What is the Easiest Way to Set Up a Tax ID Number for a Trust Account?

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Trust is a legal term to mean an arrangement which permits certain properties to be held for the benefit of the trustee. There are numerous kinds of trusts that can be created to fit any legal purpose. Then again, if the said trust is the one which is legally termed as a“grantor trust,” or if it is a trust forged by two or more people, a separate tax identification number is needed to be set up specifically for the trust. Here we will discuss how to get an EIN for trust.

A grantor trust is defined as a living revocable trust where the trustor/grantor is named as the primary beneficiary who holds control of the trust. In this case, since the trustor is also the beneficiary, there is no need to secure a separate federal tax ID number. For tax purposes, the income of the trust is declared and reported under the grantor’s Social Security Number.

EIN for Trust Application Process

These are the simple steps in securing an EIN for a trust.

Step 1: Since you already identified which business entity you would be registering, you’ll now proceed to fill up pertinent information in the SS4 form. You have 3 options in filing your SS4. The first two options require 2 weeks waiting period before the EIN will be released. These options are filing your EIN via mail or by phone. The faster option, the 3rd option, is filing your EIN online.

Step 2: Now that you’ve decided to file online and that you’ve filled up your SS4 online, it’s time to check and finalize your details. Once finalized, get ready to submit the same.

Step 3: After submission, all you have to do is wait for your EIN. Those who submitted their application before 7 P.M. EST can get their EINs on the same day. Those who submitted after 7 P.M. EST will get the same on the next business day.