An estate is equal to all property and money owned and controlled by an individual. An estate can be owned by a single individual in his or her name, held in a partnership, a joint agreement, or in a trust. However, in addition to everything owned, an estate also carries the responsibility of debt, or what the person, partnership, or agreement owes. Most estates use a tax ID number to track these tax obligations. In the case of death, the tax ID number for estate of deceased will need to be replaced only if you represent an estate that operates a business after the owner’s death.
How to Get an Estate Tax ID
When someone dies, their property and assets become their estate. Income generated by the estate (dividends or stocks and bonds, for example) is subject to taxes. The Internal Revenue Service (IRS) requires estates to have a tax ID number, more commonly referred to as an Employer Identification Number (EIN) because the owner of the estate and the estate itself are recognized separately after death.
The individual has a Social Security Number; therefore, the estate must have its own identification.
The easiest and fastest way to obtain an estate tax ID is to apply online. Online applications are processed within 24 hours and delivered right to your inbox. You can also apply via phone or mail, but these methods can take up to two weeks to be completed.
Do You Need a New Tax ID Number For Estate of Deceased?
An estate tax ID will stay with the estate in perpetuity and will not need to be replaced unless one of the following circumstances arise:
In these two instances you will need to get a new EIN number for the estate.