Detailed Answer
This article explains how to open a bank account for an estate in Illinois using an IRS Employer Identification Number (EIN). It walks through the typical steps, documents you will need, and practical tips for working with banks and the probate court. This is general information only and not legal advice.
1. Who can and should open an estate account?
When someone dies, a personal representative (called an executor if there is a will, or an administrator if there is not) manages the decedent’s assets and pays debts. Under Illinois law the personal representative has authority to collect assets and deal with the decedent’s property. The appointment process and duties are governed by the Illinois Probate Act (755 ILCS 5). See the Probate Act: https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2106&ChapterID=60.
You generally need an estate account when funds or payable-on-death proceeds must be pooled and managed for estate administration, creditors must be paid from the estate, or estate income must be tracked for tax purposes. If the decedent had joint accounts, payable-on-death (POD) designations, or certain small non-probate assets, those might bypass probate and not require an estate account.
2. Typical documents banks require
- Death certificate (certified copy).
- Office of the court’s document proving the appointing of the personal representative – usually called “Letters of Office,” “Letters Testamentary,” or “Letters of Administration.” These are issued by the Illinois circuit court handling probate.
- IRS EIN confirmation for the estate (CP 575 letter) or the SS-4 application confirmation.
- Personal identification for the personal representative (driver’s license or passport).
- Bank-specific forms (signature card, account-opening paperwork, and sometimes an indemnity or certification that the representative has authority to open the account).
Because each bank has internal procedures, ask the bank in advance which documents it requires. Many banks will accept a certified copy of Letters of Office; some will accept a court-stamped filing receipt temporarily while Letters are pending.
3. How to get an EIN for the estate
- Determine that the estate needs an EIN. An estate uses an EIN (not the personal representative’s SSN) when the estate will have income or will file a fiduciary income tax return (Form 1041), or when a bank requires a business-type taxpayer identification number to open the account.
- Apply to the IRS. The fastest method is online: Apply for an EIN online. You can also apply by mail or fax by submitting Form SS-4. After you apply online, the EIN is issued immediately. The IRS also publishes guidance for estate and trust tax returns: https://www.irs.gov/businesses/small-businesses-self-employed/estate-and-trust-tax-returns.
- Use the EIN on bank paperwork and on any tax returns the estate must file (for example, Form 1041 if required).
4. How to title the estate bank account
Title the account so it clearly belongs to the estate and shows who is authorized to act. Common formats banks accept include:
- Estate of [Decedent’s Name] — [Personal Representative’s Name], Personal Representative
- [Decedent’s Name], Deceased, Estate of [Decedent], [Personal Representative’s Name] as Personal Representative
Ask the bank which exact wording it prefers. Make sure the account records list the estate’s EIN in place of the decedent’s SSN.
5. If probate has not yet been opened
Some banks will accept a temporary solution if a probate petition has been filed but Letters are not yet issued: a court-stamped copy of the filed petition or a certified copy of the death certificate plus a bank-specific affidavit. Others will require the actual Letters of Office. If the estate qualifies, Illinois also provides simplified or small-estate procedures in some cases (check the Probate Act and local court rules). For county-specific practice, contact the local circuit court clerk or review their probate intake information at the Illinois Courts site: https://www.illinoiscourts.gov/.
6. Taxes and recordkeeping
Keep the estate’s funds in the estate account. Track deposits, distributions, bills paid, and receipts carefully. The estate may need to file a final individual income tax return for the decedent, income tax returns for the estate (Form 1041) if it has income, and a possible estate tax return if applicable. See IRS guidance: https://www.irs.gov/businesses/small-businesses-self-employed/estate-and-trust-tax-returns. Good records make accounting to beneficiaries and filing returns simpler.
7. Common pitfalls and how to avoid them
- Don’t mix estate funds with your personal funds. Keep a separate estate account and records.
- Bring multiple certified death certificates. Banks and other institutions often demand original certified copies.
- Confirm whether the bank requires the IRS CP 575 EIN confirmation letter or if they will accept the SS-4 confirmation page or an online EIN issuance screenshot.
- Expect some banks to have proprietary wording and signature requirements — call ahead and get a checklist.
8. When to get help from a probate attorney
Contact an attorney if the estate is large, complex, contested, includes real estate, or if you get pushback from the bank. An attorney can prepare the necessary probate filings, obtain Letters of Office, draft fiduciary accounting, and advise on taxes and creditor issues. For Illinois probate procedure and personal representative duties, consult the Illinois Probate Act: https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2106&ChapterID=60.
Disclaimer: This information is educational and general in nature. It does not constitute legal advice, and it does not create an attorney-client relationship. For advice specific to your situation, consult a licensed Illinois attorney.
Helpful Hints
- Call the bank first. Ask exactly which documents they require to open an estate account.
- Get several certified death certificates from the county vital records office to avoid repeated trips to the funeral home or court.
- Apply for the estate EIN online for fastest issuance: IRS EIN online.
- Obtain certified Letters of Office from the Illinois circuit court that handled probate. Keep certified copies in case the bank asks for originals later.
- Keep estate transactions and receipts separate and organized. Accurate records ease tax reporting and eventual distribution to beneficiaries.
- If the estate seems small, check whether Illinois small-estate procedures apply before filing full probate paperwork — your circuit court clerk or an attorney can advise on the local threshold and process.
- If the bank refuses to open an account despite proper documents, ask for a written explanation and consider contacting the court clerk or a probate attorney for help enforcing the representative’s authority.