ESTATE OF DECEASED INDIVIDUAL | EIN APPLICATION
Estate of Deceased Individual is a legal entity that is created as the outcome of an individual’s death. The administrator of the deceased person’s money and property has the obligation to pay the decedent’s taxes and debts, as well as to distribute his/her money to the people entitled to it. The assets of the deceased individual may include money, land, buildings, furniture, automobiles and other personal belongings.
WHAT ARE THE OBLIGATIONS OF A PERSONAL ESTATE REPRESENTATIVE?
The trustee or personal representative primary responsibilities are to gather the grantors assets and property, distributing notices to all concerned parties, collecting claims made against the estate and paying for the ones that are valid for any debts owed by the estate, and distributing the assets and property contained within the estate to the beneficiaries dictated by the will or trust.
WHAT IS A POWER OF ATTORNEY?
A power of attorney grants one or more persons the power to act on another’s behalf. With a valid power of attorney, a representative can legally act on the behalf of the grantor. Some of the main functions of a power of attorney may include making legal decisions on behalf of the grantor when they are not able to be physically present or are incapacitated. A good example of this would be if the grantor needed to sell a piece of property, but could not be physically there for the closing.
CAN A TRUST HELP WITH ESTATE TAXES?
For most people a trust will not help with estate taxes as the current federal threshold for estate taxes is $11 million. For high net worth individuals, a trust can and usually is beneficial to avoid taxation and to benefit heirs. It is important to remember that the trust that is setup for estate taxes must be an irrevocable trust to meet all requirements.
WHAT IS AN EIN NUMBER?
The Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number (Tax ID Number), is a unique 9 digit number assigned from the IRS. The digits of an EIN are formatted as follows: XX-XXXXXXX. Entrepreneurs and businesses use an EIN to conduct business activities that would otherwise require a Social Security Number (SSN).
DOES AN ESTATE OF A DECEASED INDIVIDUAL NEED AN EIN?
The administrator or executor of the deceased person’s estate will need to open a bank or investment account, so he can write checks in order to pay the deceased person’s final bills and court costs. Eventually distributing the decedent’s money to the people entitled to it. Also, the survivors who inherit the estate should pay the taxes pending on the estate. For these reasons it is required to obtain an EIN.
HOW TO GET AN EIN NUMBER FOR AN ESTATE OF A DECEASED INDIVIDUAL:
Apply now and obtain an Employer Identification Number (EIN) by filling out the EIN Online Application form. It is Easy, Fast and Secure. After you complete the online process you will receive your EIN together with important information within 1-2 business days.