ESTATE OF DECEASED INDIVIDUAL TAX ID NUMBER
As we all know it, we can never ignore the fact that the death of a loved one, therefore, it is really hard to cope with that. However, if you know what you need to do in advance, you can ease off the difficulties involved with settling your Estate of Deceased. First of all, you will need an Estate’s Tax ID (EIN) Number which allows you to open a bank account for your Estate. Before following the step by step guide to obtain your Estate Tax Id Number, let’s clarify these:
What is Estate of Deceased?
An Estate of Deceased is all the properties and assets that a person owns or controls. Estate property ownership may be in the name of the deceased, held in a partnership or through a trust. Bank accounts, life insurance, retirement accounts, real estate and all the other monies of the deceased person are included this.
My relative has just passed away. Where do I start?
After the registration of the death, you should find out if your relative made a will and who was appointed as executives.
The executor’s role is to administer the estate to obtain probate if that is necessary, close bank accounts and investments, pay off debts and inheritance tax, distribute or dispose of personal effects and sell or transfer any property. The executor is then responsible for paying legacies and distributing the estate amongst the beneficiaries named in the will. Executives are usually family or friends or a firm of solicitors.
Probate is basically proving the validity of the will through the probate registry which is a branch of the courts, to apply for probate you will need to supply details of all the assets and liabilities in the estate, in the application forms.
Do I Need an EIN number?
If someone passes away and leaves behind properties, money, other assets, the executor or administrator of the estate will need to obtain an Employer Identification Number (EIN), also called a Federal Tax ID number.
As the Internal Revenue Service (IRS) issues Employer Identification Numbers (EINs) to differentiate several business entities, you will need a nine-digit number specific to the estate.
In addition to these, if the estate runs a business after the death of the owner, securing a new Employer Identification Number (EIN) or Tax ID, reporting wages, and reporting and paying any taxes due are the responsibilities of the executor.
We are always here to help you if you need to get a Federal Tax ID number for the property of a deceased person or get a new EIN. We are working hard to get an EIN for you professionally. If you have any further question, please do not hesitate to give us a call: 1-302-384-1087,