Step-by-step guide to opening an estate bank account in Colorado with an IRS EIN

Short answer: As the appointed personal representative (executor or administrator) for your deceased parent’s estate, you generally open a bank account in the estate’s name using an Employer Identification Number (EIN) issued by the IRS for the estate. The bank will want official court paperwork showing your authority (letters testamentary or letters of administration), the death certificate, your ID, and the IRS EIN (CP 575 or the EIN confirmation). If the estate is small and property can be transferred without formal probate, banks sometimes accept alternative documentation.

Detailed answer — what you need and why

This section explains what an estate bank account is, why you frequently use an EIN, how to get one for a Colorado estate, and how to open the account at a bank.

What is an estate bank account and when you need one

An estate bank account is a checking or savings account held in the name of the deceased person’s estate (for example, “Estate of Jane Doe”). You use it to collect income and pay bills, taxes, and final expenses while the estate is being administered. Using an estate account helps separate estate funds from your personal funds and creates a clear record for accounting to beneficiaries and the court.

Why use an EIN instead of the decedent’s Social Security Number

• Banks typically require an EIN to avoid using the decedent’s SSN for ongoing estate activity.
• An EIN is required if the estate will file federal estate tax returns or estate income tax returns, or if the estate will run for some time and receive income (rental income, interest, dividends, etc.).
• Using an EIN protects privacy and helps bookkeeping for taxes and final accounting.

Who can apply for the estate EIN

Generally the personal representative (executor named in the will or administrator appointed by the probate court) applies for the estate EIN. If you have not yet been appointed but are in the process, some banks will wait until the court issues official letters of appointment; others may accept a copy of a filed petition in limited circumstances. The IRS will ask for the name and taxpayer identification number of the “responsible party” (usually the personal representative).

How to get an EIN for the estate (IRS steps)

1. Decide whether you need the EIN now. If the estate will only have a brief, simple settlement with no separate tax filings, some banks may allow use of the decedent’s SSN; but most banks prefer the EIN for estate accounts.
2. Apply online (fastest): Use the IRS online EIN application. The online system issues an EIN immediately when completed. (IRS: Apply for an Employer Identification Number (EIN) online: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online)
3. Apply by phone, fax, or mail if necessary. The IRS publishes Form SS-4 and instructions for offline applications if you cannot use the online system.
4. Keep the EIN confirmation (CP 575 notice or printed online confirmation). The bank will accept the EIN confirmation letter, a printed EIN notice, or the number from the IRS online application with proof of identity.

Documents banks typically require in Colorado

Banks set their own account-opening rules. The most common documents they request are:

• Certified copy of the death certificate
• Letters testamentary or letters of administration issued by the probate court showing your authority as personal representative
• IRS EIN confirmation (CP 575) or the EIN number with documentation
• Photo ID for the personal representative (driver’s license, passport)
• Copy of the will, if there is one (some banks request it to verify executor authority)
• Bank-specific forms: signature cards, beneficiary forms, or a bank affidavit

If the estate is small or not going through formal probate

Colorado has procedures that can allow transfer of assets outside formal probate for small estates or certain bank accounts titled jointly or with payable-on-death beneficiaries. If the estate will not go through probate, banks sometimes transfer funds to heirs with an affidavit and a death certificate. Check with the bank and consider Colorado court or statute resources for small estates or summary procedures; if you are unsure whether probate is needed, consult the probate court or an attorney.

Step-by-step checklist to open the account

1. Confirm whether you are the appointed personal representative. If not, see whether the bank will accept other proof of authority.
2. Apply for an estate EIN from the IRS and retain the confirmation (apply online for immediate issuance: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online).
3. Obtain the certified death certificate from the funeral home or vital records office.
4. Obtain certified copies of the court-issued letters testamentary/administration from the county probate court once you are appointed.
5. Call the bank in advance to confirm its required documents and whether you need an appointment or special forms for estate accounts.
6. Bring originals or certified copies of all documents and your photo ID to the bank. Request an account in the estate’s name and confirm how the bank will record it for tax purposes.
7. Keep separate records and receipts for every deposit and withdrawal from the estate account; you will need them for final accounting to beneficiaries and tax filings.

Relevant Colorado resources

Colorado’s probate law and court procedures govern appointment of personal representatives and the powers they receive from the court. For more information and forms specific to Colorado probate, consult the Colorado Revised Statutes (Title 15, Property, Wills, and Trusts) and the Colorado Judicial Branch probate resources. Helpful starting points:

• Colorado statutes — Title 15 (Property, Wills, and Trusts): https://leg.colorado.gov/content/title-15-property-wills-and-trusts
• Colorado Judicial Branch (probate information and local court contacts): https://www.courts.state.co.us/
• IRS — apply for an EIN online: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
• IRS — information for estates, trusts, and probate: https://www.irs.gov/businesses/small-businesses-self-employed/estates-trusts-and-probate

When to get a lawyer

Consider talking to an estate or probate attorney in Colorado if any of the following apply:

• The estate has complex assets (real estate, closely held business, multiple investment accounts, or significant taxes are likely).
• Family members dispute the will, beneficiary designations, or who should be personal representative.
• The bank or other institutions refuse to accept your documentation or the estate must be administered under an unusual court order.
• You need help preparing accountings or tax returns for the estate.

Helpful hints

• Call multiple banks. Different banks have different rules and some have dedicated trust and estate departments that make the process smoother.
• Keep original certified documents in a safe place. Provide certified copies to the bank when requested and retain originals for the court or other institutions.
• Ask the bank how it will report interest and income for tax purposes and whether it will send a 1099 to the estate or to beneficiaries.
• Keep meticulous records. Separate the estate’s transactions from your personal finances at all times.
• If you are unsure about probate or small estate rules in Colorado, contact the county probate court clerk for guidance or consult a local attorney.
• Apply for the EIN early once you know you will be administering the estate — banks often require it before they will open an estate account.

Common problems and quick solutions

• Bank won’t accept the EIN: Confirm you have the IRS confirmation (CP 575 or online printout). If needed, call the IRS Business & Specialty Tax Line for assistance.
• No letters from court yet: Ask the bank whether it will accept a filed petition or other temporary documentation; many banks will not, so try to get expedited court action if funds are needed to pay immediate bills.
• Account name formatting: Use a clear format such as “Estate of [Decedent’s Full Name], by [Your Name], Personal Representative” to avoid confusion.

Disclaimer: I am not a lawyer. This article is educational and does not provide legal advice. Laws change, and banks set individual policies. For legal advice about your specific situation, consult a licensed Colorado attorney or the probate court.