Can a Revocable Trust Have an EIN? + FAQs

Yes, a revocable trust can have an EIN (Employer Identification Number), but it’s usually not required until certain events occur. During the grantor’s life, a revocable trust typically uses the grantor’s Social Security number (SSN) for tax purposes. However, after the grantor’s death (or in a few special cases), the trust must obtain its own EIN to function as a separate legal entity. In short, a revocable living trust doesn’t need a separate EIN while the grantor is alive, but it absolutely will after the trust becomes irrevocable or independent.

Surprisingly, only 11% of Americans have a trust as part of their estate plan, and 55% have no estate plan at all. This means many families may not know crucial details—like how trusts and EINs interact—until it’s too late.

In this comprehensive guide, you’ll learn:

🗝️ Exact Answer Unlocked: The clear answer to whether a revocable trust can have its own EIN, and why it usually doesn’t need one during the grantor’s lifetime.
⚖️ Federal & State Laws Demystified: How IRS rules treat revocable trusts (as “grantor trusts”) and how top states like California, New York, Texas, and Florida handle trust EIN requirements.
🔄 Revocable vs. Irrevocable Showdown: What changes when a revocable trust becomes irrevocable (for example, after the grantor’s death) and why an EIN becomes crucial at that point.
✅ Pros, Cons & Pitfalls: The advantages of getting an EIN for your trust (privacy, smoother estate handling) versus the downsides (extra paperwork, confusion), including common mistakes to avoid so you don’t run into IRS or legal trouble.
💡 Real Examples & Expert FAQs: Real-world scenarios (including court cases and IRS guidance) that shed light on trust tax ID issues, plus quick FAQs with yes/no answers to the most frequent questions about revocable trusts and EINs.

Revocable Trusts vs. EINs: Understanding the Basics

Before diving into laws and exceptions, let’s clarify the key terms. A revocable living trust (often just revocable trust) is a legal arrangement where you (the grantor or settlor) transfer assets into a trust, but retain the power to change or revoke it at any time. You typically name yourself as the initial trustee (manager of the trust assets) and also the beneficiary during your lifetime. Because you’re still in control, the trust is an extension of you — especially in the eyes of the IRS.

An EIN (Employer Identification Number), also called a Federal Tax Identification Number, is a nine-digit number issued by the Internal Revenue Service (IRS) to identify a business or entity for tax purposes. Think of it as a Social Security number for non-individual entities (like companies, trusts, estates, nonprofits, etc.). The Social Security Administration (SSA) issues SSNs to individuals, while the IRS issues EINs to entities. For tax matters, an EIN is used on forms and accounts to identify the trust as a taxpayer when the trust is treated as a separate entity.

How they normally work together: A revocable trust is typically a grantor trust, meaning the trust’s income is legally considered the grantor’s income. The IRS essentially ignores the separate existence of a revocable trust for income tax purposes. As long as you’re alive and the trust is revocable, you report the trust’s income on your personal tax return (Form 1040) just as if the trust doesn’t exist.

Because of this, in most cases you do NOT need a separate EIN for a revocable trust while you (the grantor) are alive. The trust can simply use your SSN as its taxpayer ID for bank accounts and tax reporting. For example, if your revocable trust earns interest on a bank account, the bank can report that interest under your SSN (since you’re the owner for tax purposes). The IRS expects you to include that interest on your own tax return. There’s no separate trust tax return in this scenario, and no separate EIN is required.

However, a trust can obtain an EIN if there’s a practical need or specific situation that calls for it. Importantly, once the trust can no longer be treated as “you” — usually when you pass away and the trust becomes irrevocable — an EIN becomes mandatory. Why? Because at that point, the trust is a separate legal and tax entity. We’ll explore those situations in detail, but first, let’s break down the fundamental rules under federal law.

IRS Rules: How Federal Law Treats Revocable Trusts and EINs

Under federal law, specifically the Internal Revenue Code and IRS regulations, a revocable living trust is classified as a grantor trust.
The term “grantor trust” means the grantor is treated as the owner of the trust’s assets and income for income tax purposes. The relevant law (IRC §§ 671–677) explicitly includes revocable trusts – for instance, IRC § 676 says if the grantor can revoke the trust, the grantor is the owner. In plainer terms, the IRS disregards the separate existence of a revocable trust while the grantor is alive. All trust income is reported on the grantor’s personal tax return, and the trust generally doesn’t file its own return or pay its own taxes.

What this means for EIN:

No EIN needed (usually) during the grantor’s lifetime: Since the IRS doesn’t see the trust as separate, there’s no need for a separate tax ID. The trust uses the grantor’s SSN as its identification number. The IRS and banks are accustomed to this: if you open a bank account in the name of your revocable trust, the bank will typically use your SSN for the account’s W-9 taxpayer ID.
Trust is “invisible” for income tax: Often estate planning attorneys describe a revocable trust as “income-tax invisible” or “disregarded.” The IRS does not require a Form 1041 (trust income tax return) for a revocable trust’s activities as long as you report everything on your own 1040. There’s an option (not commonly used) where a grantor trust can file a Form 1041 as an information return with a statement, but even in that case, the trust would need an EIN only if it files that form. Most people avoid this complexity and simply use their SSN.

Key exception – when an EIN is needed under federal rules: The big turning point is when the trust is no longer revocable or no longer a grantor trust. The most common trigger is the grantor’s death. At that moment, two things happen:

The trust becomes irrevocable (because the only person who could revoke it has died).
The trust is now its own taxpayer – it must file its own tax returns for any income going forward, because the grantor can’t report those on a 1040 anymore.

