Detailed Answer

This section explains, step-by-step, how a personal representative or executor typically opens an estate bank account in South Carolina using an Employer Identification Number (EIN) issued by the IRS. This is a practical guide based on common probate practice. This is not legal advice. For questions about your specific situation, consult a South Carolina probate attorney or the probate court for the county where the decedent lived.

1. Confirm who has legal authority to open an estate account

Only the person with legal authority to manage the decedent’s estate may open an estate account. That is usually the personal representative (also called executor or administrator) appointed by the probate court. In South Carolina, the probate process and appointment of a personal representative are governed by the South Carolina Probate Code (Title 62). For an overview of the state statute governing probate and fiduciary duties, see the South Carolina Code, Title 62: https://www.scstatehouse.gov/code/title62.php.

2. Obtain a federal EIN for the estate

The estate uses an EIN (not the decedent’s Social Security number) for financial accounts and for any estate income tax filings. Apply online or by mail/fax using IRS instructions for estates. Helpful IRS links:

• Apply for an EIN online
• Estate of a decedent (IRS guidance)
• Form SS-4 (Application for EIN)

When applying you’ll provide: the decedent’s name and Social Security number, date of death, the estate name (commonly “Estate of [Full Name], Deceased”), the name and SSN of the personal representative, and the mailing address for the estate. After processing you will receive an EIN confirmation (CP 575 or online confirmation) that the bank will accept as proof of the estate’s tax ID.

3. Get the documents the bank will require

Different banks have different policies, but most South Carolina banks commonly require:

• Certified copy of the death certificate.
• Letters testamentary or letters of administration issued by the South Carolina probate court (proof of appointment). Contact the probate clerk where the decedent lived for the exact process and to obtain certified copies. See the South Carolina Judicial Branch: https://www.sccourts.org/.
• Certified copy of the will (if applicable) or court order appointing the administrator.
• Government-issued photo ID for the personal representative.
• IRS EIN confirmation (CP 575 or other documentation you received).
• Bank account application forms and the bank’s fiduciary signature card.

Tip: get several certified copies of the letters and death certificate. Banks and other institutions often require originals or certified copies.

4. Visit the bank and open the account

Call the bank first to confirm its list of required documents and to schedule an appointment. When you open the estate account, most institutions will want the account name in this style: “Estate of [Full Name], Deceased, [Your Name], Personal Representative.” Provide the estate’s EIN for the tax identification field. Keep estate funds separate from your personal funds—do not commingle.

5. Use the estate account for estate business only

Use the estate account to collect estate assets (e.g., cash, proceeds from sale of property), pay creditors, pay final bills and taxes, and distribute funds to beneficiaries after the court allows distribution. Maintain clear records and bank statements. If the estate generates over a minimal amount of taxable income, you may need to file Form 1041 for the estate. See: IRS Form 1041.

6. When probate is not required or when alternatives apply

Not every asset must pass through probate or an estate account. Common exceptions include assets held jointly with rights of survivorship, payable-on-death (POD) designations, life insurance proceeds with a named beneficiary, and certain small estate procedures. South Carolina may have streamlined procedures for small estates; check with the local probate clerk or consult Title 62 for statutory details: South Carolina Code, Title 62.

7. Consider tax and reporting obligations

The estate’s EIN is used on estate-level tax filings and for reporting interest/dividends the estate receives. The decedent’s final personal income tax return (Form 1040) still must be filed for the part of the year before death. If the estate earns income after death above filing thresholds, the estate may need to file Form 1041. See the IRS guidance noted above and consider speaking with a tax professional.

8. When to ask for professional help

If the estate is complex, if there are disputes among heirs, if you are unsure whether probate is required, or if significant tax issues exist, consult a probate attorney licensed in South Carolina. The probate clerk can answer procedural questions about opening an estate and obtaining letters, but only an attorney can give legal advice about strategy and fiduciary duties.

Important statutory resource: For probate law and duties of fiduciaries in South Carolina, see the South Carolina Code, Title 62 (Probate, Estates, and Fiduciaries): https://www.scstatehouse.gov/code/title62.php. For local procedures and forms, check the probate court (via the South Carolina Judicial Branch): https://www.sccourts.org/.

Reminder: This is general information and not legal advice. Rules and bank policies vary. Consult a South Carolina probate attorney or the local probate clerk for guidance specific to your situation.

Helpful Hints

• Call the bank first. Ask which documents they require to open an estate account and whether they prefer certified copies or originals.
• Apply for the estate EIN early. You can often get the EIN online from the IRS the same day.
• Get multiple certified copies of the death certificate and the letters of appointment—banks and other institutions usually require them.
• Name the account clearly: “Estate of [Decedent’s Full Name], [Your Name], Personal Representative.” Include the estate EIN as the tax ID.
• Keep detailed records: deposits, payments to creditors, attorney fees, distributions to beneficiaries, and receipts for all transactions.
• Don’t mix estate funds with your personal funds. Commingling can create personal liability for the personal representative.
• Keep the probate court informed and obtain court approval before making distributions if the estate is under formal administration.
• If the estate has little or no probate assets, investigate whether South Carolina’s small estate procedures apply before starting formal probate. Ask the probate clerk for local guidance.
• For tax questions about filing the decedent’s final return or the estate income tax return, consult a tax advisor or CPA experienced with estates or see the IRS Form 1041 guidance: https://www.irs.gov/forms-pubs/about-form-1041.
• If beneficiaries or creditors dispute actions, consider getting legal counsel promptly to avoid personal liability as a fiduciary.

Final reminder: This article is informational only and does not create an attorney-client relationship. It is not legal advice. For legal advice about a specific estate in South Carolina, contact a South Carolina-licensed probate attorney or the local probate court.