What are the Requirements for EIN Number vs Tax ID for Trust?

An EIN number is a tax identification number used by entities to file taxes with the IRS. A trust also requires a tax ID and is a little bit different when it comes to filing when compared to a traditional EIN Number. A trust is a legal arrangement that sets rules for property that is held in trust for an individual or several people, of which are known as beneficiaries. Property that has been placed in a trust will avoid probate after the individual leaving behind the property has passed away.

A trust will consist of three parts, the principal, interest/dividends earned by the principal and profits from interest if they exist. The grantor, the individual who creates the trust, will create rules and stipulations that will determine who will receive any income from the trust, etc.

There are two types of Tax ID for trust; a revocable trust and an irrevocable trust. With a revocable trust, also known as a living trust, the provisions of the trust can be changed or canceled altogether by the grantor.

With an irrevocable trust, the details cannot be changed, or the trust canceled without the beneficiary’s permission. The grantor will be transferring assets and removing all rights of ownership.

With both options, a federal tax ID must be in place. The ID can be obtained online by simply filling out paperwork for the trust via IRS-EIN-Tax-ID. The application process is offered for revocable and irrevocable trust, making it easy to obtain the right tax ID number.

Filling out the paperwork takes just a few minutes and then the click of the submit button. A short time later, the ID is then emailed to you. Along the way, if you have any difficulty filling out paperwork, the support staff can be of assistance.