Escrow accounts are generally setup by third-party agents who are responsible for controlling assets during a major transaction, such as a real estate transaction. Because escrow accounts are separate from either the buyer or seller in the transaction, it is no longer under their SSNs or ITINs. Usually, the escrow company itself takes charge of these accounts. The escrow account usually doesn’t need its own tax ID or EIN, but instead the tax ID or EIN will be the escrow company’s.
Escrow accounts are temporary and completed when the transaction is finished. But escrow accounts can also be more complex than a simple real estate transaction. As an example, there are escrow accounts that are designed to collect funds for legal settlements, or escrow accounts that are designed to keep rental deposits until renters leave. Because all escrow accounts have to be kept separate from other funds, those who are setting up the escrow accounts should be careful not to co-mingle any money, and to setup everything correctly with the help of a banker.