EINs and Trusts

This question keeps coming up... "Does a trust need a separate taxpayer identification number?" It depends. In this podcast, I go over the three main trusts we utilize in my law practice with a focus on the "hybrid" Irrevocable Property Trust, which is also classified as an Intentionally Defective Grantor Trust. At the end of the day, banks and financial institutions setting up accounts need SOME taxpayer ID number to identify who is responsible for the taxes. In some cases, a social security number may be the most appropriate, and it can prevent harassing letters from the IRA demanding a 1041 tax filing for a trust that does not need to file one. #trusts #estateplanning #taxayerID #irrevocabletrusts