Obtaining an EIN for an Estate or Trust

When administering an estate or trust, one of the first and most important steps is obtaining an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). An EIN is required to properly manage tax filings, open estate or trust bank accounts, and carry out fiduciary duties in compliance with federal law.

What Is an EIN?

An Employer Identification Number (EIN) is a unique nine-digit number issued by the IRS to identify an estate or trust as a separate tax entity. Even though it is commonly associated with businesses, an EIN is also required for most estates and many trusts once a person has passed away.

After death, an individual’s Social Security number should no longer be used for estate-related financial matters. Instead, the estate or trust must operate under its own EIN.

When Is an EIN Required for an Estate or Trust?

An EIN is generally required when:

• An estate or trust earns income after the decedent’s death

• A bank or financial institution requires an EIN to open an estate or trust account

• Federal or state income tax returns must be filed for the estate or trust

• Assets must be collected, managed, or distributed by a personal representative or trustee

Most probate estates and irrevocable trusts require an EIN. Some revocable living trusts may not require an EIN during the grantor’s lifetime, but typically will require one after the grantor’s death.

Who Is Responsible for Obtaining the EIN?

The responsibility for obtaining an EIN typically falls on the:

• Personal representative or executor of an estate, or

• Trustee of a trust

This fiduciary is responsible for ensuring that the EIN is obtained promptly and used correctly for all estate or trust financial matters.

How to Obtain an EIN from the IRS

The IRS provides a free online application process for obtaining an EIN. In most cases, an EIN can be issued immediately upon completion of the application.

You can apply directly through the IRS website here:
https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

Applicants will need to provide information such as:

• The decedent’s name and date of death (for estates)

• The name of the estate or trust

• The fiduciary’s name and Social Security number

• The type of entity being created (estate or trust)

Common Mistakes to Avoid

Errors in obtaining or using an EIN can delay administration and create tax complications. Common mistakes include:

• Using the decedent’s Social Security number instead of an EIN

• Applying for multiple EINs unnecessarily

• Listing the wrong fiduciary or entity type

• Failing to obtain an EIN before opening financial accounts

Proper legal and tax guidance can help avoid these issues and ensure compliance.

How an Attorney Can Help

An experienced estates and trusts attorney can assist with determining whether an EIN is required, obtaining the EIN correctly, and coordinating tax and administrative obligations. Legal counsel can also help ensure that fiduciaries meet their duties and avoid personal liability during estate or trust administration.

Need Assistance with Estate or Trust Administration?

Smith, Gildea & Schmidt regularly advises executors, personal representatives, and trustees on estate and trust administration matters, including tax compliance and fiduciary responsibilities. If you have questions about obtaining an EIN or administering an estate or trust, our attorneys can help guide you through the process.