Trusts are common estate planning tools in which a person can transfer ownership of assets to their Trust while they are alive. Then, upon their death, the assets are distributed to the beneficiaries named in the Trust, without the requirement of probate.
A Revocable Trust never requires a Taxpayer Identification Number (“TIN”), as a Revocable Trust is always considered a Grantor Trust by the IRS. A social security number of the person who created the Trust is sufficient when opening new accounts in the Trust name. Nor, does a Revocable Trust have its own tax return, and your taxes are
completed exactly the same as they would if you did not have a Trust in place. After the Person(s) who have created the Trust are deceased, then the Trust becomes irrevocable and a TIN is required.
If your Irrevocable Trust is a Grantor type Trust it will not require a TIN either, until the same point as the Trust creators have both passed away. It is important to understand what type of Trust you are creating and if, and when you may need a TIN. Feel free to call me today at (404) 260-1901 for your free consultation regarding Trust planning.