3 Reasons You Need to Get an EIN For an Estate
An estate, which is a legal entity that is created when a person passes away, consists of real and personal properties of a decedent. The estate is then transferred to the decedent’s beneficiaries or heirs. Those who will take the account for handling the decedent’s estate should then determine the status of the estate if it needs a separate trust tax ID number or EIN for tax purposes, which will then, identify the estate to the Internal Revenue Service.
Should You Get A New EIN After A Death Of A Business Owner?
A separate EIN is needed if a decedent has income-generating assets with annual gross income of more than $600 in his estate. An IRS Form 1041 is filled out for this estate status.
An arrangement can be made by trustees of the decedent’s property and should consider the application for a separate EIN or trust tax id number, as the trust is considered a legal entity different from the estate, and is being taxed under the federal law. The trustees and the trust created will conserve and protect the property for the decedent’s beneficiaries and/or heirs.
There is also a need to apply for a new EIN if the estate operates a business after the owner’s death. This is considered as a new business, though it is getting its funds from the estate for the operation, and needs a different EIN.
Easy EIN Filing
For a fast and secure process, apply for EIN through https://www.irs-ein-tax-id.com/. In three easy steps, you get your EIN within the same day of submitting your application, in most cases within the same hour. The application center at the IRS EIN Tax ID website is available 24/7 with friendly and knowledgeable agents ready to help you process your application.