Did you try getting the IRS to reissue the check just in your wife’s name?
And/or — having your wife sign once for herself and once for the estate as “executor”? There doesn’t need to be a bank account in the name of the estate. Suppose the check is made out to person x and person y — they just have to sign, they don’t both need to have accounts at the bank.
I think you may need to get a lawyer and have him/her help with an approach, that will hopefully work.
Yes. The IRS attorney in Oakland who did the audit actually returned our call, heard our story... did some checking and called back. The IRS will not issue checks any other way... her name on line one, the estate name on line two, and then the address. He was very nice and all, and sympathetic... and said this happens to a lot of people. His advice was to try other banks...
The bank(s) refuse any such deposit unless you have an account that is titled "Estate of....". You can only create such an account with a court letter (dated no more than 60 days ago) in hand....period.... no exceptions. At least for Chase and Skank of America.