Opening an Estate Bank Account in Louisiana Using an IRS EIN: Detailed Steps and Practical Guidance

Disclaimer: This is educational information only and not legal advice. Laws vary by situation. Consult a Louisiana attorney for advice tailored to your facts.

Detailed Answer

If a parent dies in Louisiana and you need to handle money that belonged to their estate (bank accounts, rental income, sale proceeds, etc.), most banks will require an Employer Identification Number (EIN) issued by the IRS before you can open an estate account in the decedent’s name. An estate account keeps the estate’s funds separate from the personal funds of the successor or executor and helps with tax reporting, creditor payments, and distribution to heirs.

Step 1 — Determine whether you must open a formal succession or can act without court appointment

Louisiana law has procedures for both small informal successions and formal successions that require court appointment of a succession representative. If the estate qualifies for a simplified or small succession process, you may be able to use a small succession affidavit or other simplified procedure; otherwise, the court will issue letters (a court document) appointing the succession representative (executor or administrator). To learn more about Louisiana succession law and how to find the relevant statutes or local rules, start at the Louisiana Legislature’s law search page: https://legis.la.gov/Legis/LawSearch.aspx.

Step 2 — Obtain required documents

Gather the documents a bank will want. Typical documents include:

• Certified copy of the decedent’s death certificate (multiple certified copies are often needed).
• The decedent’s original will, if one exists.
• Court documents showing appointment of the succession representative (e.g., letters testamentary or letters of administration) OR a small succession affidavit if that process is used.
• Your photo ID and contact information.

If you have not yet opened a succession and the bank insists on a court appointment, you will need to open a succession in the appropriate parish court to obtain official letters. If you qualify for a small succession route, the bank may accept the small succession affidavit and certified death certificate instead of formal letters. Check the bank’s policy early; policies vary.

Step 3 — Get an EIN for the estate from the IRS

An estate is a separate taxpayer for federal income tax purposes from the decedent. The IRS issues an EIN to the estate so the estate can receive interest, file estate or income tax returns, and for the bank to report interest or other income correctly. You can apply for an estate EIN online or by mail using Form SS-4. Helpful IRS links:

• IRS Publication 559 (Survivors, Executors, and Administrators) — explains tax responsibilities and when to obtain an EIN: https://www.irs.gov/publications/p559
• Apply for an EIN online or review Form SS-4 info: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online and https://www.irs.gov/forms-pubs/about-form-ss-4
• Form 1041 (income tax return for estates and trusts): https://www.irs.gov/forms-pubs/about-form-1041

When you apply, identify the responsible party (the succession representative). Use the estate name format commonly accepted by banks, such as “Estate of [Decedent Full Name],” and provide the date of death. If you apply online, you usually receive the EIN immediately; by mail it can take longer.

Step 4 — Bring EIN and proof of authority to the bank

After you have the EIN, contact the bank to learn its exact requirements. Most banks will ask for:

• Estate EIN documentation (IRS EIN confirmation letter or notice).
• Certified death certificate.
• Letters testamentary or letters of administration (court-issued) OR an accepted small succession affidavit.
• Personal identification for the successor/representative.

Ask whether the bank wants the account named exactly as the estate’s legal name (e.g., “Estate of Jane Doe, Deceased, John Doe, Succession Representative”) and whether the bank requires a court-sealed copy of the appointment documents.

Step 5 — Open the estate account and follow recordkeeping practices

Open a separate estate checking or trust account. Deposit estate proceeds there and use it to pay estate expenses, creditors, taxes, and distributions to heirs. Keep clear records of all deposits, withdrawals, paid bills, and transfers. These records support accounting to heirs and the court and are necessary for any tax filings (Form 1041 or final Form 1040 for the decedent if required).

What if a bank refuses to open an estate account?

If the bank refuses to open an estate account without formal letters, you will likely need to open a formal succession in the parish court to obtain appointment documents it accepts. Courts can issue letters confirming your authority. If the bank accepts a small succession affidavit, ensure the affidavit meets Louisiana procedural requirements and contains the required attachments and notarizations.

Tax and reporting considerations

Once the estate has an EIN, you may need to file:

• A final individual income tax return for the decedent (final Form 1040) covering the date of death to year-end if required by income thresholds.
• Form 1041 for estate income (if the estate earns income during administration above the filing threshold).

IRS Publication 559 explains when these returns are required and how estate income is reported: https://www.irs.gov/publications/p559

Helpful Hints

• Contact the bank early. Bank policies differ. Some accept a certified death certificate and the decedent’s will for small matters; others require formal letters.
• Obtain several certified death certificates right away. Multiple certified copies make transactions easier.
• Use the precise estate name on IRS EIN application and bank account to avoid confusion (commonly “Estate of [Name],” with the successor’s title).
• Keep estate funds separate from your personal accounts at all times.
• Keep a running ledger of payments made from the estate and keep original receipts. These records are essential for heirs and for the court.
• If you face creditor claims or complex assets (business interests, multi-state property), consult a Louisiana succession attorney to avoid personal liability and ensure proper handling under Louisiana law.
• Review IRS guidance (Pub. 559) for federal tax responsibilities and when the estate must file Form 1041 or pay estimated taxes.
• When in doubt about whether a formal succession is required, contact the clerk of the parish court where the decedent lived for local filing rules and forms.

For general Louisiana statutes and to search specific succession laws, use the Louisiana Legislature’s law search tool: https://legis.la.gov/Legis/LawSearch.aspx

If you need help locating forms, understanding whether a small succession affidavit will be acceptable, or handling bank refusals, speak with a Louisiana attorney experienced in successions (probate) or contact the parish clerk of court for procedural guidance.