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This conversation clarifies the complexities surrounding tax ID numbers for trusts, particularly focusing on when a revocable living trust requires its own EIN. The discussion highlights common misconceptions, the implications of obtaining an EIN prematurely, and the importance of proper trust funding to avoid probate. The speaker, an estate planning attorney, shares real-life examples and practical advice to help listeners navigate these issues effectively.

Takeaways

• If you have a standard revocable living trust, you probably don't need a separate EIN.
• The IRS treats a revocable trust as if it doesn't exist for tax purposes.
• When the grantor of a revocable trust passes away, the trust becomes irrevocable and needs an EIN.
• Many people mistakenly obtain an EIN for their revocable trust when they don't need one.
• Once you have an EIN, the IRS may associate that number with a trust filing requirement.
• The easiest way to apply for an EIN is online through the IRS website.
• Keep a clear record of which tax identification number applies to which accounts.
• An unfunded trust still goes through probate, even with a perfect EIN.
• It's important to work with a tax professional who understands trust taxation.
• Proper funding of the trust is crucial for it to work effectively.

Resources:

• Gudorf Law Group
• The Ohio Estate Planning Guide - Free Book
• Gudorf Law: What We Do and How We Help Webinar
• Don't Go Broke in Nursing Home Workshop
• When a Loved One Dies: A Legal Guide - Free Book
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