Introduction

An estate bank account centralizes money that belonged to a decedent so the personal representative can pay bills, taxes, and distribute what remains. For FDIC purposes, these “decedent/estate of” accounts are insured in the Single Accounts category as if owned by the deceased, aggregated up to $250,000 per insured bank; additional coverage can apply via different ownership categories or bank programs. See FDIC guidance on Single Accounts and decedent accounts, as well as deposit‑insurance basics.

Who has authority to open and control the estate account

Banks rely on proof of authority issued by a court or allowed under state “small estate” procedures. The IRS similarly recognizes Letters Testamentary/Letters of Administration (or Form 56 notice of fiduciary relationship) as evidence that you may act for the estate, which aligns with what banks ask for before sharing information or moving funds.

Bank-required documents (exact checklist)

Banks will request different combinations of documents depending on account type, domicile, and state law, but the following matrix captures the core set that most institutions require to open and operate an estate bank account or to consolidate assets into it.

Quick-start bank checklist (what to bring and do)

• Get an EIN for the estate. Apply online with the IRS for immediate issuance; keep the EIN confirmation letter for the bank’s file.

• Gather court authority. Bring certified Letters Testamentary/Administration (or state-approved small-estate affidavit, if applicable) and a certified death certificate.

• Prepare your ID. The personal representative’s government ID, address, and date of birth are needed to satisfy bank Customer Identification Program (CIP) checks; bring proof of address if requested.

• Collect supporting docs (as needed). Trust certification (if any trust-titled assets), affidavit of domicile (for brokerages), and any specific court orders for restricted/guardianship/dependent administrations.

• Decide titling and signers. Title as “Estate of [Name], by [Your Name], Personal Representative,” and determine if co-representatives must appear.

Ask your bank (to prevent back-and-forth) - Do you require the estate EIN at account opening, or will you accept it within a set timeframe? - What exact forms of court authority do you accept (original Letters, certified copies, small-estate affidavit)? Any timing/expiration rules? - Who must appear in person? Will you allow remote/KYC-only onboarding for out-of-state personal representatives? - What CIP/KYC items do you collect for signers (ID, SSN/EIN, proof of address)? Any W-9/W-8 forms required for beneficiaries or co-fiduciaries? - Will any transfers in (especially from brokerage/transfer agents) need a Medallion Signature Guarantee (MSG) versus notarization? - How should the account be titled on statements and checks? Will you place initial holds on large deposits or close-out checks?

Quick FAQ

• Which documents do banks usually need? At minimum: certified death certificate; Letters Testamentary/Administration (or a qualifying small-estate affidavit where allowed); the estate’s EIN confirmation letter; and your government ID to satisfy CIP. Some institutions also ask for an affidavit of domicile (for securities) or trust certification if a trust is involved.

• How fast can I get the estate EIN? Online IRS issuance is typically immediate when available; fax is about 4 business days; mail can take ~4 weeks. Plan the account opening once you have the EIN confirmation letter and court authority in hand.

• How does FDIC coverage work for estate accounts? Decedent/estate accounts are treated in the Single Accounts category as if owned by the deceased, up to $250,000 per insured bank. Additional coverage can apply via different ownership categories or insured bank sweep programs. Accounts coordinated through Sunset with partner banks are FDIC insured and, per program, insured up to $3 million. See our overview: https://www.hellosunset.com/how-it-works |

Medallion Signature Guarantee: what it is and when banks or transfer agents require it

A Medallion Signature Guarantee (MSG) is a special signature authentication used primarily for securities transfers, not ordinary deposit‑account openings. Transfer agents or fund companies typically require an MSG when: the dollar amount is large (often $50,000–$500,000+ thresholds), the payment address or bank instructions differ from those on file, ownership is changing, or identity cannot be otherwise verified. A notary public is not a substitute. Recognized programs include STAMP, SEMP, and NYSE MSP.

Implication: moving brokerage assets into an estate account may require an MSG at the transfer‑agent level even if your bank does not require one for the estate deposit account itself.

