly held, survivorship rules or account agreements control distribution and may not require probate.

5. Use the estate account only for estate business; keep records

Do not mix estate money with your personal funds. Keep a ledger and save receipts showing all estate receipts and disbursements (bills paid, funeral expenses, taxes, creditor payments, distributions to beneficiaries). You will need these records for the final accounting to the court and for estate tax filings.

6. Tax reporting and EIN use

The estate EIN is used for:

Filing the estate’s income tax return (Form 1041) if the estate has taxable income after the date of death.
Reporting and withholding employment or other taxes, if applicable.

For federal guidance about deceased taxpayers and estate tax filing requirements, see: https://www.irs.gov/individuals/deceased-taxpayers.

7. Small estates and alternatives

If the estate’s value is very small, Arkansas may offer simplified procedures to collect assets without formal probate. Banks sometimes allow a payable-on-death (POD) beneficiary, transfer-on-death, or a small‑estate affidavit to collect accounts. Whether these alternatives are available depends on the asset type, the bank’s policies, and Arkansas procedures. Check with the probate court clerk or the bank before assuming probate is unnecessary.

8. When to get legal help

If the estate is complex, creditors contest distributions, taxes are substantial, or you’re unsure about your duties and liabilities as personal representative, consult a probate attorney licensed in Arkansas. An attorney can help file necessary petitions, prepare accountings, and reduce personal risk to the representative.

Illustrative hypothetical example

Hypothetical: A parent dies leaving a checking account with $20,000 and a will naming you executor. You petition the Arkansas probate court, receive Letters Testamentary, apply for an EIN online for the “Estate of [Parent’s Name],” and bring the EIN notice, certified death certificate, and Letters to your bank. The bank opens an “Estate of [Parent’s Name] — John Doe, Personal Representative” checking account. You move the $20,000 into that account, pay funeral expenses and a small outstanding medical bill, keep receipts, file any necessary estate income tax returns with the estate EIN, then distribute the remainder to beneficiaries under the will after court approval or after completing the estate accounting required by Arkansas law.

Helpful hints

Call the bank first — ask exactly which documents the branch requires to open an estate account.
Get several certified copies of the death certificate from the funeral home or the vital records office; banks, title companies, and government agencies often require originals or certified copies.
Apply for the estate EIN as soon as you have authority or have filed the probate petition; online applications are immediate if you qualify to apply online.
Use the estate’s EIN — not the decedent’s SSN — for anything the estate receives after death and for estate tax filings.
Do not co-mingle estate and personal funds. Proper separation protects you from personal liability as a representative.
Keep meticulous records of every estate transaction and back up bank statements and receipts.
If you are not appointed by the court (no Letters), the bank will likely refuse to let you open an estate account in that name.
When in doubt about fiduciary duties, creditor claims, or tax consequences, consult an Arkansas probate attorney.

State resources and federal forms

Arkansas Courts — Probate overview and resources: https://www.arcourts.gov/court-programs/probate
IRS — Apply for an EIN online: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
IRS — Guidance for deceased taxpayers: https://www.irs.gov/individuals/deceased-taxpayers
Arkansas Department of Finance and Administration: https://www.dfa.arkansas.gov/ (for state tax guidance and contacts)

Disclaimer: This article is educational only. It is not legal advice and does not create an attorney-client relationship. Laws and court procedures change. For advice about a specific estate, contact a licensed Arkansas attorney or the probate court in the county where the decedent lived.