Every estate needs its own bank account — separate from your personal accounts.
The estate account is the financial hub of the entire probate process:
- • Life insurance proceeds, bank transfers, refunds, and sale proceeds go IN
- • Funeral costs, debts, taxes, attorney fees, and distributions to heirs come OUT
- • Every transaction is documented for the court's final accounting
Why you can't just use your personal account: Co-mingling estate money with personal funds is the fastest way to get accused of theft, removed as executor, and sued by beneficiaries. Even if your intentions are honest, the appearance of impropriety is enough to create legal problems.
"The estate account protects YOU as much as it protects the estate. Every dollar has a paper trail. Nobody can accuse you of stealing when every transaction is documented in a dedicated account."
Step 1 — Get an EIN (5 Minutes, Free)
An EIN (Employer Identification Number) is the estate's "Social Security number." Banks require it to open an estate account. You CANNOT use the deceased's SSN for the estate account.
How to get one:
Online (fastest — recommended):
- • Go to IRS.gov/ein
- • Select: "Estate" as the entity type
- • Answer the questions (deceased's name, SSN, date of death, your name as executor)
- • Receive your EIN immediately on screen
- • Print the confirmation letter
- • Available: Monday-Friday, 7am-10pm ET
- • Cost: $0 (always free — don't use third-party services that charge)
By phone:
- • Call IRS: 1-800-829-4933
- • Hours: Monday-Friday, 7am-7pm local time
- • EIN issued during the call
By mail (slowest):
- • File IRS Form SS-4
- • Mail to the IRS address on the form
- • EIN arrives in 4-6 weeks
"Do this BEFORE going to the bank. The bank won't open an estate account without an EIN. It takes 5 minutes online. Don't pay a third-party website $50-$100 to do what the IRS does for free."
Step 2 — Gather Your Documents
Bring ALL of these to the bank:
- ☐ The estate's EIN (printed confirmation from IRS.gov)
- ☐ Certified death certificate (original or certified copy)
- ☐ Letters Testamentary or Letters of Administration (certified copy from probate court)
- ☐ Your government-issued photo ID (driver's license or passport)
- ☐ Your Social Security number (the bank needs this for the account signer)
- ☐ The deceased's full legal name and SSN (for bank records)
- ☐ Initial deposit (some banks require $25-$100. Use your own funds and reimburse yourself from the estate later.)
If you don't have Letters Testamentary yet: Some banks will open a basic estate account with just the death certificate and EIN — but won't allow transfers from the deceased's accounts until Letters are presented. Call ahead and ask.
Step 3 — Visit the Bank
Which bank to use:
- • The deceased's bank is often easiest — they already have the deceased's account records and can process transfers quickly
- • Your own bank works too — especially if you're more comfortable there
- • Any major bank (Chase, Bank of America, Wells Fargo, local credit union) can open an estate account
- • Call ahead: "I need to open an estate checking account. What do I need to bring?" — this confirms their specific requirements and avoids wasted trips
What to say at the bank:
What the bank does:
- Verifies your documents
- Opens a checking account titled: "Estate of [Deceased's Full Name]" or "[Your Name], Executor of the Estate of [Deceased's Full Name]"
- Issues checks and/or a debit card for the account
- Sets up online banking access (recommended — makes tracking easier)
- Provides account number and routing number
What to request:
- ☐ Checks (for paying estate expenses — some creditors require checks)
- ☐ Debit card (for smaller purchases and payments)
- ☐ Online banking access (for tracking and transfers)
- ☐ Monthly statements (keep ALL statements for the final accounting)
Time at the bank: 20-30 minutes. Bring patience — estate accounts are less common than personal accounts and the banker may need to consult a supervisor.
Step 4 — Set Up Your Record-Keeping System
From this moment forward, EVERY dollar that flows through the estate account must be documented. The court requires a final accounting — a complete record of every deposit, every withdrawal, and every transfer.