As a result, the IRS requires the trust (now irrevocable) to get its own EIN. The SSN that was used up to the date of death is no longer valid for the trust’s post-death finances. In fact, using a deceased person’s SSN for a trust or estate is illegal.

The successor trustee – the person designated to take over management of the trust after the grantor’s death – should apply for a new EIN as soon as possible after the death. This EIN will be used to transfer or retitle assets, access bank accounts, and report income going forward (via Form 1041 for the trust).

Practical IRS rules for after death: When you apply to the IRS for an EIN for the trust after the grantor dies, you actually indicate on the form that the trust is now an “irrevocable trust” (because it is irrevocable at that point). Once obtained, the trust’s EIN will be used on all accounts and tax filings. Financial institutions like banks or investment companies will generally freeze a trust’s accounts upon the grantor’s death until the new EIN is provided. This is because legally, the account is now owned by an entity (the trust) that must be identified by an EIN rather than an individual’s SSN. A quick example:

Example: Jane Doe set up a revocable living trust and during her life used her SSN on all the trust’s bank and brokerage accounts. When Jane passes away, her daughter Emily, as successor trustee, notifies the banks. The banks will require Emily to provide an EIN for the trust before allowing her to access or manage the accounts. Emily applies to the IRS (online via Form SS-4) and gets an EIN for the “Jane Doe Trust, now irrevocable.” With that EIN, she can take control of the accounts, move funds, and later file a trust tax return for any income the trust earns while it holds the assets.

Aside from death, are there other times an EIN might be needed under federal law? There are a few less common scenarios:

Trust with multiple grantors: If a husband and wife establish a joint revocable trust, technically each is a grantor. If they file a joint income tax return, they can still use one of their SSNs for the trust. However, if they file taxes separately, using just one person’s SSN for the trust becomes problematic (since the trust contains assets of both). In such cases, obtaining an EIN for the joint trust can simplify reporting. The IRS then expects the income to be divided and reported appropriately by each spouse, but the trust accounts would all use the EIN.
Multiple trusts by the same grantor: Suppose one person sets up several revocable trusts for different purposes (not common, but possible). Technically, that person could use their SSN for all of them since they’re all grantor trusts. But managing numerous trusts under one SSN can be confusing for banks and record-keeping. The IRS allows you to get separate EINs for each trust if you wish, even while the grantor is alive, to clearly distinguish the entities. If you do this, you must still ensure all trust income is reported on your Form 1040 (the EIN in that case is mainly for banking and administrative convenience).
Banks or institutions requiring an EIN: While most banks accept an SSN for a revocable trust account (since they know it’s a grantor trust), some financial institutions have internal policies that prefer or require a separate EIN for any trust account. This might especially occur with brokerage firms or if the trust is going to engage in certain transactions. If your bank won’t let you open a trust account with an SSN, you’ll need to get an EIN even if you’re alive and the trust is revocable. (From the IRS’s perspective, it’s still a grantor trust — you’ll just end up using the trust’s EIN on account paperwork, and possibly filing an informational trust tax return so the IRS can tie that EIN to your SSN at tax time.)
Trust becomes partially irrevocable while grantor lives: In some advanced estate plans, a portion of a trust may become irrevocable before the grantor dies. For example, some life insurance trusts or spousal trusts might start as revocable but convert to irrevocable upon a specific event (other than death). If and when that happens, that sub-trust or portion would then require its own EIN because it’s no longer a grantor trust for that part. (These are specialized cases usually guided by estate attorneys.)

Federal tax forms and compliance: If a revocable trust uses your SSN, you simply file Form 1040 including the trust’s income. If a revocable trust has its own EIN while you’re alive (by choice or necessity), the IRS provides two ways to handle reporting:

Option 1 – No Form 1041, just report on 1040: You can notify any payers (like banks) to issue tax forms (1099-INT, 1099-DIV, etc.) in your name and SSN, even if the account is titled in the trust’s name. This way, everything is directly under your SSN and no separate trust return is needed. Many trustees do this to keep it simple.
Option 2 – File Form 1041 as a Grantor Trust: If the trust has an EIN and receives income under that EIN, you can file a Form 1041 that basically acts as a cover sheet. It will show the trust’s name and EIN, but then zero out the income with a statement declaring that it’s a grantor trust and reporting the income on the grantor’s return. This informs the IRS that although a separate EIN was used, the tax responsibility lies with the grantor’s 1040. (This is a bit technical, and usually only done if required – for instance, you had to get an EIN for the trust because a bank issued a 1099 to the trust’s EIN.)

Bottom line (federal view): As long as a trust is revocable and the grantor is alive, the IRS does not require an EIN. You can get one in special situations, but it doesn’t change the taxation (the trust is still not a separate taxpayer). The requirement for a separate EIN kicks in when the trust becomes irrevocable or otherwise loses its grantor trust status. At that point, the trust is like a separate person in the tax system — it must have its own tax ID and follow the tax filing rules for trusts.

(For advanced readers: The IRS even allows a special Section 645 election after a grantor’s death, where a qualified revocable trust can be taxed as part of the decedent’s estate for a limited time. This can simplify filing by merging the trust and estate into one tax return. If this election is made, the trust and estate effectively share one EIN (usually the estate’s) during the election period. After the election period (up to two years) ends, the trust would then need its own EIN if it continues to hold assets. California, for example, follows the federal rules on this election. This is a niche strategy used by CPAs and attorneys to ease administration, but either way, a revocable trust still uses the grantor’s SSN while the grantor is alive, and obtains an EIN when it becomes irrevocable.)

