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

Detailed Answer

This article explains, under Michigan law, how to open a bank account for a decedent’s estate using an IRS Employer Identification Number (EIN). It covers who can open the account, what documents banks typically require, how to get an EIN for an estate, and practical steps to manage the account. This is general information only and not legal advice.

Who can open an estate bank account in Michigan?

Only the person with legal authority to act for the estate may open an estate bank account. That is usually the personal representative (also called an executor or administrator). That authority typically comes from the probate court in the form of letters testamentary, letters of authority, or similar court documents issued by the Michigan probate court.

Why use an EIN instead of the decedent’s Social Security Number?

• Banks often prefer or require an EIN for estate accounts because the estate is a separate tax and accounting entity. Using an EIN reduces identity-mix-ups and protects the decedent’s SSN.
• An EIN allows the estate to receive income, pay bills, and file estate-related tax returns (if any) under the estate’s own tax identification.

Step-by-step process

1. Confirm you have legal authority.

   If the decedent left a will, the personal representative named in the will should be appointed by the probate court and receive letters testamentary. If there is no will, the probate court must appoint an administrator and issue letters of authority. Contact the local Michigan probate court if you’re unsure. See Michigan probate court information: courts.michigan.gov/probate-court.

2. Apply for an EIN for the estate.

   Once you expect to act as personal representative (or after appointment), apply for an EIN from the IRS. Use the estate name format such as “Estate of [Decedent Name]” on the application. You can apply online if you have a U.S. taxpayer identification number for the responsible party: IRS — Apply for an EIN online. For form details see: IRS Form SS-4.

   When completing the SS-4 or online application, the estate is the entity; the responsible party is the personal representative (an individual) and the responsible party’s SSN or ITIN is normally used on the EIN application.

3. Gather the documents the bank will require.

   Bank policies vary, but most Michigan banks will ask for:

   • Certified copy of the death certificate (or official copy).
   • Letters testamentary or letters of authority issued by the Michigan probate court (these prove your legal authority to act for the estate).
   • The estate EIN (IRS confirmation letter or EIN assignment documentation).
   • Your government-issued photo ID (driver’s license or passport).
   • The decedent’s will (if applicable) or other court paperwork if requested.

   Some banks also require a copy of the probate court order or the court file number. Call the branch ahead of time and ask which originals or certified copies they require.

4. Open the account using the estate name and EIN.

   Open the account in the estate’s name (for example, “Estate of Jane Smith, Deceased”), not the personal representative’s personal account. Give the bank the EIN and your letters from the probate court. Use the account only for estate income, expenses, and distributions to beneficiaries. Keep a separate accounting of every deposit and withdrawal.

5. Use the account to collect assets and pay claims.

   Deposit checks payable to the decedent as instructed by the bank. Pay valid debts, funeral expenses, taxes, and administrative costs from the estate account. Do not mix estate funds with your personal funds.

6. Recordkeeping, taxes, and closing the account.

   Keep detailed records and bank statements. If the estate generates income (interest, dividends, sale of assets) you may need to file federal estate income or fiduciary tax returns. Consult the IRS for federal filing rules. After paying debts and distributing assets to heirs under the will or Michigan probate order, close the estate account and retain records in case of future questions.

Michigan law and where to look

Michigan’s rules for appointment of personal representatives, duties of personal representatives, and probate administration are in the Michigan Estates and Protected Individuals Code (EPIC). For the statutes and more detail, consult the Michigan Compiled Laws chapter for estates and probate: MCL Chapter 700 — Estates and Protected Individuals Code. For local procedures and probate forms, use the Michigan courts’ probate resources: Michigan Probate Court Forms.

When you might not need an estate account

Some small-asset transfers can be completed without formal probate or an estate account using Michigan’s non-probate transfer options or small-estate procedures. These vary by value and asset type; check with the probate court for your county. If an estate is simple and all assets pass by beneficiary designation or joint ownership, you may not need to open a separate estate account.

Common bank requirements and practical tips

• Banks often want the original or a court-certified copy of your letters. Ask in advance whether notarized copies are acceptable.
• Some banks require the personal representative on the account to have a Michigan address or to visit a branch in person.
• If the decedent had multiple bank accounts at the same bank you may be able to consolidate funds into the estate account; the bank will advise on next steps.
• If a bank refuses to open an estate account even with required documents, request the bank’s written policy and consider contacting a different bank or a Michigan probate attorney for help enforcing your authority.

Helpful Hints

• Contact the local Michigan probate court early to learn filing and appointment requirements for your county.
• Call the bank ahead and get a checklist so you bring exactly what they need in one visit.
• Apply for the estate EIN as soon as you have the authority to act; IRS confirmation is helpful at the bank.
  
  IRS EIN: Apply for an EIN.
• Keep estate funds separate. Mixing funds can create personal liability and tax problems.
• Retain all receipts and a ledger of estate transactions; beneficiaries and the court may later request an accounting.
• If the estate is valuable or complicated, consider consulting a Michigan probate attorney for advice on fiduciary duties, tax filings, and contested matters.
• If you encounter unpaid taxes or questions about federal estate tax, consult the IRS estate and gift tax resources or a tax professional.

Next steps

1) Confirm whether you are or will be the personal representative (contact the probate court if needed). 2) Apply for the EIN with the IRS. 3) Gather the death certificate and your letters from the probate court. 4) Call the bank to confirm exact requirements and open the estate account in the estate’s name using the EIN.

Disclaimer: This is general information about Michigan probate practice and is not legal advice. Laws and bank policies change. For advice about your specific situation, contact a Michigan probate attorney or your local Michigan probate court.