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I have recently been to my deceased fathers bank with letter of administration and they wrote me 2 checks made out to the estate... I don't understand this... why couldn't they just have been made out to me... then told me I have to now get a tax id number for the funds... can anybody explain this to me?
I guess the estate isn't settled yet, or they haven't been informed by the attending attorney that it has. Were you his sole beneficiary, or were there multiple beneficiaries? If many, then I can understand why the cheque was made out to 'estate of... '. The Id no. is actually called an EIN no. below is information that explains how you go about getting this number to administer your father's estate. You are obviously the executrix, right ?
Visit the IRS website (irs.gov) to file an application for an EIN for the estate online. Have the necessary information, such as your contact information, social security number (both the filer's and the deceased's) and the name on the estate on hand.
It is actually called a EIN number which is used for estate tax. This is from e.How website and explains how you go about getting this number to administer your fathers estate funds. You are obviously the executrix, right ?
File the appliation online. The IRS used to require a form SS-4 filing to obtain an EIN for an estate or business. The EIN can now be obtained by a quick, simple application that is completed online at the IRS' website. To begin the application, copy and paste this link into your browser's URL window:
https://sa1.www4.irs.gov/modiein/individual/index.jsp
Complete the entire application in one session. Do not let the program sit dormant for more than 15 minutes, or you will be logged out, and you will have to reapply.
Receive the EIN for the estate upon completion of the application. Take note of the EIN, and keep it in a safe place. The EIN can be used immediately after it is issued.
Tick
I was appointed administrator by the court and it is only me and my sister who are entitled to funds... I not really sure about any of this and how it works... if I set up an estate account would I be able to write checks for the both of us and that's it?. or do I need to do other things... really confused here
There must have been an attorney appointed by your father when he wrote his will. I would suggest you consult the attorney regarding any confusion you may have regarding your fathers estate.Quote:
Originally Posted by kathy0326
I am confused here too. Why aren't the funds being transferred directly into both of your accounts if you and your sister were beneficiary and the estate is settled?
Tick
Yes, I am confused too!! There was no will... I was appointed administrator... I brought the letter and the death certificate with me to bank and they issued me the checks made out to the estate... I asked why and they said they had to... I don't know anything about this, having never done it before so I am not sure what to do... I brought the checks to my bank and they told me I need a ein number... how will I be able to access funds?
Kathy, you are going to have to get an attorney to sort this out for you. It may cost a few bucks, but believe me it will be worth it to you in the long run. Look what is happening now, you are asking here because you are confused and worrying. We are pleased to help but truth be told, we can help with advise which points someone in the right direction, and I am pointing you to an attorney who can sort this out for you, so you can get your money.Quote:
Originally Posted by kathy0326
Good luck, but don't consider this the final word, there are many good legal people on here who may have some other ideas on what you should do. So don't throw the baby out with the bathwater, so to speak. Keep checking back to us, okay.
Kathy: as administrator you are responsible for handling the financial affairs of the estate. As long as the estate is not settled your late father's assets belong to the estate, not to you. If you had taken his bank account and simply put it in your own account that would be considered theft. As administrator your duty is to open a checking account for the estate, and transfer your father's assets into it. As administrator you are then legally able to write checks from the estate account to pay his debts, pay the cost of his funeral, etc. The estate needs its own EIN so that you can file a final income tax return next April on behalf of the estate. Eventually when the estate settles (after you've filed that last tax return) you will close out the estate account and distribute the remaining assets to the heirs, in accordance with state law for intestate estates (i.e. for estates of people who die without having a will). Hope this helps.
What ebaines said. An administrator has a fiduciary responsibility towards the estate. They are required to create an accounting of any transactions with respect to the estate. As ebaines said the money is not your until the estate is settled. Until that time any money has to be passed through the estate. At this time the estate is a living entity. As such the estate has to make the transactions. As administrator you are entitled to authorize the transactions the estate enters into.
Yes, if there are bills in the estate, but checks are not written out to the individual, but to the estate, And the estate could not have been settled, if this money had not been moved and settled.
If someone had been on the account as joint owners, they can take the money personally
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