A living trust can be complicated to manage if you are not prepared. There are several reasons why you will need to obtain an EIN through IRS-EIN-Tax-ID for your living trust. For more information on how to obtain an EIN, make sure to talk with a trusted professional.
Why your trust will need a Tax ID number
There are several reasons your trust will need to obtain a Tax ID number. If your trust owns life insurance, it does not automatically follow special rules of life-insurance or a Crummey trusts. If the trust was set up to own life insurance with someone other than you as the trustee, you will need a Tax ID number.
The corporation Tax ID number will have to be set up for the benefit of someone else, but does not revert to you if the beneficiary passes away before you.
What to do if your trust already has a Tax ID number
If you are trying to get a Tax ID number, but there is already an EIN associated with your business, you do not have to worry. You have a couple of options, including filing annual tax returns under the trust’s EIN without including any income or expenses. You will simply have to list the EIN on any income or expenses.
You can always change the tax identification number on all the accounts to your Social Security Number. Once you have updated this number, you can file a final income tax return for the trust. There are several ways you can look up a non-profit organization Tax ID number, including reviewing tax returns or contacting your financial institution.
Getting a Tax ID number does not have to be complicated for your trust. The process for completing a Tax ID number application can be done quickly, and you will receive an answer immediately about whether or not your application was approved.