After setting up a revocable living trust, clients sometimes run into problems with bankers, stock brokers or even accountants telling them they need a separate tax ID number for their revocable trust.\u00a0 Usually, this is not the case.\u00a0 A revocable trust uses the social security number of the person who created the trust and still holds the power to revoke the trust.\u00a0 As long as\u00a0the trust\u00a0remains revocable (and has not become irrevocable or partially irrevocable because of the death of\u00a0one or more persons setting up the trust) the creator of the trust\u00a0can continue to use\u00a0their social security number\u00a0just as\u00a0they did when\u00a0they owned the assets individually.\u00a0\u00a0Any income generated by trust assets is\u00a0reported on the tax return of the trust creator holding the power to revoke.<\/p>\n
A trust may start out as a revocable trust but later become an irrevocable trust. This\u00a0most commonly\u00a0occurs when the creator of the trust dies.\u00a0\u00a0When a married couple creates a joint trust, the trust may become irrevocable or partially irrevocable\u00a0when one spouse dies, even if\u00a0the other spouse is still living.\u00a0 Any irrevocable or partially irrevocable trust must have its own tax ID number\u00a0(EIN).\u00a0\u00a0If the trust generates sufficient income, the trustee will need to file\u00a0separate trust income tax\u00a0returns\u00a0as long as\u00a0the trust\u00a0continues to exist.<\/p>\n
A trust never needs to use the social security number of the trustee, unless the trustee is also the creator holding the power to revoke the trust. If the trustee changes, you would continue to use the social security number of the creator holding the power to revoke (if there is one), or the\u00a0tax ID number for an irrevocable trust.<\/p>\n","protected":false},"excerpt":{"rendered":"
After setting up a revocable living trust, clients sometimes run into problems with bankers, stock brokers or even accountants telling<\/p>\n","protected":false},"author":1,"featured_media":1413,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1412","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buyers-law"],"_links":{"self":[{"href":"https:\/\/buyerslaw.com\/index.php?rest_route=\/wp\/v2\/posts\/1412","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buyerslaw.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buyerslaw.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buyerslaw.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buyerslaw.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1412"}],"version-history":[{"count":2,"href":"https:\/\/buyerslaw.com\/index.php?rest_route=\/wp\/v2\/posts\/1412\/revisions"}],"predecessor-version":[{"id":1624,"href":"https:\/\/buyerslaw.com\/index.php?rest_route=\/wp\/v2\/posts\/1412\/revisions\/1624"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buyerslaw.com\/index.php?rest_route=\/wp\/v2\/media\/1413"}],"wp:attachment":[{"href":"https:\/\/buyerslaw.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buyerslaw.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buyerslaw.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}