Question about handling an estate

[David1961]

My father recently passed away and I’m the executor of his estate. In setting up an estate checking account, I was assigned an employer identification number from the IRS to use. In transferring other assets to his estate, I seem to have a choice of keeping the accounts in his SSN or changing them to this new employer identification number. What are the advantages of either keeping most accounts in his SSN versus changing to the new number? He pays little tax so I don’t think it would matter much. His estate won’t be making much income. Will either way make it easier to transfer assets later on? My mother is still alive. They had filed joint tax returns, and as I said earlier, pay very little tax. Any insights would be appreciated. Thanks,

 

[RockyMtn]

I believe that it works this way....

You use your father's SSN when you file his final 1040 for the year of his death. You use the tax ID issued to the estate for your father's estate tax return. So for the accounts that you are transferring to his estate I would use the EIN. Any income received on the assets up to the day of death are taxable on the individual tax return and income received after that is taxable on the estate income tax return.

Once the estate is liquidated, the assets flow to your mother, and the estate's final tax return is filed the EIN will be retired for all intents and purposes.

Don't think it really matters to your mother one way or another. If you use the EIN on the assets going into the estate it will make it much easier in splitting the tax returns. If you use just SSN then you are going to have to pro rate the income based on date of death. Hope this helps.

Sorry for your loss.