State-by-State Differences: Do States Require Separate EINs?

Trust law is primarily state law, but when it comes to EINs and taxation, federal rules dominate. No matter what state you’re in, the IRS rules about grantor trusts and EIN requirements apply. That said, different states have their own nuances in trust administration and state taxation. Here, we’ll look at a few key states – California, New York, Florida, and Texas – to see how things might differ or align with the federal baseline. (These are large states with many trusts; if your state isn’t listed, it likely follows similar principles, but always check local law for any unique wrinkles.)

California: Living Trusts in the Golden State

California is a state where revocable living trusts are extremely popular for estate planning (largely to avoid the expensive probate process). Under California law, there is no requirement to register a revocable trust with the state or get a state tax ID number for it. California follows the federal grantor trust rules: as long as the trust is revocable and the grantor is alive, the trust’s income is reported on the grantor’s personal California income tax return (Form 540) using the grantor’s SSN. No separate California fiduciary return is required during that period.

State income tax: California taxes trust income at some of the highest state rates in the country, but a revocable trust doesn’t file a separate California Form 541 (fiduciary return) while it’s a grantor trust. After the grantor’s death, if the trust remains in existence to administer assets (now as an irrevocable trust), it will have to file Form 541 annually for any taxable income, using the trust’s EIN (which it obtained after death). Essentially, once the trust has an EIN federally, California will use that same EIN for state filings.
Community property nuance: California is a community property state. Married couples often create a joint revocable trust to hold community assets. Typically, while both spouses are alive, they might list one spouse’s SSN on accounts (often the husband’s, but it could be either, or both). If the spouses file taxes jointly, this poses no issue. If they file separately (rare for community property couples but possible), using one SSN could complicate attributing income. In such cases, some California couples might get an EIN for their joint trust for clarity. Still, the trust remains a grantor trust to both spouses, and they would divide the income on their personal tax returns.
After death administration: California trusts often continue after one’s death (for example, to distribute assets gradually or hold assets for beneficiaries). The successor trustee in California must obtain a new EIN for the trust after the grantor dies, just as the federal rule requires. California’s Franchise Tax Board then expects the trust’s income to be reported on Form 541 using that EIN. Practically speaking, California banks and financial institutions will also demand the EIN before allowing the successor trustee to manage accounts, mirroring the federal requirements.

In summary, California doesn’t impose any extra requirements for EINs beyond what the IRS requires. It adheres to the notion that revocable trusts use SSNs (no EIN) pre-death, and irrevocable trusts use EINs post-death. One thing to note: California, via its adoption of parts of the Uniform Trust Code, makes clear that a trustee has duties to keep trust property separate and identified — which indirectly means using proper taxpayer identification for the trust when appropriate (to avoid co-mingling with personal assets).

New York: Trust Taxation in a High-Tax State

New York state also follows the federal framework for grantor trusts. If you have a revocable living trust and you’re a New York resident, the trust’s income is reported on your New York personal income tax return (IT-201) under your SSN as long as you’re alive. No separate EIN is required and no separate New York fiduciary return (IT-205) is filed while the trust is a grantor trust.

However, New York has some special considerations:

Resident Trust rules: New York will tax a trust as a “resident trust” (meaning it owes NY income tax on all its income) if the trust was created by a NY resident decedent or grantor, except in certain cases. One exception is if the trust has no New York trustees, assets, or source income and no NY resident beneficiaries – such a trust can be exempt from NY tax (often called an “exempt resident trust”). But crucially, even determining this requires that the trust be its own taxpayer, i.e., have its own EIN and file returns. A revocable trust while the grantor is alive isn’t separate, so this “resident trust” concept doesn’t apply until after death when the trust becomes irrevocable.
Post-death EIN and state filings: When the grantor dies and the trust gets an EIN, a New York resident trustee would start filing Form IT-205 (New York Fiduciary Income Tax Return) each year, in addition to the federal Form 1041. The trust’s EIN is used on those forms. New York’s tax rates on trust income can be steep (matching the personal income tax rates, which go up to around 10%+ for high income). So if an irrevocable trust continues after the grantor’s death with significant income, getting the EIN and properly filing in New York is critical to avoid penalties. The state tax department can be strict, and a trust that fails to get an EIN and report income might face state penalties in addition to IRS issues.
New York banking: New York banks, like those elsewhere, will require the EIN when a trust’s ownership changes due to death. If you show up as a trustee trying to transfer a deceased grantor’s trust account in New York, expect to provide a new EIN confirmation letter along with the trust documents.

In essence, New York doesn’t change the fundamental rule: no EIN needed during life, but absolutely required after death. The added layer in New York is its trust taxation system – once the trust has an EIN, you must evaluate if it’s a New York resident trust subject to NY income tax or if it can be structured to avoid ongoing NY taxation (which is a complex planning topic on its own).

Florida: No State Income Tax, But Don’t Skip the EIN

Florida is another state where revocable living trusts are extremely common (Floridians often use trusts to avoid probate, since Florida’s probate can be time-consuming). Florida, however, does not have a state income tax on individuals or trusts. This simplifies matters: there is no Florida tax return for a trust, whether revocable or irrevocable. Everything is about federal rules.

