Lins Law Group, P.A.
Serving Families of Tampa Bay for Over 25 Years

Do I Need a Federal Tax Id. for My Living Trust?

When estate planning lawyers set up a Living Trust (also sometimes called a Revocable Trust), we instruct clients to title their non-qualified assets in the name of the Trust. Not infrequently, clients try to do this and are mistakenly asked by their bank or credit union: what is the Tax Id. number for the Trust? The question wrongly implies that a Living Trust must have a separate Tax Id. number. This blog discusses that misunderstanding. 

When a person sets up a Living Trust and is acting as Trustee, the Trust does not have a separate Tax Id. number. The reason for this is that as long as the Grantor/Settler of the Trust is also the Trustee, the Trust is just viewed as an alter ego of the person. In other words, the Trust is just another version of the person and is not viewed as a separate entity.

For this reason, the Trust uses the Social Security number of the Grantor/Settler for tax identification purposes. When there is income generated by assets held in the Trust, that income is claimed on the individual tax return--Form 1040--of the Grantor/Settler. No separate tax return is filed for the Trust.

However, when the Grantor/Settler dies, then the successor Trustee of the Trust must apply for a separate Tax Id. number. As a result, the Trust must then begin filing income tax returns annually using the new Tax Id. number for identification. these returns are usually filed on IRS Form 1041.

No Comments

Leave a comment
Comment Information
Attorney Michael Lins
ยป View Attorney Profile
WE SUPPORT OUR TROOPS!
At Lins Law Group, P.A., we support members of all branches of the military, including active-duty, reserve and veterans. Thank you for your service!

We Can Resolve Your Legal Issue

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy