Opening an Estate Bank Account: What You’ll Need and What to Know

There is often a moment, usually a few weeks after a funeral, when a family member sits down with a stack of mail and realizes something uncomfortable: while the bills are still coming, there are also refund checks made out to someone who has now passed away and can no longer cash those checks, thereby tying up the money and making it impossible to use unless additional steps are taken.

That is where the estate bank account comes in. To be clear, not every estate requires an estate bank account, but many do. The estate bank account is the account through which the estate’s business gets done – where assets in the form of cash and payments are gathered, valid debts are paid, and the funds are held until the Court authorizes distribution to the beneficiaries. Personal bank accounts should not (and in many cases, cannot) be used for these purposes, and mixing estate funds with personal funds, or even worse, designated beneficiary funds, creates problems that can take month to untangle.

Opening an estate account is not complicated, but it is particular. Banks are necessarily careful with these accounts. Listed here are some things you will need to bring with you to open an estate account at a bank or credit union (please note, each institution is different, so confirm with each financial institution what is needed by calling in advance):

1. Patience

We list this first for a reason. Opening an estate account is rarely a fifteen-minute errand. Not every branch employee handles these often, and the person you are working with may need to consult a manager or the bank’s legal department. Requirements vary from institution to institution, and occasionally from branch to branch within the same institution.

Call ahead. Ask specifically what that bank requires and whether you need an appointment. Ask whether the branch can open an estate account at all — some institutions route these through specific locations or departments. Build in more time than you think you need, and expect that you may be asked for a document no one mentioned on the phone.

In Florida a larger number of courts are noting in their orders that the Letters of Administration or appointment of a Personal Representative is valid only for a year, so we are seeing more and more banks refuse to open estate accounts. This is likely because these banks, or their local branch employees do not know how or why an estate account works, but it can be frustrating. Clear this up with the bank when making your appointment. We often have clients that have to go from one bank to another until they find a bank able to assist them. We maintain a list of banks that we have had issues with, and ones that have been a pleasure to work with.

None of this is a reflection on you or on your paperwork. It is simply how the process goes.

2. The Will and the Order Admitting Will to Probate (if a Will exists)

If your loved one left a will, bring a copy of it along with the court’s order admitting it to probate. The order is what tells the bank that the will has been accepted by the Court as valid.

If there is no will, the estate is administered under Florida’s intestacy statutes, and there will not be a will or order admitting the will to bring with you – that is okay.

3. Letters of Administration and the Order Appointing the Personal Representative

These documents establish that the court has appointed a specific person to act on behalf of the estate — and that person is the only one the bank may deal with. In Florida, the appointed fiduciary is called the personal representative, and the document evidencing that authority is the Letters of Administration. If you are reading this from outside Florida, you may see the same concepts called an executor and Letters Testamentary.

Bring certified copies of all court orders mentioned here, and the bank will normally require that the certified copies have been certified in the last 60-90 days. Again, confirm this with the bank at the time you are making your appointment. A photocopy or a printout from the clerk’s website will usually be refused. Certified copies carry the clerk’s seal, and most banks will insist on seeing one — some will keep it for their file, so it is wise to obtain more than one from the clerk while you are there. We normally advise clients to get at least 2-3 certified copies of each order. The expense is minimal, and avoiding another trip to the courthouse, getting through security, and finding the correct office is a preference most clients have expressed.

4. A Certified Copy of the Death Certificate

Again, certified — with the seal from the issuing authority, not a photocopy. Order several at the outset. Between banks, brokerages, insurers, retirement plan administrators, and the county, families routinely need six to ten. Obtaining them all at once is far easier than requesting them one at a time over the following months. If you need extras they can generally be obtained from the Department of Vital Statistics offices throughout Florida. Older certificates may need to be ordered online.

5. Your Identification

The personal representative will need valid, unexpired government-issued photo identification — a driver’s license, state ID card, or passport. Some banks ask for a second form of identification, so bring a backup if you have one. Confirm this when you call to make the appointment.

6. The Estate’s Tax ID (EIN) Letter

An estate is a separate taxpayer. It cannot use the decedent’s Social Security number, so the estate must obtain its own Employer Identification Number from the IRS.

Bring the IRS confirmation letter showing the EIN assigned to the estate. Your attorney can typically help you to obtain this number and in most cases it can be issued the same day.

7. Your Personal Information

Finally, the ordinary details: your current mailing address, telephone number, Social Security number, and date of birth. The bank is opening an account with you as the signer, and standard account-opening rules apply.

A Few Practical Notes

– Keep estate funds entirely separate. Do not deposit personal money into the estate account, and do not pay personal expenses from it. Clean records protect you when it comes time to account to the court and the beneficiaries. Generally speaking, do not deposit monies received as a beneficiary from assets like life insurance, retirement accounts, or any other account on which you were listed as a pay on death/transfer on death beneficiary.
– Keep every statement. You will need them for the estate accounting.
– Do not close the account too early. Final expenses, tax matters, and unexpected refunds have a way of appearing after you think the work is finished.
– Bring the whole file. It costs nothing to carry documents you do not end up needing, and a good deal of time to come back for one you do.

Administering an estate is a real responsibility, and it arrives at the worst possible time. Most families find that the paperwork is manageable once someone explains what each document does and why the bank is asking for it. If you have been appointed personal representative — or you expect to be — and you have questions about opening an estate account or about probate administration generally, we would be glad to talk with you.

This article is provided for general informational purposes only and does not constitute legal advice or create an attorney-client relationship. Estate administration requirements vary by jurisdiction and by the particular facts of each case. Please consult a licensed attorney regarding your specific situation.