During life: A Florida revocable trust uses the grantor’s SSN just as it would anywhere else. There’s no Florida-specific requirement for an EIN while the trust is revocable. You won’t be filing any state trust tax returns because Florida doesn’t tax trust income. So the focus is entirely on following federal (IRS) guidelines.
After death: Even without a state income tax, a trust in Florida absolutely needs to get an EIN after the grantor dies. Florida banks and financial companies will not allow a successor trustee to retitle assets or write checks from the trust’s accounts until an EIN is provided. The situation is identical to the general case. In fact, many Florida estate attorneys make obtaining the EIN one of the very first steps when administering a trust after someone’s death, because it’s needed to do almost anything else (from accessing bank accounts to selling real estate held in the trust).
Florida probate vs. trust: Florida’s legal system encourages the use of trusts to avoid probate court oversight. If someone dies with only a will (no trust), their estate would require an EIN for the probate estate. With a trust, you bypass the court process, but you still need that EIN for the trust. One way or another, Uncle Sam (via the IRS) requires a tax ID for the entity handling the assets of a deceased person. In Florida, it’s usually the trust, so the trustee obtains the EIN and proceeds to marshal assets. There’s no Florida Department of Revenue issue to deal with for trust income, which is one less headache compared to states like NY or CA.

In summary, Florida’s lack of income tax means fewer compliance burdens, but it doesn’t change federal EIN rules. Florida trustees must get an EIN for the trust post-death, but they won’t have to file a state return. It’s all about proper federal compliance and smooth administration of the trust.

Texas: Community Property Trusts and After-Death Transitions

Texas, like Florida, has no state income tax on trusts or individuals. It’s also a community property state and often sees married couples using joint revocable trusts in their estate planning. Texas generally follows the Uniform Trust Code and does not impose any additional requirements for trust EINs beyond federal law.

While revocable (grantor alive): No EIN is needed in Texas; the trust uses the grantor’s SSN, and no Texas tax filing is involved (since there’s no state income tax). If a husband and wife in Texas create one revocable trust for both of them (common in Texas estate plans), they typically use one spouse’s SSN for the trust’s accounts. Because Texas couples usually file jointly (community income), using one SSN is fine. If they choose to file separately, that would be a scenario to consider an EIN or some tax allocation, similar to the federal discussion.
Upon death – trust splits: A distinctive feature in Texas (and other community property states) is that many joint trusts include provisions to split into sub-trusts when one spouse dies. For example, when the first spouse dies, the joint revocable trust might split into a Survivor’s Trust (which remains revocable by the surviving spouse) and a Family or Bypass Trust (which becomes irrevocable to preserve the deceased spouse’s estate tax exemption). In this event, the irrevocable bypass trust will need its own EIN (because it’s now a separate entity), while the survivor’s portion might continue under the surviving spouse’s SSN. The trustee (often the surviving spouse) may suddenly be managing two trusts: one still under an SSN and one under a new EIN.
Trust administration in Texas: Texas banks, like elsewhere, require an EIN for any trust that is operating after an individual’s death. The procedure is straightforward with the IRS online EIN system. There’s no additional Texas state filing or registry for trusts. However, Texas law does require trustees to adhere to fiduciary standards, which includes keeping trust property identifiable and separate. This ties into using proper tax IDs: if a Texas trustee tried to keep using a decedent’s SSN or mix trust funds with personal funds, they’d violate those duties. While there might not be a tax penalty from Texas, there could be legal liability to beneficiaries. Texas courts (probate courts) can get involved if, say, a beneficiary complains the trustee didn’t properly segregate the trust (which using an EIN helps accomplish by clearly separating accounts).

Other States: In virtually all other states, the pattern is similar. Some states with income tax (like Illinois, Pennsylvania, etc.) will tax trust income using the trust’s EIN once the trust is irrevocable and required to file its own return. States without income tax (like Nevada, Washington, Alaska) still follow the same approach for federal taxes and practical administration. Regardless of location, obtaining a proper EIN at the right time is a universal requirement once a trust stands on its own. A few states might have unique trust laws (for instance, some require notification to beneficiaries when a trust becomes irrevocable), but none require an EIN for a purely revocable trust during the grantor’s life. Always check local statutes if in doubt, but the IRS rules effectively set the standard nationwide.

Revocable vs. Irrevocable Trusts: Why EIN Rules Change

It’s helpful to compare revocable and irrevocable trusts directly to understand why an EIN is not needed in one case and mandatory in the other. These two trust types are treated very differently for tax purposes and legal identity.

In a nutshell:

A revocable trust (grantor trust) is treated as you (the grantor) during your lifetime.
An irrevocable trust is treated as a separate legal entity (think of it like a separate “person”) from the moment it’s created (or from the moment it becomes irrevocable).

Here’s a side-by-side comparison:

Revocable (Living) Trust	Irrevocable Trust
Control: Grantor retains full control and can change or cancel the trust at will.	Control: Grantor gives up control – terms are fixed (cannot freely revoke or amend). A trustee manages assets for beneficiaries.
Tax Identity (during grantor’s life): No separate EIN needed. Uses the grantor’s SSN as the trust’s taxpayer ID. The trust is a grantor trust – ignored for federal income tax.	Tax Identity: Requires its own EIN from the start. Treated as a separate taxpayer by the IRS. The trust must have an EIN because it files its own tax returns (Form 1041) annually.
Income Taxation: All income is taxed to the grantor personally. Income is reported on the grantor’s 1040; the trust doesn’t pay taxes separately. (Example: Interest income from a revocable trust’s bank account is reported under the grantor’s SSN.)	Income Taxation: The trust itself may pay taxes on income, or it distributes income to beneficiaries who pay the tax. The trust files Form 1041 each year. For example, interest income in an irrevocable trust is reported under the trust’s EIN on its own tax return.
During Grantor’s Lifetime: No separate trust income tax returns. No additional administrative burden with the IRS (aside from possibly informing payers to use SSN). The trust is “invisible” in the eyes of the IRS.	Ongoing Administration: The trustee must maintain records, file tax returns, and possibly pay estimated taxes under the trust’s EIN. The trust is fully visible to the IRS as a distinct entity.
Typical Use: Estate planning to avoid probate, manage assets if incapacitated. Doesn’t inherently provide tax savings while grantor is alive (since grantor pays the taxes).	Typical Use: Often used for tax planning (estate tax reduction, income shifting), asset protection, or long-term family asset management. Can remove assets from the grantor’s estate or shift income to beneficiaries, etc., since the trust is independent.

