Often when funding the Trust, a client will be confronted with a question such as "What is the Tax Id.
While the Grantor or Settlor the person executing the Trust is alive, the answer is simple: there is no separate Tax Id. Instead, the Trust uses the Grantor's Social Security number.
In the case of a joint Trust for spouses, the Trust can use either spouse's Social Security number. One of the main reasons that no separate Tax Id.
Funding Your Revocable Trust:
The only time a Living Trust requires a Tax Id. At that time, the Trust becomes irrevocable.
As a result, the Trust can no longer use the Social Security number of the Grantor. The successor Trustee must then apply for a Tax Id number for the Trust. Fortunately, this can be done fairly easily through the IRS' site online.
This set-up continues for as long as the trust remains to be that of the trustor. When the grantor dies, the trust is removed from his trust rules, which now prohibits him from using his Social Security Number in lieu of a separate EIN for the trust.
When Do I Need a Tax ID Number for a Trust?
With that, the trust becomes irrevocable, which means that it is now treated as a separate entity, taxable under the law. This process will take about weeks though. Your email address will not be published. Hi there! I am extremely passionate about trying new things and putting myself out there.
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