Disclaimer: This is educational information only and is not legal advice. For advice about your situation, consult a licensed Montana attorney.
Detailed Answer — Setting up an estate bank account in Montana using an IRS EIN
After a parent dies, the person responsible for administering the parent’s estate (the personal representative, executor, or administrator) normally must set up an estate bank account to collect and manage estate funds, pay liabilities, and distribute assets to beneficiaries. Below are clear, practical steps that reflect common Montana practice and the rules that typically apply.
1. Determine whether you need probate or a simplified procedure
Montana law provides formal probate procedures and some simplified methods for handling a decedent’s assets. Whether you open a formal estate account usually depends on the type and value of assets and whether a representative has been appointed by the district court. If the estate will be probated or you are the court-appointed personal representative, you will typically need an estate account. For general Montana probate information see the Montana Code (Probate law) and Montana courts self-help resources: https://leg.mt.gov/bills/mca/title_72/ and https://courts.mt.gov/selfhelp
2. Obtain a certified copy of the death certificate
Most banks require one or more certified death certificates to close or transfer accounts and to open an estate account.
3. Get the court document that proves your authority
If the estate goes through probate, the court will issue Letters Testamentary (if there is a will) or Letters of Administration (if no valid will). Banks will usually require these letters to open an account in the estate’s name. If Montana’s simplified or small-estate procedures apply, banks may accept a small-estate affidavit or other documents instead of formal letters. Check with the local district court clerk or an attorney about the correct papers for your county.
4. Apply for an Employer Identification Number (EIN) for the estate
An estate is a separate taxpayer for federal tax purposes. The Internal Revenue Service issues an EIN for the estate that the bank will accept in place of the decedent’s Social Security number. You can obtain an EIN for an estate using Form SS-4. The IRS provides an online application and instructions here: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
Key points when obtaining the EIN:
- Use the estate’s name (for example: “Estate of Jane Doe, deceased”).
- List the personal representative as the responsible party.
- The IRS typically issues an EIN immediately if you apply online; you can also apply by fax or mail if necessary.
5. Visit the bank to open the estate account
Bring the following to the bank:
- Certified copy of the death certificate
- Letters Testamentary or Letters of Administration (or other court authorization or small-estate documents)
- IRS EIN for the estate
- Personal identification for the personal representative
- Copy of the will (if there is one) — some banks ask to see it
Ask the bank to open the account in the estate’s name (for example: “Estate of John Q. Public, by Jane Doe, Personal Representative”). Keep the estate account separate from your personal accounts. Do not deposit the deceased person’s post-death income into the decedent’s personal accounts.
6. Use the estate account properly
Deposit estate receipts (sale proceeds, rents, final paychecks, refunds) into the estate account. Pay estate expenses—funeral costs, taxes, administration expenses, and creditors—from the estate account. Keep detailed records and preserve bank statements; the court and beneficiaries may require an accounting.
7. Tax and reporting basics
You may need to file a federal estate income tax return (Form 1041) for income earned by the estate after the decedent’s death. The estate’s EIN must be used on federal tax returns for the estate. Montana does not have a separate statewide estate tax, but you should confirm current Montana tax rules (for state filing obligations) and consider federal estate tax thresholds. Consult the IRS and Montana Department of Revenue or an accountant for filing details.
8. Close the estate account after distribution
When estate administration is complete and beneficiaries are paid, transfer any remaining funds according to court orders or the terms of the will and close the account. Provide a final accounting if the court or beneficiaries request one.
Common bank requirements and variations
Bank policies vary. Some banks will open an estate account on an affidavit for small estates without court letters; others will insist on formal letters. Call the specific branch in advance to confirm required documents and procedures.
Statutes and resources
- Montana Code Annotated (probate provisions): https://leg.mt.gov/bills/mca/title_72/
- Montana Courts self-help and probate forms (general guidance and local procedures): https://courts.mt.gov/selfhelp
- IRS — Apply for an EIN online (Form SS-4 instructions): https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
If you plan to act as personal representative and you are unsure whether probate is required or how to proceed, consider talking with a Montana probate attorney. An attorney can help you avoid common errors and make sure court requirements are met.
Helpful Hints
- Contact the bank before you go. Ask exactly what documents they require to open an estate account in Montana.
- Request multiple certified death certificates early — you will need them for banks, government agencies, and other institutions.
- Keep separate records. Use the estate account only for estate funds and expenses; avoid commingling with personal funds.
- Keep a list of assets, account numbers, and contact information for institutions holding the decedent’s assets.
- Save all receipts, invoices, and bank statements. The court or beneficiaries may ask for an accounting of how estate funds were handled.
- If the estate looks complex (real property, business interests, large tax exposure, out-of-state assets), consult a Montana attorney experienced in probate and estate administration early.
- Remember deadlines. Probate timelines and tax filing deadlines can affect what you must do and when.
Need help finding an attorney? Contact your local Montana bar association or legal aid clinic for referrals to lawyers who handle probate and estate administration.