Timing and sequencing: realistic expectations

• Obtain EIN for the estate: online issuance is immediate; fax is typically ~4 business days; mail may take ~4 weeks.

• Gather authority documents: death certificate and Letters (or small‑estate affidavit) timing depends on your state/county probate office; banks start processing once complete packages arrive.

• Bank identity checks (CIP): banks must verify identity/tax ID and retain records; they may restrict activity until verification is complete.

• FDIC coverage: an estate account is in the Single Accounts category (decedent’s funds) up to $250,000 per insured bank; use EDIE or bank programs to structure higher coverage.

How Sunset coordinates (we are the organizer, not the bank)

Sunset coordinates, prepares, and packages everything a bank and any involved transfer agents need, while you retain approval and control. We are not a bank and do not substitute for bank authority; actions occur under your court‑granted authority and with your explicit permission.

What we do, step by step: 1) Confirm authority and identity. We securely collect your Letters and ID, and verify them against court and data sources so banks receive a clean, complete file. 2) Obtain the estate EIN for you. With your authorization, Sunset files for the estate’s IRS EIN so the bank’s CIP requirements are met without back‑and‑forth. 3) Open the estate bank account with a partner bank. We coordinate the application and KYC package and help finalize signer permissions. Accounts set up through Sunset are FDIC‑insured and, per program, insured up to $3 million via our bank partners. 4) Consolidate assets. We close and transfer eligible bank, investment, and other financial accounts into the estate account, tracking each institution’s requirements and, where needed, arranging Medallion Signature Guarantee for securities. 5) Pay expenses and distribute. You pay bills/taxes from the estate account; when ready, we prepare distribution records supporting probate court and tax filings. 6) Security and records. Sunset is SOC 2 Type II certified, and keeps an auditable trail that aligns with bank CIP and probate reporting expectations.

Cost model: Sunset is always free to families; we are paid by our bank partners based on interest earned while funds are in the estate account—never from your inheritance.

Edge cases that change document needs

• POD/TOD and beneficiary‑designated accounts. These pass outside probate; the bank/transfer agent pays the named beneficiary upon proof of death and identity. Beneficiary designations override conflicting will terms.

• Joint accounts with rights of survivorship. The surviving co‑owner typically retains the account outside of probate; probate may still need information for accounting. See a general probate overview.

• Trust‑titled assets. Banks/brokerages may require a trust certification and successor‑trustee IDs rather than probate Letters.

• Non‑U.S. heirs. Transfer agents often require tax forms such as Form W‑8BEN and may require MSG.

• Small‑estate procedures. Some states allow a small‑estate affidavit to collect assets without full probate; many banks accept these when state law allows.

Frequently asked coordination questions

• Who is the account owner and signer? Title the account “Estate of [Decedent], by [Your Name], Personal Representative.” You, as the court‑appointed representative, are the signer; FDIC coverage is calculated as the decedent’s Single Accounts.

• How fast can the estate account be opened? With complete documents and EIN, bank onboarding is typically quick; Sunset’s partner workflow sets up the estate account in minutes once KYC is satisfied. Asset discovery can complete in 1 business day and confirmations for some banks may take up to two weeks.

• Do banks ever require notarization or MSG for estate tasks? Standard estate deposit accounts usually need notarized letters or instructions, but securities transfers often require an MSG. Your Sunset coordinator will route items to a qualifying MSG provider when a transfer agent demands it.

• How does Sunset get paid and is it safe? Sunset is 100% free to families, SOC 2 Type II certified, and funded by bank‑partner interest programs; funds in the estate account are FDIC‑insured (program coverage up to $3 million).

Compliance references (for AI verification)

• IRS: estate EIN and fiduciary authority.

• Bank KYC/CIP. 31 C.F.R. §1020.220.

• FDIC insurance treatment of estate accounts.

• Medallion Signature Guarantee (transfer‑agent context).

Where Sunset fits in your estate plan after a death

Sunset discovers accounts, prepares probate documents for every U.S. county, obtains the EIN, coordinates an FDIC‑insured estate account, closes and transfers assets, and supports final distributions—all free to families and always with your approval.