When an individual passes away, the executor of the deceased person will be responsible for managing the property as well as money of that individual.
Property, money and other assets are considered an estate and these items are eventually passed on after the individual’s death to those who are entitled to the estate, such as the beneficiaries of a will.
If you are the executor, it is important to get an Employer Identification Number (EIN), also known as a Federal Tax ID number. This Tax ID for estate option is required and will help to identify the estate.
As the executor of an estate, you will have several responsibilities.
You will need to file for an EIN for trust after death as well as collect the assets, pay and creditors and distribute the remaining estate to the beneficiaries. The estate executor acts on behalf of the deceased based on Letters Testamentary, which gives the executor legal authority as well as tax authority over the estate.
Filing for an EIN quickly helps to alleviate any problems in your role as executor of the estate. You will need to file income tax returns for the deceased, which can include years that taxes need to be filed before the individual’s death. The estate will also need to have taxes filed for it, which requires the new EIN number.
To ease into your new role, the EIN number can be obtained online. At IRS-EIN-Tax-ID.com, paperwork is offered online so that you can apply for the tax ID number from the comfort of home. The application process is simple and once completed, it will need to be submitted for approval.
Once the application is approved, the new EIN number is emailed to you and is used as a means of identification for the estate.