Simple tracking method — a spreadsheet:
| Date | Description | Deposit (In) | Payment (Out) | Balance |
|---|---|---|---|---|
| 4/15/2026 | Opening deposit (personal funds — to reimburse) | $100 | $100 | |
| 4/18/2026 | Transfer from deceased's Chase checking | $15,420 | $15,520 | |
| 4/20/2026 | Life insurance proceeds (MetLife) | $250,000 | $265,520 | |
| 4/22/2026 | Funeral home — Green Hills Mortuary | $8,200 | $257,320 | |
| 4/25/2026 | Attorney retainer — Smith & Associates | $5,000 | $252,320 | |
| 5/01/2026 | May mortgage payment | $1,450 | $250,870 |
Keep EVERY receipt. Staple receipts to a printout of each month's statement. File chronologically. This documentation is your defense if any beneficiary ever questions your management.
Tools:
- • Google Sheets or Excel (free, simple, printable)
- • Quicken or QuickBooks (more powerful, tracks categories automatically)
- • A paper ledger (old school but works — just be meticulous)
"The ledger is your proof that you did your job honestly. When you file the final accounting with the court, this spreadsheet IS the accounting. No ledger = no defense against accusations."
What Flows Through the Estate Account
💰 MONEY IN (deposits)
- • Transfers from deceased's individual bank accounts
- • Life insurance proceeds (if payable to the estate)
- • Final paycheck and accrued benefits
- • Tax refunds
- • Sale proceeds (house, car, property)
- • Rental income
- • Debts owed TO the deceased
- • Interest earned on the account
💸 MONEY OUT (payments)
- • Funeral and burial expenses
- • Attorney fees
- • Court filing fees and probate costs
- • Executor compensation
- • CPA / accountant fees
- • Ongoing bills (mortgage, utilities, insurance)
- • Creditor claims (in priority order)
- • Federal and state taxes
- • Distributions to beneficiaries (LAST)
"Everything goes through ONE account. Not your personal checking. Not the deceased's old account. The ESTATE account. This separation is what makes the final accounting clean and defensible."
Common Questions Executors Ask
"Can I pay myself back for funeral costs I already covered?"
Yes. Write a check from the estate account to yourself with a memo: "Reimbursement — funeral expenses paid [date]." Attach the funeral home receipt. This is legitimate and expected — funeral costs are the #1 priority expense.
"Should I get a debit card for the estate account?"
Yes — for convenience. Small estate expenses (certified copies, postage, parking at court) are easier with a debit card. But use checks for large payments (attorney, creditors, distributions) — they create a clearer paper trail.
"How much should I keep in the account?"
Keep enough to cover 3-6 months of ongoing expenses (mortgage, utilities, insurance, attorney fees). If the estate has significant assets, park extra funds in a high-yield savings account linked to the estate checking — the interest belongs to the estate.
"Can I invest estate money?"
The executor has a fiduciary duty to manage estate assets prudently. Short-term, low-risk investments (high-yield savings, Treasury bills, CDs) are appropriate. Stocks, crypto, or speculative investments are NOT — unless the will specifically authorizes them. If you lose estate money on a bad investment, you may be personally liable.
"What if the estate doesn't have enough money to open an account?"
Most banks require $25-$100 to open. Use your own money. Document it as a personal loan to the estate. Reimburse yourself from the first estate deposit. If the estate has NO assets at all, consult the probate attorney — a formal account may not be necessary.
"When do I close the estate account?"
After ALL debts are paid, ALL distributions are made, ALL taxes are filed, and the court approves the final accounting. Transfer any remaining balance to the final beneficiaries. Close the account. Keep records for 7 years.
4 Account-Related Errors That Get Executors in Trouble
❌ 1. Using your personal account instead of an estate account.
Even one estate deposit into your personal account creates the appearance of co-mingling. Open the estate account FIRST. Always.
❌ 2. Making cash withdrawals without documentation.
Cash leaves no paper trail. If you withdraw $500 cash from the estate account, you need a receipt for what you spent it on. Unexplained cash withdrawals = suspicion.
❌ 3. Paying yourself executor compensation without court approval.
In some states, you need court approval before taking your fee. In others, you document it in the final accounting. Check your state's rules. Paying yourself without authorization is a removal-worthy offense.
❌ 4. Keeping the account open too long after everything is distributed.
An open estate account with a balance means the estate isn't closed. Close it promptly after final distributions. An account sitting open for years invites questions about why the estate isn't settled.