Is An EIN Required For A Revocable Trust After Death?

Most of the trusts created are revocable and these are called living trusts. With a living trust, the grantor can put into writing how his personal belongings shall be disposed of after his death. Once a revocable trust is created, a distinct legal entity is formed as the owner of the property chooses what properties to place into the trust. But there are steps you need to take to make it legal, and one of these administrative steps is to get a tax ID Number for trust after death.

During the lifetime of the trustor, he shall only bear a minimum tax impact. Then again, after his death, the nature of the trust will also change. If you are the designated trustee, you will have to go through administrative processes to treat the property subject of the trust appropriately for taxation.

 

Employer EIN in Trust After Death

Generally, trusts are taxed as separate and distinct entities. This is why trustors and trustees (after death) often secure a separate EIN solely for taxing purposes.

A separate EIN is not necessary all the time for revocable trusts. Under the law, revocable trusts are seen and taken by the IRS as “grantor trusts.” Being such, the grantors are allowed to use the Social Security number for the trust. Incomes or liabilities pertaining to the trust are just carried over and accumulated into the trustor/grantor’s individual efile tax return. This set-up continues for as long as the trust remains to be that of the trustor.

Trust After Death

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. With that, the trust becomes irrevocable, which means that it is now treated as a separate entity, taxable under the law.

To get an EIN, the trustee can file to the IRS manually by phone or by mail. This process will take about 2-3 weeks though. A faster way of getting your EIN is to engage the services offered by IRS EIN Tax ID. Their site is safe and secured, plus they’ll deliver your EIN within the same day, for as long as you submitted your application before 7 P.M. EST.