To open an estate account, you need three things in this order: a court document proving you have authority to act for the deceased (Letters Testamentary if there was a will, Letters of Administration if there wasn’t), an Employer Identification Number for the estate from the IRS, and a bank appointment where you present those documents along with a certified death certificate and your own photo ID. The court paperwork is what takes time; the EIN takes minutes online, and the bank visit itself is straightforward once everything else is in hand.
Why the Account Has to Be Separate
An estate account holds the deceased person’s money in the name of the estate, kept entirely apart from your personal finances. You deposit the deceased’s funds into it, pay outstanding debts and taxes from it, and eventually distribute what remains to beneficiaries.
Mixing estate money with your own is called commingling, and it’s one of the fastest ways to get removed as executor or held personally liable for losses. A probate court can void your actions, order you to reimburse the estate, or both. If the commingling looks like theft, criminal charges are on the table too. The separate account is what creates the clean paper trail that protects you.
Step 1: Get Letters From the Probate Court
No bank will open an estate account without a court document showing you have the legal right to manage the deceased person’s affairs. If there’s a will naming you as executor, the probate court issues Letters Testamentary. If there’s no will, the court appoints an administrator and issues Letters of Administration. The exact name varies by state, but every bank recognizes these documents.
To get them, file a petition with the probate court in the county where the deceased lived. You’ll submit the original will if one exists and a certified death certificate. Filing fees vary widely by jurisdiction. The court can take anywhere from a few weeks to several months to issue your letters, depending on caseload and whether anyone contests the appointment.
Ask for multiple certified copies when the letters are issued. Banks, financial institutions, and government agencies often require originals or certified copies, and you’ll go through them faster than you expect. Some banks also require letters that were issued within the last 60 or 90 days, so if yours sit unused for months you may need fresh copies.
Small Estates May Not Need Full Probate
If the estate is small enough, most states offer a simplified process, often called a small estate affidavit, that lets you collect and distribute assets without court-appointed letters. Dollar thresholds vary dramatically, from around $10,000 in some states to as high as $275,000 in others. Banks handle these affidavits inconsistently: some accept them in place of Letters Testamentary for opening an estate account, others refuse and require formal probate documents regardless of estate size. Call the bank before relying on this shortcut.
Step 2: Get an EIN From the IRS
Every estate needs its own Employer Identification Number. This nine-digit number works like a Social Security number for the estate. The IRS uses it to track the estate’s income and tax obligations, and the bank uses it to link the account to the estate rather than to you.
The fastest way to get one is the IRS online EIN Assistant at IRS.gov. Select “Estate” as the type of entity, then enter the deceased person’s name, Social Security number, and date of death, along with your own name and Social Security number as the responsible party. The tool issues the EIN immediately. It’s available Monday through Friday from 6:00 a.m. to 1:00 a.m. Eastern, Saturdays from 6:00 a.m. to 9:00 p.m., and Sundays from 6:00 p.m. to midnight.1Internal Revenue Service. Get an Employer Identification Number
If you can’t apply online, IRS Form SS-4 can be submitted by fax (about four business days) or mail (four to six weeks). There’s no reason to wait that long unless you lack internet access.
Save the EIN assignment notice the system produces. That’s the document (CP 575 if you applied online, or the letter the IRS mails back for fax and mail applications) the bank will want to see.
Step 3: Gather the Documents the Bank Will Want
With your court letters and EIN in hand, pull together the full document set before scheduling the bank appointment. Most banks require all of the following:
- Certified death certificate. Some banks accept a legible photocopy; others insist on a certified original.
- Letters Testamentary or Letters of Administration. Your court-issued proof of authority.
- Estate EIN confirmation. The IRS-issued assignment notice.
- Your government-issued photo ID. A driver’s license or passport in your name as executor or administrator.
Bring originals of everything. Banks routinely reject photocopies of court documents. Call ahead and confirm the specific requirements at the branch you plan to use; they vary between institutions and showing up short a document wastes the trip.
Step 4: Open the Account at the Bank
You’re not required to use the same bank the deceased used, though doing so can simplify transferring the deceased’s existing accounts into the estate account. When picking a bank, look at whether monthly maintenance fees apply to estate accounts, whether online banking and bill pay are offered (you’ll be moving money often), and whether a branch is convenient. Some institutions have dedicated estate or trust departments; that expertise can be worth a slightly higher fee if this is your first time serving as executor.
Schedule an appointment with a new accounts representative rather than walking in. Estate accounts need more documentation review than a standard checking account, and many branches involve someone from the back office or trust department. At the appointment, present your original documents and verify how the account is titled. It should read something like “Estate of [Deceased’s Name]” and be linked to the estate’s EIN, not your personal Social Security number. Getting either wrong creates problems with every check you deposit and every tax return you file.
You’ll make an initial deposit, then receive checks, a debit card if applicable, and online banking credentials. From that point on, every dollar related to the estate flows through this account.
FDIC Coverage Is Limited to $250,000
Estate accounts are insured under the FDIC’s single account category, not the trust account category. The FDIC treats the deceased person as the owner, and the total coverage limit is $250,000, combined with any other single accounts the deceased still held at the same bank.2FDIC. Single Accounts
Naming beneficiaries on the estate does not increase coverage the way it does for trust accounts. Beneficiaries are irrelevant for FDIC purposes when it comes to a decedent’s estate account. If the estate holds more than $250,000 in cash, split funds across multiple banks to stay within the limit at each.2FDIC. Single Accounts
Co-Executors Add Friction
If the will names co-executors, expect the bank to be cautious. Many institutions are reluctant to open estate accounts with more than one signer because conflicting instructions create liability for the bank. Those that do allow co-executors typically require all parties to be physically present to sign the account paperwork, with no remote sign-ups. If one co-executor lives out of state, that person may need to travel for the initial setup. Some banks work around this by making one co-executor the primary signer with the other’s written consent, but that arrangement isn’t universal. Clarify the policy before the appointment.
Also File IRS Form 56
Once you’re appointed, the IRS expects you to file Form 56 (Notice Concerning Fiduciary Relationship). This tells the IRS you’re authorized to act on behalf of the deceased taxpayer, to file their returns, receive their tax correspondence, and handle refunds or liabilities. Attach a copy of your Letters Testamentary or Letters of Administration and mail it to the IRS service center where the deceased filed returns.3Internal Revenue Service. Instructions for Form 56
Skipping Form 56 doesn’t carry a penalty on its own, but without it the IRS has no record of your authority. Tax notices keep going to the deceased’s last address, and you won’t hear about problems until they’ve escalated. The form takes about ten minutes.
How Long All of This Takes
The variable in the timeline is the probate court, not the IRS or the bank. Once you have your letters, the EIN takes minutes online and the bank appointment can usually happen the same week. Getting to that point takes anywhere from a few weeks to several months. If probate is contested, longer. In the meantime, the estate’s bills accumulate and assets sit in limbo, so the sooner you file the probate petition after the death, the sooner the account can open.