How to Obtain an EIN for a Texas Estate

A Texas estate needs its own EIN once it has to file something in its own name, most commonly a federal income tax return once its gross income reaches $600 in a tax year. The fiduciary, the person legally in charge of the estate, is the one who applies. Texas probate law decides who that person is; federal tax law decides whether a number is needed at all.

What an EIN Is and Why an Estate Needs One

An Employer Identification Number (EIN) is the nine-digit tax number the federal government issues to entities that are not individual people. Once someone dies, their estate becomes a separate taxpayer from the person who died, and federal law requires the estate to use its own number in place of the decedent’s Social Security number on anything it files, including its income tax return and any other document that reports income the estate earns after death. 

When a Texas Estate Actually Needs an EIN

Not every estate does. The clearest trigger is a federal income tax return: an estate must file one for any tax year its gross income reaches $600, and that return belongs to the fiduciary, not the beneficiaries. A small estate with no income after the death may not need a number at all, which is a question worth running by an attorney or CPA rather than guessing.

Who Can Apply for an Estate’s EIN

The right person to apply is the fiduciary who already has legal authority over the estate, called the responsible party on the application: the person who actually controls the estate’s assets. Under IRS rules, that has to be a real person with their own Social Security number or Individual Taxpayer Identification Number (ITIN), not a law firm or accountant acting on the estate’s behalf. In a Texas probate, the responsible party is usually the executor or administrator the court appointed, and the letters testamentary the court issues are the proof of that authority.

How the Texas Probate Route Changes Who Applies

Texas probate follows three common routes, and two of them appoint no one at all, which changes who is even available to sign the application.

An independent administration is the ordinary route, and it does appoint someone: a court order names an independent executor, who then runs the estate with little court oversight.

A muniment of title works differently. The court can admit a will to probate this way when it is satisfied the estate owes no unpaid debt beyond a lien on real estate, or finds there is no other reason administration is needed. Because the court is finding that no administration is necessary in the first place, no executor is appointed and nobody receives letters testamentary. The court’s order admitting the will is what serves as proof that title passed to the people named in it, not the will operating on its own.

A small estate affidavit appoints nobody either. Under Section 205.001 of the Texas Estates Code, the heirs of someone who died without a will, called distributees, can take the estate directly once at least 30 days have passed with no appointment pending or granted, as long as the estate stays under $75,000, not counting the homestead and exempt property. 

How to Apply for the Estate’s EIN

The responsible party applies by filing Form SS-4 with the IRS, either online through the IRS website or by mail or fax. Applying online is fastest: if the responsible party is available to complete it during the IRS’s online hours, the EIN issues immediately. Mail and fax applications take longer to process.

The online application walks the responsible party through selecting “estate” as the entity type, entering the decedent’s information and date of death, then the fiduciary’s own information and the estate’s mailing address. One detail worth getting right: the estate’s tax year is generally set to end in the same month as the date of death, which can mean filing one income tax return instead of two.

Timing follows the Texas appointment, not the tax calendar. Applying before the court issues letters means signing for authority that has not yet been granted.

What Happens After the Estate Has Its EIN

Once the estate has its number, that number goes on everything it files, starting with its federal income tax return. The fiduciary tests the filing threshold every year the estate stays open, files the return under the estate’s own number, and pays the tax from estate funds. Income the estate earns after the death belongs on the estate’s number, not the decedent’s.

Does a Texas Bank Require an Estate EIN to Open an Account?

Most banks ask for one before opening an estate account, even if the estate will not end up owing federal income tax. Getting the EIN early avoids a delay at the bank later, even though this is a bank practice rather than a legal requirement.

Can an Estate Apply for More Than One EIN?

No. The IRS allows one EIN application per responsible party per day, and an estate only ever needs the one number for its entire administration.

Getting Help With a Texas Estate

Whether your estate needs its own EIN, and who is actually allowed to apply for it, both come down to how the estate was probated. The court’s order is the paper to find first, since it shows whether anyone was appointed at all. Our attorney Cory Krueger and our team at Hensley & Krueger, PLLC can read the court file with you and tell you where things stand. Contact us or call 713-850-9700.