How to Open an Estate Bank Account in Hawaii Using an IRS EIN

Disclaimer: This information is educational only and is not legal advice. It does not create an attorney-client relationship. For advice about your specific situation, consult a licensed attorney in Hawaii.

When someone dies, their assets that belong to the decedent’s estate should be kept separate from surviving family members’ personal funds. Opening an estate bank account in the estate’s name (using an Employer Identification Number, or EIN, issued by the IRS) is a common and important step. Below is a clear, step-by-step explanation of how that typically works under Hawaii law and federal practice, what documents banks usually require, and the tax and administrative steps you’ll likely face.

1) Confirm who may open the account

Only an authorized fiduciary may open an estate account in the estate’s name. That usually means a person with one of the following:

• Letters Testamentary or Letters of Administration issued by the Hawaii probate court (the personal representative named by the court); or
• A valid small-estate affidavit or other court document authorizing distribution/handling of specific assets without full probate (if the estate qualifies under Hawaii’s small estate procedures); or
• A designated personal representative in the decedent’s will who has been formally appointed by the court.

To learn more about opening an estate administration case and the probate process in Hawaii, see the Judiciary’s probate self-help resources: Hawaii State Judiciary — Probate. For the statutory framework for probate and administration, see Hawaii Revised Statutes Chapter 560: HRS Chapter 560 (Probate and Administration).

2) Obtain an EIN for the estate

The executor or administrator needs an EIN to open the estate bank account and to file estate income tax returns (Form 1041) and other federal filings. You obtain an estate EIN from the IRS. Key points:

• Apply online (fastest) at the IRS page: Apply for an EIN Online. The online application requires that the applicant have a Social Security number or ITIN and complete the application in one session.
• You can also apply by submitting IRS Form SS-4. See: About Form SS-4.
• Use the decedent’s legal name with “Estate of [Decedent Name]” as the entity name and list the date of death where the form asks. Provide the personal representative’s name and contact information as the responsible party.
• Keep the EIN confirmation (CP 575 or the SS-4 fax response) — banks typically accept that as proof of the estate EIN.
• For general federal guidance on estates and trusts and tax filing requirements, see the IRS estates and trusts information: IRS — Estates and Trusts and Form 1041 guidance: About Form 1041.

3) Gather documents the bank will want

Banks vary, but they almost always require:

• Certified or original copy of the death certificate;
• Original or certified copy of Letters Testamentary, Letters of Administration, or other court-issued document that names you as the personal representative;
• IRS EIN confirmation (CP 575 notice or a copy of the SS-4 submission confirmation);
• Personal identification for the fiduciary (valid government ID);
• Bank may ask for the decedent’s most recent account statements and a copy of the will (if probated).

Call the bank first and ask for their estate account checklist. Some banks require a bond if the will or court orders it; others accept the court’s letters as sufficient. If the estate is being handled under a small-estate procedure, banks may accept a small estate affidavit instead of formal letters — check the bank’s policy and Hawaii law.

4) Visit the bank and open the account in the estate’s name

When you go to the bank:

1. Bring the documents listed above.
2. Ask the bank to open the account titled to the estate (for example: “Estate of Jane Doe, by John Smith, Personal Representative”) and to record the EIN as the tax ID.
3. Deposit estate funds (proceeds from the sale of property, checks payable to the decedent’s estate, retirement plan distributions paid to the estate, etc.) into this account. Do not commingle estate funds with personal funds.
4. Keep detailed records of every deposit, withdrawal, check written, and the purpose for each transaction. Estate accounting will be required by the court and by beneficiaries.

5) Tax and reporting considerations

Once the estate account is open, you’ll likely need to handle federal (and possibly Hawaii) tax filings:

• Final personal income tax return for the decedent (Form 1040) covering income up to the date of death.
• Estate income tax returns (Form 1041) for income generated by the estate after death (using the estate EIN).
• If the estate receives income or has taxable events, consult IRS guidance for estates and trusts: IRS — Estates & Trusts.
• Hawaii may also have estate tax or state filing requirements depending on the estate’s value. Ask a Hawaii tax attorney or CPA about state filing obligations. For probate and administration procedures under Hawaii law, review HRS Chapter 560: HRS Chapter 560.

6) Close the estate bank account when appropriate

After debts, taxes, and administration costs are paid, and after the court approves distributions (if required), transfer funds to beneficiaries and close the account. Keep records and obtain receipts from beneficiaries. The court may require a final accounting before discharge of the personal representative.

Common obstacles and how to handle them

• If the bank refuses to recognize the EIN without court letters, return with certified Letters of Administration/Letters Testamentary.
• If some accounts were jointly held or payable-on-death, banks may release funds without probate depending on account titling. Confirm each account’s ownership and beneficiary designations.
• If the estate is very small, a small-estate affidavit or summary administration may avoid full probate — check Hawaii’s rules and the bank’s policy.

Helpful Hints

• Call the bank before your visit and confirm their requirements for opening an estate account. Bank policies vary considerably.
• Apply for the EIN as soon as you are appointed or as soon as you will be acting in that capacity — you can typically get one the same day online (if eligible).
• Keep estate funds separate. Commingling personal and estate funds can create legal and tax problems and may expose the personal representative to liability.
• Keep meticulous records and receipts for every estate transaction. The court and beneficiaries will expect an accurate accounting.
• If the estate includes retirement accounts, life insurance, or real property, those assets can have special rules and tax consequences. Seek tailored advice for those assets.
• If you run into difficulty with probate procedure, bank cooperation, or tax questions, consult a licensed attorney in Hawaii who handles probate and estate administration.