When you are tasked to be an executor of the estate of someone who passed away, you are required to apply for a tax ID number which is to be used in transactions related to the estate. It is not allowed to utilize the Social Security number of the owner who already passed away nor the executor’s. The only exception is if the deceased left the estate to a living spouse then the person’s Social Security number can be used because the estate is already assumed to be owned by the living person. There is nothing to worry about if you don’t know how to get a tax ID in Washington State as the process is simple and easy.
The EIN is necessary in order for the executor to apply for a bank account for the estate. This is where the interest will be remitted until such time when the estate is turned over to the beneficiaries. The process of applying for an EIN is quite simple and can be done online. For those without access to an internet connection, application through fax is also possible.
The only thing you have to be prepared for is to answer the questions required before the processing can be start. These are simple questions but a number might confuse some people therefore knowing ahead will give one the advantage for a smoother transaction. Below are some of the questions that might be asked during processing.
- The organization type the EIN is intended for. In this case, choose estate.
- The next question will be about the responsible party or the executor’s name. This person will be the one responsible in paying the taxes for the estate as per the knowledge of the IRS. In this case, the Social Security number of the executor will also be required.
- When the online questionnaire asks for an executor’s name, it should be the one indicated in the will of the person who passed away.
- There is also a question regarding Third Party Designee. It pertains to a person assigned by the executor to help on how to get a tax ID in Washington State on their behalf. It could be a lawyer or someone they trust. If you are the executor and paying for the EIN through the application, just answer no.