What is My Trust Tax Identification Number (EIN)?

A trust identification number is essential for identifying a trust as a legal entity for tax purposes. Whether you’re establishing a revocable or irrevocable estate planning trust, having the correct trust identification number is crucial to properly manage your assets. This number is always one of the following:

• The grantor’s Social Security Number (SSN)
• An Employer Identification Number (EIN) issued by the IRS

An EIN functions similarly to a Social Security Number but is specifically assigned to trusts and other legal entities. In trusts, an EIN does not relate to employment status.

Table of Contents

• Factors Determining Your Trust Identification Number
• Understanding Revocable Trusts
• Understanding Irrevocable Trusts
• When Is an EIN Required?
• Summary: Which Trust Identification Number Applies?
• Frequently Asked Questions
• Contact Russo Law Group, P.C.

Factors Determining Your Trust Identification Number

The choice between using the grantor’s Social Security Number or obtaining an EIN depends on several important factors:

• Whether the trust is revocable or irrevocable
• Whether the grantor is currently alive or deceased
• Whether the trust holds income-producing assets

Understanding Revocable Trusts

A revocable trust is generally treated as an extension of the grantor, meaning the grantor retains control over the trust and can modify or revoke it at any time. Income generated by trust assets is reported on the grantor’s personal tax return. Therefore, as long as the grantor is alive, the grantor’s Social Security Number serves as the trust’s identification number.

Understanding Irrevocable Trusts

An irrevocable trust is designed to separate property from the grantor’s control, typically to protect assets for beneficiaries after the grantor’s death. If the trust holds only non-income-producing assets (such as a personal residence), the grantor’s Social Security Number may still be used as the trust identification number.

However, if the irrevocable trust contains income-producing assets, or if the grantor has passed away, the trust must obtain an EIN from the IRS to serve as its unique identification number.

When Is an EIN Required?

Regardless of trust type, an EIN must be obtained when the grantor dies, as the grantor’s Social Security Number is no longer valid for identifying the trust. Additionally, an EIN is necessary if:

• The trust holds income-generating assets
• The grantor elects to obtain an EIN for the trust

Obtaining an EIN involves completing IRS forms that require details about the trust and grantor. This process can be completed online, by mail, or by fax. Many individuals seek guidance from an estate planning attorney to ensure accuracy. When applied for online, the IRS issues the EIN immediately.

For more information, visit the IRS EIN application page.

Summary: Which Trust Identification Number Applies?

• Revocable trust: Use the grantor’s Social Security Number while the grantor is alive; switch to an EIN upon their passing.
• Irrevocable trust: Use the grantor’s Social Security Number if the trust holds only non-income-producing assets and the grantor is alive; otherwise, use an EIN.

Frequently Asked Questions

What is the difference between an EIN and a Social Security Number for a trust?

An EIN is a unique identifier assigned by the IRS specifically for trusts and businesses, whereas a Social Security Number identifies an individual. Trusts may use either depending on their status and asset types.

Can I use my Social Security Number for my trust indefinitely?

No. While the grantor is alive and the trust is revocable, the grantor’s Social Security Number is used. Once the grantor passes or the trust becomes irrevocable with income-producing assets, an EIN is required.

How do I apply for an EIN for my trust?

You can apply online at the IRS EIN application page, by mail, or fax. Working with an estate planning attorney can simplify the process.

Do I need an attorney to get a trust identification number?

While not legally required, consulting an experienced estate planning attorney ensures your trust is set up correctly and the right tax ID is obtained.

Contact Russo Law Group, P.C.

Choosing the correct trust identification number is a vital part of effective estate planning. The experienced attorneys at Russo Law Group, P.C., specialize in revocable and irrevocable trusts and can guide you through every step.

Contact us today or attend one of our free seminars and webinars to learn more about protecting your assets and ensuring your wishes are honoured.