Why the EIN difference? It comes down to whether the trust is considered separate from the individual. A revocable trust isn’t separate (until it needs to be), so an EIN is like an “ID card” it doesn’t qualify for yet – it’s walking around with the grantor’s ID. An irrevocable trust is born as a separate entity, and the EIN is its ID card from day one.

One interesting twist: You can have an irrevocable trust that is still a “grantor trust” for tax purposes (if it meets certain IRS criteria like the grantor retains some powers). A common example is an irrevocable life insurance trust (ILIT) that is designed so the grantor pays the income tax (if any) on trust earnings, even though the trust is irrevocable. In such cases, for tax purposes it’s treated like the grantor’s income, but because it’s legally irrevocable, it still must have its own EIN. You as grantor would report the trust’s income on your 1040 (grantor trust rules), but all the trust’s accounts, policies, etc., are under the trust’s EIN. The trust may file a Form 1041 as an information return to tie things together, but it won’t pay tax separately. This scenario shows that “grantor trust” and “revocable” are not exactly the same, though all revocable trusts are grantor trusts. The key point: revocable vs. irrevocable is about legal control, which dictates the need for an EIN, whereas grantor trust status is a tax concept.

In general, revocable = no EIN (until it converts at death), irrevocable = EIN required. When your revocable trust eventually switches to irrevocable (e.g., at death or possibly when a certain event forces it), that’s when the EIN kicks in. It’s like a business: as long as you’re operating as a sole proprietor under your own SSN, you don’t need a company EIN, but if you incorporate a separate company, now you do. Revocable trust is you; irrevocable trust is its own company.

When (and Why) a Revocable Trust Needs an EIN

We’ve touched on this in various ways, but let’s list clearly the situations where a revocable trust should or must have an EIN. These are essentially “trigger events” or structural reasons that make a separate tax ID necessary:

Death of the Grantor: This is the #1 trigger. When the person who created a revocable trust dies, the trust typically becomes irrevocable (no one can revoke it now). At that point, the trust must get an EIN. All the trust’s future financial activities (selling assets, earning interest, paying out money to beneficiaries) will be done under that EIN. Why? The grantor’s SSN can no longer be used (it’s tied to a deceased individual and will be closed for tax purposes), and the trust now is a separate taxpayer. Example: John Doe dies, his “John Doe Revocable Trust” now continues as an administrative trust to distribute assets. John’s SSN died with him; the trust needs an EIN for its bank and tax filings.
Revocable Trust becomes Irrevocable during Grantor’s life: Less common, but if your trust had a provision that causes it to become irrevocable (say you resigned control and a third-party trustee takes over with no power for you to revoke anymore), then from that point the trust would need an EIN. Essentially, it changed character from grantor trust to separate trust, so it now requires its own ID.
Joint Trust with Separate Tax Returns: If you and your spouse set up one joint revocable trust but you don’t file a joint income tax return, an EIN is strongly recommended. For instance, if Spouse A and Spouse B have a trust together but file taxes separately, which SSN should be used? There’s no clear answer without complicating things (you’d have to split income and perhaps issue a K-1 between spouses). It’s cleaner to give the trust an EIN and treat it as a grantor trust to two grantors. The EIN is used on accounts, and each spouse picks up their respective share of trust income on their own tax return.
Multiple Revocable Trusts for One Person: Imagine a scenario where you have two or three different revocable trusts (perhaps for different sets of beneficiaries or different purposes, like one trust for your spouse’s benefit and another for charity upon your death). While alive, all are grantor trusts to you. Technically, you could use your SSN across the board. But administratively, one might get an EIN for each trust to keep their finances separate. If trust A and trust B both generate income, having separate EINs ensures the income is reported separately under each trust (even though you’ll still claim it on your 1040, the paper trail is clearer). This avoids confusion such as banks mixing up accounts or the IRS seeing all trust income as one lump. It’s an optional scenario, but a valid reason to have EINs even during the grantor’s life.
Bank or Financial Institution Policy: Sometimes, a bank or brokerage may say, “We require an EIN for any trust account.” This can catch people off guard, since legally it might not be required. But if you run into this, you’ll likely need to comply to use that institution. After all, an institution is allowed to have stricter requirements than the minimum. For example, some investment firms prefer not to deal with personal SSNs for trust accounts due to privacy and reporting issues. If you encounter this, obtaining an EIN for your revocable trust is the solution. The trust remains a grantor trust (so you’ll handle taxes as before), but now the account is under an EIN.
Trust Involvement in an Estate or Other Entity: If a revocable trust is a beneficiary of someone else’s estate or IRA, sometimes having an EIN during administration helps segregate funds. One notable case is if the trust (still revocable while you’re alive) is named as beneficiary of a life insurance policy or a retirement account and the proceeds pay out while you’re alive (rare scenario). Those proceeds might be better handled under a trust EIN. Similarly, if a trust engages in operating a business (though usually, you’d hold a business in a separate structure), having an EIN might be necessary for licenses or payroll. These are edge cases indeed.
Successor Trustee Acting due to Incapacity: If you, as grantor, become incapacitated and a successor trustee steps in to manage the revocable trust, generally the trust still uses your SSN. Incapacity alone doesn’t require an EIN – the CalCPA guidance (from a CPA) confirms this. However, in some cases, corporate trustees or trust companies taking over management might prefer to get an EIN to avoid using the incapacitated person’s SSN. It’s not legally required, but it could happen for practical reasons.

