Revocable living trusts allow a person and/or their spouse to donate property or assets to their beneficiaries. Often such revocable living trusts are managed by a trustee. A revocable living trust is, as the name says, revocable. This means that either one or both of the donators, also known as a grantor, may choose at any time to take back the property or other assets from the trust at any time if they wish to do so.
A revocable trust becomes irrevocable once the grantors die. The property or assets pass to the beneficiaries without necessarily needing to go through probate.
Like other types of businesses and organizations, trusts are required to submit a tax return every year and the grantor(s) are responsible for paying taxes on the property or assets within the trust. In order to accomplish this, it is useful to have an Employer Identification Number or EIN. The EIN allows the IRS to identify business entities for taxation purposes.
Although it isn’t a strict requirement while someone is living, some banks do ask for an EIN to be set up when establishing a bank account for a revocable living trust.
Getting an EIN for a Revocable Living Trust
The trustee for the revocable living trust will need to go to the IRS website to fill out an application for an EIN for the trust. You will need IRS SS-4 form. This form may be downloaded and printed directly from the internet or you may go to your local public library and make a copy. You will need
- The name of the Revocable Living Trust
- The mailing address for the trust
- The names of the grantors and trustee for the trust
- The Tax Identification Number (TIN) such as an SSN for the grantor(s) of the trust
Once the Form SS-4 is filled out, it can be submitted to the IRS for approval by mail or by fax. Also, be sure to include all appropriate documentation with the application such as the declaration of trust for the revocable living trust.
These documents should be mailed to:
Internal Revenue Service
P.O. Box 12192
Covington, KY 41012-0192
If you plan to use express mail or another delivery service in place of standard ground mail provided by the United States Post Office (USPS) the SS-4 application for an EIN and accompanying documents should be sent to:
Internal Revenue Service
201 West Rivercenter Blvd.
Attn: Extracting Stop 312
Covington, KY 41011
Once granted, your EIN will be sent to you by mail in approximately two weeks.
Applying For An EIN for Your Revocable Living Trust Online
Sometimes you may need to obtain an EIN or your revocable living trust sooner than the usual two weeks it takes when sending your documents by mail. One of the easiest and fastest ways to accomplish this is to apply for an EIN online. This can be done in a single session and after filling out the online application, if approved your EIN is issued immediately.
To apply online, have all of the following information handy when you apply since there is no way to save and come back to the information.
- The name of the trust
- The mailing address for the trust
- The names of the grantors and trustee for the trust
- The SSN for the grantor(s) of the trust
This online application process is available Monday through Friday from 7:00 a.m. to 10:00 p.m. Eastern Standard Time.
