Detailed Answer
Quick overview: After a parent dies, the person appointed by the court to manage the estate (the personal representative, sometimes called an executor or administrator) uses an Employer Identification Number (EIN) issued by the IRS to open an estate bank account. That account holds the decedent’s funds while debts and taxes are paid and before distributions to heirs. The basic steps are: (1) determine whether probate/appointment is required, (2) get court-issued letters appointing the personal representative, (3) obtain an estate EIN from the IRS, and (4) open the estate account at a bank using the letters, EIN, and required identification.
1. Do you need probate or court appointment?
In Mississippi, whether you must open a probate estate depends on how the deceased’s assets are titled. Accounts titled jointly or with a payable-on-death (POD) or transfer-on-death (TOD) beneficiary usually pass outside probate. Assets held solely in the decedent’s name typically require administration through the county chancery court so someone can lawfully manage and distribute them. For general information on Mississippi courts and probate filing, see the Mississippi Judiciary site: https://courts.ms.gov/. For statutory guidance on decedents’ estates, see the Mississippi Legislature home page: https://www.legislature.ms.gov/ (look under Title 91: Decedents’ Estates).
2. Obtain court appointment (letters testamentary or letters of administration)
To act officially for the estate most banks will require certified court-issued documents (commonly called “letters testamentary” if there is a will, or “letters of administration” if there is not). To get those, you file a probate/opening petition in the chancery court in the county where the parent lived. The court will issue certified copies of the letters once it appoints you. Keep several certified copies; banks and other institutions usually want copies stamped by the court.
3. Apply for the estate EIN from the IRS
The IRS issues an EIN for an estate so it can report estate income and file any required tax returns (Form 1041 for estate income). Use the IRS guidance to apply:
- Online (fastest) — IRS Online EIN application: https://www.irs.gov/…/apply-for-an-employer-identification-number-ein-online.
- By mail or fax — submit Form SS-4. See IRS estate and trust tax information: https://www.irs.gov/…/estate-and-trust-tax-information.
When completing Form SS-4, identify the legal name as “Estate of [Decedent’s Full Name]” and enter the decedent’s date of death in the appropriate box. The court-appointed personal representative’s Social Security Number and contact information are required on the application. If you apply online, you will usually receive the EIN immediately; by mail/fax it takes longer.
4. Open the estate bank account
Call the bank(s) the decedent used before going in. Banks have different internal policies. Typical documents the bank will request:
- Certified copy of the death certificate.
- Certified letters testamentary or letters of administration from the chancery court.
- The new estate EIN (or IRS confirmation letter).
- Personal identification for the appointed representative (driver’s license, passport).
- The decedent’s account numbers and recent statements.
The bank will open an account titled for the estate (for example: “Estate of Jane Doe, Deceased, by John Smith, Personal Representative”) and require you to use the estate EIN on checks and tax documents. Do not commingle estate funds with your personal money. Use the estate account to collect funds, pay valid bills, and distribute assets only after debts and required filings are complete.
5. Taxes, recordkeeping, and distribution
Open the estate account as soon as practically possible once you have the required documents because:
- The estate may have income (interest, dividends) that must be reported on Form 1041 using the estate EIN.
- You must pay valid creditors out of estate funds before distribution to beneficiaries.
- Good records reduce disputes and simplify required accountings to the court or beneficiaries.
Keep clear records of every deposit and disbursement. Many personal representatives hire a bookkeeper or use spreadsheet/accounting software to track receipts, bills paid, and distributions. The court may require a final accounting before it approves closing the estate and distributing remaining assets to heirs.
Typical timeline and bank expectations
- If a will names you executor and the court issues letters, you can apply for an EIN and open the account quickly.
- If an estate is small, some banks will allow a short-term use of the decedent’s Social Security Number to close accounts, but most prefer an EIN for ongoing estate administration. Getting an EIN avoids using the decedent’s SSN for estate transactions.
- Bank staff may ask for certified copies of the letters and certified death certificate; bring originals if asked. Call ahead to learn exact requirements.
Hypothetical example
Imagine your parent in Mississippi passed away leaving two bank accounts solely in their name and a simple will naming you as executor. You would:
- File a probate petition in the chancery court in the county where your parent lived and provide the original will.
- Receive certified letters testamentary from the court naming you as personal representative.
- Apply online for an estate EIN from the IRS as “Estate of [Parent]” and receive the EIN immediately.
- Take the letters, death certificate, EIN confirmation, and your ID to the bank to open an “Estate of [Parent]” account. Deposit any checks payable to the estate there and use that account to pay debts and funeral expenses.
- Keep records, file any required tax returns, submit accountings to the court, and distribute remaining funds per the will when the court allows.
Mississippi-specific notes
Probate and appointment proceed through the county chancery courts in Mississippi. For county-specific procedures or forms, contact the chancery clerk in the county where the decedent lived. The Mississippi Judiciary site can help you locate local court information: https://courts.ms.gov/. For statutory direction on decedents’ estates, consult the Mississippi Legislature website and search Title 91 (Decedents’ Estates): https://www.legislature.ms.gov/.
Helpful Hints
- Call the bank first to confirm what documentary requirements they have for opening an estate account.
- Obtain several certified copies of the letters from the chancery court; banks and government agencies often request them.
- Apply for the EIN online for fastest processing: IRS EIN application.
- Use the estate EIN for estate banking and any estate tax filings (Form 1041). See IRS estate and trust guidance: IRS estate and trust tax information.
- Do not mix estate funds with your personal funds. Maintain separate, clearly labeled estate records and bank statements.
- Keep copies of every check, receipt, invoice, and statement. The court or beneficiaries may require a formal accounting.
- If the estate is contested, or if you face complicated assets (real estate, business interests, out-of-state property), consult a Mississippi probate attorney for guidance on filing, tax planning, and distribution.
- Locate local chancery court resources and forms at the Mississippi courts website: https://courts.ms.gov/.