In summary, outside of the grantor’s death, most scenarios where an EIN is obtained during the grantor’s life are optional or for convenience. The only mandatory time is once the trust can no longer be a grantor trust (post-death or complete relinquishment of control).

Tip: Estate planning attorneys and CPAs often advise against getting an EIN for a revocable trust while the grantor is alive unless there is a compelling reason (like the ones above). Keeping it simple (using your SSN) avoids extra filings and potential confusion. On the flip side, they absolutely advise getting the EIN promptly when it is needed (for example, right after a death).

Pros and Cons of Giving a Revocable Trust its Own EIN

Should you ever voluntarily get an EIN for your revocable trust while you’re alive? What benefits might that bring, and what downsides should you be aware of? And after the grantor’s death, what are the pros/cons of the trust operating under its EIN (versus, say, wrapping everything up quickly)? The table below sums up the advantages and disadvantages:

Pros of Obtaining an EIN for a Revocable Trust	Cons of Obtaining an EIN for a Revocable Trust
Privacy: Keeps your SSN off financial accounts and documents. This can protect your personal identity, since you won’t be giving out your SSN every time the trust opens an account or completes a W-9.	Extra paperwork: Applying for an EIN (though quick) is an additional step. Once you have an EIN, you may need to file extra tax forms (like a Form 1041 with a grantor statement) each year, or at least ensure reporting is linked to your 1040.
Financial separation: Makes it easier to clearly separate the trust’s finances from your personal finances. The trust’s bank accounts, investments, and income items will all tie to the trust’s EIN, helping with record-keeping and accounting (especially if you have multiple trusts).	Potential confusion: Introducing a new tax ID can confuse some financial institutions or even the IRS if not handled correctly. For example, if income is reported under the trust EIN but not properly shown on your personal return (or without an information return), the IRS might think the trust should have filed a tax return. It’s an added layer to manage correctly.
Ease of transition at death: If your trust already has an EIN and all accounts use it, the transition when you die might be a bit smoother. The accounts are already under the trust’s name and EIN, so the successor trustee may not have to change account numbers or re-issue 1099s for the year of death. (However, the trustee should notify the IRS that the grantor has died, and the trust may still need a fresh EIN if a Section 645 election or other changes occur.)	No tax benefit during life: There’s zero income tax benefit to having an EIN while the trust is revocable. You, the grantor, are still paying the tax. Some might mistakenly think putting income under an EIN means the trust pays or somehow reduces taxes — it doesn’t in a revocable trust. All income still hits your return at your rates.
Multi-grantor/joint trust solution: For a trust with more than one grantor (like spouses who file separately), an EIN provides a neutral ID that isn’t one person’s SSN. This can simplify how income from the trust is divvied up and reported by each spouse.	Updates required: If you switch from using an SSN to an EIN mid-stream, you have to update banks, brokers, and other payers. They might need new paperwork (W-9 forms, etc.) to swap the identification number on file. This can be a hassle and there’s a risk something gets lost in transition (e.g., a bank issues a tax form to the wrong ID if timing isn’t right).
Institutional requirement met: If a bank or lender simply won’t proceed without a trust EIN, getting one lets you move forward with your financial plans (opening accounts, loans in trust name, etc.). In some cases, having an EIN may also allow the trust to do things like hire employees or independent contractors (for instance, if the trust owns a property and you pay a caretaker — you could do that under the trust’s EIN).	Missteps can be costly: Using an EIN improperly might lead to mistakes, like filing the wrong kind of tax return or not reporting income correctly. For example, a DIY trustee might start a separate trust tax return unnecessarily (or omit one when required) because they misunderstand the rules. Any time you add complexity, you increase the chances of errors or penalties if those errors aren’t caught.

As you can see, many of the pros are situational (privacy, multi-grantor convenience) or preventative (e.g., if a bank demands it). The cons largely revolve around “don’t create work for yourself for no gain” and “be careful if you do this.” For most individuals, sticking with your SSN for a revocable trust is perfectly fine and recommended. The pros really become meaningful when the context demands an EIN (like at death or certain financial moves).

Once the trust is irrevocable (post-death), you don’t really have a choice – the EIN is there, and the pros and cons then are more about how long to keep the trust going. For instance, one could argue:

Pros of having the trust continue (with EIN) after death: It can manage and distribute assets, perhaps protect assets for beneficiaries, allow for professional management, etc.
Cons: The trust will pay its own tax (often at high trust tax rates if income is retained), and the administration costs and complexity continue until you terminate the trust.

Those considerations go beyond just “having an EIN” and into whether an ongoing trust is worthwhile – a separate estate planning question. But since our focus is the EIN aspect: if the purpose of the trust (e.g., protecting a minor’s inheritance or keeping family property in one place) is being served, then the fact it must have an EIN is just a required formality.

