Does a Trust Need a Tax ID Number?

If you are the creator or administrator of a trust, you may be wondering if you need to apply for a trust tax ID number. Whether you need a trust EIN number depends on what type of trust it is and whether the grantor is still alive. Generally, a trust needs its own tax ID number if it is a separate legal entity from the person who created it.

Revocable Trust Tax ID Number

A revocable trust gives the grantor the ability to control assets until death or incapacitation. This means the creator of the trust can make changes whenever he or she chooses. The grantor can use his or her own Social Security Number as a tax ID for this type of trust. However, once the grantor passes away, the trustee will need to apply for trust EIN.

Irrevocable Trust Tax ID Number

With an irrevocable trust, the grantor gives up ownership of estate assets and transfers them into the trust. This comes with a variety of tax and asset protection benefits. An irrevocable trust is considered a separate legal entity, so it needs its own tax ID from the start.

Apply for Trust EIN Online

If you determine your trust needs a tax ID, obtaining one is easy. You may assume managing a trust’s taxes is complex, but it doesn’t have to be. You can apply for EIN for your trust in just minutes with the online services of GovDocFiling. Remember, only the grantor or trustee has the authority to obtain a tax ID on behalf of a trust.

Now you no longer have to wonder, “Do trusts have tax ID number?” GovDocFiling aims to make the process of obtaining an EIN as smooth and simple as possible. Filling out a trust tax ID application online is the most convenient method. Begin the process of filing for your trust EIN today!