How to Get a Tax ID Number for a Trust After Death
When a trust becomes a distinct legal entity after the grantor's death, a new federal tax ID is required. Learn the steps for this key trustee duty.
When the creator of a revocable trust passes away, the trustee must obtain a new tax identification number. This is called an Employer Identification Number, or EIN, by the Internal Revenue Service (IRS) and is required even if the trust has no employees. This nine-digit number allows the trustee to operate the trust as a distinct financial entity, separate from the deceased individual’s personal affairs.
Determining the Need for a New EIN
During the creator’s lifetime, a revocable living trust uses the creator’s own Social Security Number (SSN) for tax reporting, as the IRS views it as a “disregarded entity.” All income, such as interest or dividends earned by assets held in the trust, is reported on the creator’s personal income tax return, Form 1040.
The requirement for a new EIN is triggered at the moment of the creator’s death. At this point, the terms of the trust dictate that it becomes irrevocable. This change transforms it into a separate legal and taxable entity that can no longer use the deceased’s SSN.
Information Required to Apply for the EIN
Before beginning the application, the trustee must gather information for IRS Form SS-4, “Application for Employer Identification Number,” which is the form used for this request regardless of the application method. The primary piece of information needed is the exact legal name of the trust, which is found in the trust document. The trustee will also need the date the trust was originally created and the mailing address for the trust.
The application requires identifying the “responsible party,” who is the individual with control over the trust’s assets; this is the successor trustee. The trustee must provide their own full name, address, and Social Security Number. Further details related to the deceased creator (grantor) are also necessary, including their full name and SSN. The application will ask for the entity type, which should be specified as an “Irrevocable Trust,” and the reason for applying, which is “Started a new trust.”
The EIN Application Process
There are three distinct methods for filing Form SS-4, each with different processing times. The fastest method is the online application through the IRS website, which is an interactive process that guides the user through a series of questions. Upon successful validation of the information, the EIN is generated and displayed on the screen immediately.
Alternatively, the trustee can submit a completed Form SS-4 by fax, which has a turnaround time of about one business week. The third option is to mail the completed form to the designated IRS service center. This is the slowest method, often taking two weeks or more for the IRS to process the application and mail back the EIN confirmation letter.
Next Steps After Receiving Your EIN
Once the EIN has been issued, the trustee can take several actions to administer the trust. The first step is to open a new bank account in the legal name of the trust using the new EIN. This account will serve as the central hub for the trust’s financial activities, ensuring a clear separation of funds.
The trustee must then consolidate the deceased’s assets into this new trust bank account. This involves contacting financial institutions where the grantor held assets—such as banks and brokerage firms—and providing them with the death certificate and the new trust EIN to re-title the assets into the name of the trust.
The new EIN is used for all future tax reporting. The trustee is responsible for filing an annual income tax return for the trust on IRS Form 1041, the “U.S. Income Tax Return for Estates and Trusts.” This form reports income earned by the trust’s assets after the grantor’s death, and any income distributed to beneficiaries is reported to them on a Schedule K-1 for their personal tax returns.