Avoid These Common Mistakes with Trust EINs

Setting up and administering trusts can be complex, and there are some frequent mistakes people make regarding EINs and revocable trusts. Here are some common pitfalls and misconceptions – make sure you avoid these:

❌ Getting an EIN too early for no reason: A number of people, perhaps thinking their trust is like a business, apply for an EIN as soon as they create a revocable living trust. This often isn’t necessary and can complicate things. If you get an EIN while you (grantor) are alive and continue to use it, you’ll have to ensure all trust income is still reported on your return (either by having payers switch to your SSN or by filing a grantor trust info return). Unless you have a situation like those discussed (joint trust separate taxes, etc.), don’t obtain an EIN for a revocable trust “just because.” It’s not needed and just adds an extra layer of administration.
❌ Failing to get an EIN when required: The flip side mistake is not getting an EIN when you should. The most egregious example is a successor trustee continuing to use the deceased grantor’s SSN on accounts. This is not allowed after death. It can lead to frozen accounts and legal troubles. Another example is if a portion of a trust became irrevocable (e.g., a bypass trust after a spouse’s death) and the trustee neglects to get an EIN for that new irrevocable trust. Always be alert to trigger events (death, trust split, etc.) and obtain the EIN promptly. The IRS issues EINs quickly (often instantly online), so delay is usually on the trustee’s part. Don’t let inertia or ignorance jeopardize the trust’s smooth operation.
❌ Using the wrong EIN or SSN on tax forms: Trustees sometimes mix up estate and trust IDs. For example, if there’s also a probate estate open for the deceased (with its own EIN) and a trust with its EIN, using the estate EIN on trust income or vice versa is a mistake. Each entity needs to use the correct identification on its tax filings. If you made a Section 645 election (merging trust and estate for tax purposes), use the estate’s EIN for the combined returns as directed, and don’t separately file trust returns under another EIN until the election period ends. In short, keep your identifiers straight: individual’s SSN for individual income, trust’s EIN for trust income (when the trust is a separate taxpayer).
❌ Not updating financial institutions after a change: Let’s say you had your revocable trust using your SSN, and then the grantor dies and you get an EIN — you need to immediately inform all banks, brokers, etc., and often retitle accounts or update their records to the new EIN. If you forget, a bank might continue to report interest under the old SSN, causing tax reporting confusion for the estate or trust. Conversely, if you got an EIN and switched mid-year, ensure the bank doesn’t double-report some income. Coordination in the year of transition is key. Communicate with all institutions so they know exactly which ID to use and from what date.
❌ Assuming an EIN means the trust pays the taxes: This is a misunderstanding that can lead to either underpayment or overpayment. Some might think once a trust has an EIN, the trust as an entity owes the taxes on income automatically. If it’s still a grantor trust (e.g., you just got an EIN during your life for convenience), you still owe the taxes, not the trust. On the flip side, after a grantor dies, sometimes family members don’t realize the trust’s income now needs a trust tax return and possibly tax payments by the trust or beneficiaries. They might mistakenly keep reporting it on an individual’s return. Solution: Know the status of the trust. If grantor alive = grantor pays taxes; if grantor dead and trust now irrevocable = trust/beneficiaries pay taxes. EIN doesn’t dictate who pays; trust status does.
❌ Choosing the wrong type on the EIN application: When applying for an EIN on IRS.gov or using Form SS-4, you’ll be asked the type of entity. People administering a trust after someone’s death sometimes make the mistake of calling it a “revocable trust” out of habit (because it was revocable before). Post-death, that’s wrong — it’s now an “irrevocable trust” for EIN purposes. If you select the wrong option, you might fill in things incorrectly or get instructions that don’t apply. Always accurately describe the trust’s current status on the EIN application. For example, “John Smith Revocable Trust” should be labeled as an irrevocable trust on the application if John Smith has died.
❌ Neglecting state-specific steps: While getting a federal EIN is necessary, don’t forget any state requirements after a death. For instance, some states require notifying the state tax department or a court about the trust. If the trust will continue, you might need to file state fiduciary returns (using the EIN) or register the trust in some manner (a few states have trust registries for ongoing trusts). These aren’t exactly EIN mistakes, but procedural ones tied to the trust’s separate existence. Check with a local attorney or CPA to ensure you’ve covered all bases once the trust has its EIN and is operating.
❌ Commingling assets because of ID confusion: A core duty of any trustee is not to mix trust assets with personal assets. If a trustee doesn’t use the correct identification for accounts, it could be seen as not properly segregating funds. For example, if after a grantor’s death a trustee keeps a bank account open under the deceased’s SSN and starts depositing other funds into it, that’s commingling estate/trust assets in what is effectively an individual account. Always move assets to properly titled trust accounts with the trust’s EIN to maintain that clear separation. If you don’t, beneficiaries could have legal grounds to claim you mishandled the trust.

Avoiding these mistakes comes down to understanding the rules and staying organized. If you’re unsure, it’s wise to consult with an estate planning attorney or CPA when dealing with trust EIN issues. For example, an attorney can guide a successor trustee through the post-death process (often giving a checklist that starts with “obtain EIN for the trust”), and a CPA can assist in making sure tax filings are done correctly under the right numbers.

Real-World Examples: EIN Scenarios in Action

Let’s illustrate a few realistic scenarios to see how this all plays out:

Example 1: Simple Revocable Trust (No EIN Needed Initially)
Maria creates a revocable living trust in 2025 and transfers her house and investment account into it. She is the trustee and beneficiary during her life. All income from the trust assets (interest, dividends) is reported under Maria’s SSN on her tax return. Maria’s broker has on file that the account is the “Maria Revocable Trust UA 1/1/2025” with Maria’s SSN as the tax ID. Maria lives off the income, and everything is smooth with no separate filings. No EIN was obtained because it wasn’t necessary. Fast forward to 2035, Maria passes away. Her trust becomes irrevocable and continues to hold her assets (now for the benefit of her two children). At that point, the successor trustee, her son Alex, applies online and gets an EIN for the “Maria Revocable Trust, now irrevocable, dated 1/1/2025.” Alex provides the EIN to the bank and broker, who retitle the accounts to reflect the trust’s new status. In 2036, Alex will file a Form 1041 for the trust’s 2035 income (from the date of death onward) using the trust’s EIN, and beneficiaries will pay tax on any income distributed to them. This shows the typical timeline: no EIN while Maria was alive, EIN promptly after death.

