Here’s when a trust would NOT need an EIN:

Revocable Trust (Living Trust): If the trust is revocable and the grantor (the person who created the trust) is still alive, the trust typically uses the grantor’s Social Security Number (SSN) for tax reporting purposes. In this case, the trust would not need its own EIN.

A revocable trust is considered an extension of the individual who creates the trust (the Grantor/Trustor). As such, any income the trust assets produce is reported on the grantor’s personal income tax return. While the grantor is alive, the grantor’s Social Security Number will serve as the trust identification number.

Here’s when a Trust would need an EIN:

Irrevocable Trust: If the trust is irrevocable (meaning it can’t be changed or dissolved without the consent of the beneficiaries), must obtain its own EIN, even if the grantor is still alive, if the trust holds assets that produce income.  An irrevocable trust is considered a separate taxable entity, so it needs a separate EIN. An EIN from the IRS functions like a Social Security Number for the trust. In the context of trust, it has nothing to do with employment.

For example, when the grantor passes away a revocable trust will become irrevocable. The grantor’s Social Security Number will be deactivated and no longer used to identify trust assets. In that instance, an EIN for the Trust is necessary.

Trusts with Other Taxable Events: If the trust generates income, holds assets, or has tax reporting requirements separate from the grantor, it will need an EIN for filing purposes.

In summary

For a revocable trust, the trust identification number is the grantor’s Social Security Number if the grantor is alive and an EIN if the grantor is deceased.

For an irrevocable trust, the trust identification number is the grantor’s Social Security Number if the grantor is alive, the trust holds only assets that do not produce income, AND the grantor has not elected to have an EIN assigned. Or an EIN is used if the irrevocable trust holds income-producing assets, the grantor is deceased, or the grantor has elected to have one assigned.

When creating a trust, it is important to consult with experienced attorneys about the correct use of a trust identification number based on the type of trust and how you intend to use it.

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