Does a Living Trust have a tax ID in California?

Living trusts are popular estate planning tools in California, offering privacy and flexibility in managing assets. Many individuals wonder about the tax implications of these trusts, particularly whether they require a separate tax ID.

Generally, a living trust does not need its own tax ID number in California while the grantor is alive. Grantors are often referred to as trustor or settlor, all of these refer to the principal person who established and funded the trust.  The trust uses the grantor’s Social Security number for tax purposes. This simplifies reporting and aligns with the trust’s revocable nature.

After the grantor’s death, the situation changes. The trust becomes irrevocable and may need its own tax ID, known as an Employer Identification Number (EIN). You’ll need to consult with a tax professional to determine if this applies to your specific circumstances.

Does a revocable living trust have a tax id number?

Revocable living trusts typically do not require a separate tax ID number while the grantor is alive. Your Social Security number serves as the trust’s tax identification for most purposes.

How to look up a trust’s EIN or TIN

If your revocable living trust does have an Employer Identification Number (EIN) or Tax Identification Number (TIN), you can find it on official trust documents. Check the trust agreement or any tax filings made for the trust.

You may also contact the person who set up the trust, as they should have this information on record. If needed, you can request a copy of the EIN assignment letter from the IRS by calling their Business & Specialty Tax Line.

For trusts without an EIN, remember that your personal Social Security number serves as the trust’s identifier. This applies to most revocable living trusts during the grantor’s lifetime.

What type of trust needs a tax ID number?

Trusts may require a tax identification number depending on their type and purpose. The need for a separate tax ID is primarily determined by whether the trust is revocable or irrevocable, and if it generates income.

When a tax ID (TIN or EIN) is required

Revocable living trusts typically don’t need a separate tax ID number while the grantor is alive. You can use your Social Security number for tax reporting purposes. The trust’s income is reported on your personal tax return.

Irrevocable trusts, however, generally require an Employer Identification Number (EIN). This nine-digit number is assigned by the Internal Revenue Service (IRS) for tax reporting. It functions similarly to a Social Security number for the trust entity.

You’ll need to obtain an EIN for your irrevocable trust if it generates income. The trust will file its own tax return using this number. You can get a free EIN from the IRS through their online application or by submitting Form SS-4.

For deaths occurring in 2024, only estates worth more than $13.61 million will owe federal estate tax. This high threshold means most trusts or beneficiaries won’t need to worry about federal estate taxes or inheritance taxes.

How to get a tax ID number for a trust

Obtaining a tax identification number for a trust involves a straightforward process. You can choose between a Taxpayer Identification Number (TIN) or an Employer Identification Number (EIN) depending on your trust’s needs.

How to get a tax ID number for a trust after death

When a trust becomes active after someone’s death, you’ll generally need to apply for an Employer Identification Number (EIN), which serves as the tax ID number for the trust.

The easiest and fastest way to get an EIN is by using the IRS’s online application system. Visit the official IRS website and complete the online Form SS-4. The process usually takes about 15 minutes, and you’ll receive your EIN immediately after submission. Be cautious when searching online, as many websites mimic official government pages but charge unnecessary fees or provide misleading services — make sure you are on irs.gov.

If you prefer not to apply online, you can:

Fax a completed Form SS-4 to the IRS at (859) 669-5760.

Mail the form to the IRS, though keep in mind that mailing can take several weeks for processing.

It’s important to know which trusts require an EIN.

Irrevocable trusts generally need a separate EIN, as they are considered independent tax entities.

Revocable living trusts can often use the grantor’s Social Security number while the grantor is alive, but after their death, the trust usually needs its own EIN.

For trusts created after a spouse’s death — for example, when a revocable trust splits into survivor and bypass trusts — you may need to apply for new EINs for each resulting trust.

Finally, because trust taxation can be complex, consider consulting a tax professional to make sure you meet all filing and reporting requirements and avoid costly mistakes.

Contact Laguna Legal for help with your living trust

Establishing a living trust is an important step in estate planning. It helps protect your assets and maintain privacy. However, setting one up on your own can be complicated, and living trust attorneys often charge high fees to create one for you. 

Laguna Legal offers living trust services for California residents at reasonable prices. With decades of experience, we can assist you in setting up a trust without needing an expensive attorney.

To get started, contact us today. Our team can answer your questions and help determine if a living trust is right for your situation.  If you are single and don’t own real estate yet, we can help you set up a complete estate plan for $950 which includes the following documents:  1) Revocable Living Trust; 2) Certification of Trust; 3) Pour-Over Will; 4) Durable Power of Attorney; and 5) Healthcare Directive.  We also notarize and witness all documents in our office at no additional charge.

By working with Laguna Legal, you can ensure your living trust is properly set up and complies with California legal requirements. Take this important step to secure your assets and plan for the future.