Apply for a Trust Tax ID (EIN) Number
The process of applying for a Trust Tax ID (EIN) Number can be a somewhat stressful one, especially if you don’t know what you’re doing. If you’re unsure about this process, then you’re probably wondering what steps you need to take. You may also be wondering what a Trust is in the first place. A Trust is an arrangement that ensures that assets are kept ‘safe’ for the benefit of a named person known as the beneficiary. Below is a guide to the steps that you should take to apply for a Trust Tax ID Number.
A Guide to Understanding and Obtaining your Trust Tax ID:
- Who needs a Trust Tax ID Number?
- Obtaining a Trust Tax ID
- Compare Different Types of Trusts
- How to Apply for a Trust Tax ID Number
Trusts can be set up for a range of different purposes. If a trust is not a grantor trust or has been created by more than two people, a tax identification number will need to be created. A grantor trust is a trust where the grantor remains in control of the trust and is the primary beneficiary. For a ‘Living’ or ‘Revocable Trust’ while the grantor is still living, the grantor’s social security number is used for tax purposes linked to the Trust. However, once the guarantor dies, this is no longer the case - their Social Security Number must be replaced by a Federal Tax ID Number. The Trust - whoever the Trust now belongs to - must obtain their Trust’s Tax ID.
What is a Trust Tax ID? This is a specific number assigned to a Trust by the IRS, which is used as an official numerical identity for tax purposes. Wondering whether you need a Trust Tax ID? If you are involved with any type of Trust where a bank account is required, local licenses need to be obtained or you simply need to file taxes, you will need to obtain a Trust Tax ID (EIN) Number. You can obtain a Tax ID for a Trust online from a 1-Hour Tax ID obtainment service.
There are a range of different kinds of Trusts; these include revocable, irrevocable, testamentary, grantor, and Living Trusts. Living Trusts are trusts that are used by individuals as a way to pass on property while avoiding costs and delays often associated with probate. A Living Trust is also known as a Revocable Trust. A Revocable Trust is a legal document that is created by the Grantor to hold and own the Trustmaker assets, which are then invested and spent for the benefit of the Trustee. This is the opposite of an Irrevocable Trust. An Irrevocable Trust is a Trust that can’t be modified or terminated without permission from the beneficiary of the Trust. When the grantor transfers assets into the trust, he or she removes all of their rights of ownership to the assets within the Trust. A Testamentary Trust is a trust that arises on the death of a testator, which is specified in his or her will. A Grantor Trust is a trust where the grantor - the creator of the trust - retains certain powers. Because of this, the trust’s income is taxable to the grantor.
The first step is to gather any information that you will need to apply for a Trust Tax ID. This should include trustee names, contact details, addresses, etc. You will also need to provide specific information about the Trust itself. You can apply for your Trust Tax ID online and once you have completed the online Trust Tax ID Application, you will receive your Trust Tax ID via email and can use your Tax ID Number immediately. Click the button above to apply for your Trust Tax ID online now.