Estate Checking Accounts 101

Jun 21 2011

Estate Checking Accounts 101

Estate checking accounts primarily serve the purpose of being used for pooling all the assets of a deceased individual so that it can be used for settling all of his or her financial obligations before being divided to his or her beneficiaries. An estate checking account can only be opened by the authorized executor of the estate and the process of opening one is generally quick and easy, especially if all the necessary documents and information are on hand. If you are the authorized executor for a relative or a friend, here are the steps that you can follow for opening an estate checking account.

The first thing you need to do would be to get a taxpayer identification number from the IRS that is issued under the name of the estate. This can be done either through visiting the website of the IRS online or by mailing the appropriate form which would be the IRS Form SS-4 to the address that is indicated for your state.

You should then meet up with the representative of the bank where you are planning to open the account. Make sure to bring along a copy of the death certificate of the owner of the estate as well as a letter written by the estate attorney which lists you as the executor of the state. You may also need to bring along your proof of identification and the taxpayer identification number that you have obtained earlier.

The checking account should be opened under name as the estate executor. The process of opening it is generally the same as opening a regular checking account. You would also need to provide your personal information but opening an estate bank account would require you to enter information about the estate as well.

Once the estate checking account has been opened, make sure that all of the cash accounts in the estate are transferred into it before using it to take care of all the expenses and dividing the remaining balance among the beneficiaries.

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