Detailed Answer
When a parent dies, the estate often needs its own bank account so the personal representative (executor or administrator) can collect assets, pay bills and taxes, and distribute property to beneficiaries. Under Delaware law, the practical steps are: obtain legal authority to act for the estate, get an IRS Employer Identification Number (EIN) for the estate, and open the estate bank account using the estate EIN and the court-issued proof of appointment. The steps below explain what each of those items means and how to complete them.
Step 1 — Confirm who can act for the estate
Delaware requires that someone be legally authorized to manage the decedent’s assets before opening an estate account in most cases. That authority usually comes from the probate process. If the decedent left a valid will, the person named as executor files the will with the appropriate Delaware probate office to be appointed. If there is no will, an interested person can petition to be appointed as administrator. See Delaware’s decedent and probate statutes for background: Del. Code Title 12 — Decedents’ Estates.
Step 2 — Obtain certified documents from the court
After filing, the court (or Register of Wills / probate office) issues proof of appointment. These documents are commonly called “Letters Testamentary” (if there is a will) or “Letters of Administration” (if there is no will). Banks typically require a certified copy of those letters before allowing you to open an estate account. Also obtain multiple certified copies of the death certificate from the state or the funeral home.
Step 3 — Get the estate’s EIN from the IRS
An estate is a separate tax entity once someone is appointed to manage it. The IRS requires an EIN for the estate for reporting and tax-payment purposes (for example, to file Form 1041 if the estate earns taxable income). Apply for an EIN using Form SS-4. The fastest method for estates with a principal place of business in the U.S. is the IRS online EIN application: IRS — Apply for an EIN Online. When filling out the SS-4, list the estate as the name (for example, “Estate of [Decedent Name]”) and identify the executor or administrator as the responsible party.
Step 4 — Bring the right documents to the bank
When you go to open the estate account, the bank will generally ask for:
- Certified copy of Letters Testamentary or Letters of Administration issued by the Delaware probate authority;
- Certified copy of the death certificate;
- IRS EIN confirmation (the CP 575 notice or the EIN assignment page you receive online or by mail);
- Personal identification for the representative (driver’s license, passport);
- The decedent’s account numbers (if you are moving funds from a prior account) or statements showing assets to be deposited into the estate account.
Each bank has its own procedures. Some banks will open a temporary estate account on presentation of a filed probate petition and a court date notice, but most require final appointment documents.
Step 5 — Name and use the account correctly
Name the account so it clearly identifies the estate and the personal representative. A common format is:
Estate of [Decedent Full Name] — [Personal Representative Name], Personal Representative — EIN XX-XXXXXXX
Keep estate funds separate from the personal funds of the representative. Do not commingle assets. Maintain clear records of all receipts, deposits, disbursements, and transfers. These records protect the representative and support fiduciary accounting required by Delaware probate law and beneficiaries.
Step 6 — Understand tax and reporting duties
Once the estate has an EIN and an account, the representative must handle the estate’s tax obligations: file the decedent’s final individual income tax return (Form 1040) for the period up to death, consider any estate income tax reporting (Form 1041) for income generated by estate assets after death, and retain documentation for distributions to beneficiaries. For federal EIN guidance see the IRS link above.
When a bank may let you access funds without an EIN or letters
Some practical exceptions exist:
- Small accounts often have lower-bank-threshold procedures that let a surviving spouse or joint owner withdraw funds without probate. Each bank’s policy differs.
- Accounts titled as payable-on-death (POD) or joint accounts typically pass directly to the named beneficiary or joint owner outside of probate.
If the account is solely owned by the decedent and no joint owner or beneficiary exists, most banks will require the court appointment and estate EIN before releasing funds.
When to get lawyer help
Consult an attorney if you expect contested claims, complex assets (business interests, real estate in multiple states, tax controversy), unusual creditor issues, or disputes among heirs. An attorney can also speed up probate filings and help interpret Delaware statutes that affect administration. For general statutory rules see Del. Code Title 12 — Decedents’ Estates.
Helpful Hints
- Start with the death certificate. Order multiple certified copies — banks, insurance companies, and government agencies will request them.
- Call the bank before you go. Ask which probate documents and EIN evidence they require and whether they accept a photocopy or need certified documents.
- Apply for the EIN after you have the decedent’s legal name and your status as personal representative. The IRS online process is the fastest.
- Keep clear records and separate checks or a debit card for estate expenses. Track every transaction with receipts and explanations.
- Don’t distribute estate funds until creditors are addressed and you have authority to distribute. Delaware law sets creditor notice and claim procedures; follow them to avoid personal liability.
- If the estate qualifies for small-estate summary procedures, the probate office can explain whether the formal appointment step can be shortened — ask the Delaware probate office or check Del. Code Title 12 for guidance.
- If a bank refuses to open an account despite your certified letters and EIN, ask to speak to a bank officer and show the court documents. If needed, an attorney can request a court order directing the bank to cooperate.
Disclaimer: This article is for educational purposes and is not legal advice. Rules and procedures vary by county and bank and can change. Consult a licensed Delaware attorney or the local Delaware probate/register office for guidance specific to your situation.