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What should I do to get an EIN for my daughter's retirement account?

What should I do to get an EIN for my daughter's retirement account?

Q: Do I need an EIN when someone dies?

Yes, you typically need an EIN when someone dies, especially if you are the executor or administrator of the estate. The EIN is necessary for filing taxes on behalf of the deceased and managing any income generated by the estate. It helps in handling the financial aspects of the estate legally and efficiently.

Q: How much does it cost to get an EIN for an estate?

Obtaining an EIN for an estate is free. You can apply for it directly through the IRS, either online or by submitting a paper form. There are no fees associated with the application process. However, if you seek assistance from an attorney or tax professional, there may be fees for their services.

Full question:

My daughter died without making a will and now I have to get an EIN # in order to receive her retirement savings account? Since I would prefer not to set up an estate, what do I have to do?

Category: Wills and Estates
Subcategory: Small Estates Affidavit Law
Date: 04/07/2025
State: Pennsylvania

Answer:

You may need to open an estate through the probate court to transfer ownership of your daughter's property. However, in Pennsylvania, you might have a shortcut available through a "small estate affidavit" statute. This option allows you to avoid opening a full estate, but it only works under certain conditions. It’s advisable to consult a local attorney to determine the best course of action based on your specific situation. If cost is a concern, consider asking the lawyer for a flat fee for their services instead of hourly billing. You can also compare fees from different lawyers to find the best option.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Why does an executor need an EIN number?

An executor needs an EIN (Employer Identification Number) to manage the deceased person's estate, including filing tax returns and opening an estate bank account. The EIN serves as a unique identifier for the estate, similar to how a Social Security number identifies an individual. It is required for any estate that generates income or needs to file a tax return. Without it, the executor cannot properly handle financial matters related to the estate.

What does the IRS need when someone dies?

When someone dies, the IRS requires the deceased's final tax return, which must be filed for the year of death. Additionally, if the estate generates income, an estate tax return may be necessary. The executor or administrator will need to gather financial documents, including income statements and deductions, to complete these filings. It’s important to ensure all tax obligations are met to avoid penalties.

Do you have to set up an estate account after someone dies?

Yes, it is generally advisable to set up an estate account after someone dies. This account helps manage the deceased's assets and expenses during the probate process. It allows the executor to deposit funds, pay debts, and distribute assets to beneficiaries. However, if the estate qualifies for a small estate affidavit, this may simplify the process and potentially avoid a full estate account.

Do you need an EIN for a deceased person?

Yes, an EIN is needed for a deceased person’s estate if it generates income or if an estate tax return is required. The EIN allows the executor to manage the estate’s financial affairs, including filing tax returns and opening a bank account for the estate. It is essential for ensuring proper management of the deceased's financial responsibilities.

Do I need an EIN when someone dies?

How much does it cost to get an EIN for an estate?

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