Estate of Deceased Individual

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When someone dies, the deceased person’s executor, also called an administrator, is responsible for managing the money and property of the deceased. Money, property, and other assets are commonly referred to as an estate, which upon a person’s death passes on to the people entitled to it, typically heirs, or individuals called beneficiaries.

The responsibilities of an estate executor are to collect all the decedent’s assets, pay, and creditors and distribute the remaining estate to heirs or other beneficiaries.

A probate court authorizes the estate executor of the deceased to act on the deceased’s behalf with what’s known as Letters Testamentary, granting the executor legal and tax authority over the estate.

The executor will file income tax returns for the deceased, including any years the deceased failed to file taxes before death. They will also need to file taxes for the estate, which will require a Federal Tax ID.

Should an Estate of a Deceased Individual Apply for a Federal Tax ID?

In the event that someone dies and leaves behind money, property, or other assets, the administrator, or executor of the estate, will need to obtain what is known as an Employer Identification Number (EIN), also called a Federal Tax ID number.

The Internal Revenue Service (IRS) issues EINs to distinguish various business entities; it will be a nine-digit number specific to the estate.

Moreover, if the estate operates a business after the owner’s death, the estate executor is required to secure a new Employer Identification Number (EIN) or Tax ID, report wages or income using the new EIN, and report and pay any taxes due.

In the event that you need to secure a Federal Tax ID number for the estate of a deceased individual, or obtain a new EIN, we’re here to help.

Our online forms are quick to read and easy to navigate, and we work hard to get your EIN to you quickly and professionally.