Dan Posted January 4, 2020 Report Share Posted January 4, 2020 Question: If the wife has an EIN for her business (Schedule C) and her husband dies, does she need to file for a new Tax ID number (EIN) number? They have a trust in their names. Can she use her business EIN number, or must she file for a new EIN number or trust ID number? Thanks for your early response. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted January 4, 2020 Report Share Posted January 4, 2020 No, the EIN for her Sch C is associated with her social security number and is for her business only. The husband's death would not change any of that. The business EIN is for only the Sch C, not ever used for either of their trusts. What type of trust are you asking about? Grantor trusts that are revocable and created during one's lifetime use the SSN and grantor continues to report the income as if the trust doesn't exist. Nongrantor irrevocable trusts created during one's lifetime have EINs and report separately. Finally, testamentary trusts, also called trust under will, are created at death and would need to apply for an EIN. Quote Link to comment Share on other sites More sharing options...
Dan Posted January 5, 2020 Author Report Share Posted January 5, 2020 I don't know for sure what type of trust it is. It says in the trust these words: "as Granters and as Trustees, of The John Doe and Mary Doe Trust." It goes on to say, "The Grantors declare that they are married and that they have …………… Many paragraphs of the trust begin with the words: "The Grantors hereby.... How do you tell what type of trust you have? Question: So if it is a grantors trust, would you need to get an EIN, Trust number after the husband dies? Quote Link to comment Share on other sites More sharing options...
Dan Posted January 5, 2020 Author Report Share Posted January 5, 2020 What type of trust is this: "Upon the death of one of the Grantors, the trustee shall hold the rest and remainder of the trust estate as then constituted for the use and benefit of the surviving Grantor. Trustee shall distribute all the income and so much of the principle to the surviving Grantor as the surviving Grantor shall direct in writing to the trustee....? Do I need to apply for a new EIN if that is the wording above? Does anyone have examples of a grantor trust and an example of one that is not a grantor trust? Thanks for your information! Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.