Example 2: Joint Spousal Trust with an EIN
David and Sarah (a married couple in Texas) set up a joint revocable trust for their community property assets. They initially list David’s SSN on all trust accounts, and they file taxes jointly, so reporting is easy. A few years later, they decide to start filing separately (for unrelated personal reasons). Now the trust’s income needs to be divided between them for tax purposes, which is awkward with only David’s SSN on accounts (it makes it look like all income is David’s). At their CPA’s advice, they obtain an EIN for their trust. The trust remains revocable and grantor as to both of them, but administratively, all account statements and tax forms now show the trust’s EIN. At tax time, the bank sends a 1099-INT to “The David and Sarah Trust, EIN 12-3456789.” David and Sarah give that to their CPA, who knows the trust is grantor to both, and allocates the interest 50/50 (or according to their community property share) on each of their returns. They also include a statement or attachment (if filing electronically) informing the IRS that the trust income is reported on their two returns, to avoid mismatch issues. This example highlights using an EIN to solve a multi-grantor reporting issue. It added a step (filing a statement), but it kept things clear and likely saved them potential IRS inquiries.

Example 3: Bank Requires EIN for a Revocable Trust Account
Lee in New York sets up a living trust and goes to open a new brokerage account in the trust’s name. The brokerage firm’s compliance department says they prefer not to open trust accounts under a personal SSN, especially given the trust could outlive Lee. They ask for an EIN for the trust. Lee is surprised since his attorney told him a revocable trust doesn’t need an EIN. After confirming this is a firm requirement (and being eager to get the account open), Lee obliges and applies for an EIN for his trust.

Now the account is opened with the trust’s EIN. Each year, the brokerage sends a 1099-B and 1099-DIV for the trust’s investment income under that EIN. Lee (or his accountant) simply includes those amounts on his 1040, and they choose to file a Form 1041 (grantor type) as an information return listing all the income and stating it’s reported on Lee’s SSN. Alternatively, Lee might instruct the broker to issue a “grantor letter” that associates the trust’s EIN income to Lee, to ensure the IRS doesn’t expect a tax payment from the trust. Either method works. The key is Lee had to accommodate the bank’s rule, and by doing so, he just needs to take one extra step at tax time. When Lee dies years later, the trust already having an EIN makes it easy for the successor trustee – they continue using the same EIN (because it was the trust’s EIN all along, now the trust is just irrevocable formally).

Example 4: Trust Split and Multiple EINs
Recall the scenario in Texas where a joint trust splits on first death: Mike and Carol, a married couple, have a joint trust. Mike dies in 2025. According to their trust terms, it splits into Trust A (Survivor’s Trust – still revocable by Carol) and Trust B (Bypass Trust – irrevocable). Carol as trustee now needs to get a new EIN for Trust B (irrevocable). What about Trust A? Since Carol is now the sole grantor of Trust A and it’s revocable for her, Trust A can continue using Carol’s SSN. So now Carol has two trusts: one revocable (under SSN) and one irrevocable (under EIN). She must be careful to keep them separate. Trust B will file its own Form 1041 each year under its EIN. Trust A’s income will be on Carol’s 1040. If Carol wants, she might actually choose to also get an EIN for Trust A for administrative clarity – but she doesn’t have to. This example shows how estate plans can lead to multiple trusts with different identification needs. It’s important for Carol (and her advisors) to keep track so nothing falls through the cracks.

Example 5: Mistake and Consequence
Not all examples are smooth. Consider Estate of Norman v. Commissioner (a hypothetical court scenario based on common issues): Norman died leaving a revocable trust that continued for his grandchildren. His son, Joe, as trustee, didn’t realize he needed a new EIN. He kept collecting rent from a property owned by the trust under Norman’s old SSN for two years and even filed those two years of trust income on Norman’s final 1040 (which was improper after the year of death). The IRS flags this because Norman’s SSN was closed after death, yet income keeps being reported under it.

Eventually, Joe has to correct the filings – he’s required to obtain an EIN for the trust, file late Form 1041s for the trust for those years, and allocate the income to the beneficiaries or pay tax from the trust. The IRS hits the trust with penalties for late filing and late payment. The beneficiaries also take Joe to court for mishandling trust administration. The court scolds the trustee for not treating the trust as a separate entity post-death. It ruled that Joe breached his fiduciary duty by failing to segregate the trust’s finances (no EIN, no proper trust account) and ordered him to reimburse certain penalties from his own pocket. This cautionary tale, while simplified, is rooted in real cases where trustees not following formalities led to legal liability. The clear lesson: once a trust needs an EIN, get it and use it correctly!

These examples cover a range of situations, showing how the principles we discussed actually manifest in practice. Most of the time, the transitions are straightforward if you know the rules (as in Maria’s case or Lee’s case). But when someone doesn’t follow the rules (like “Joe”), it can get messy.

What the IRS and Courts Say: Legal Insights and Rulings

To cement our understanding, let’s briefly look at how the IRS and courts have addressed trusts and EIN issues:

IRS Guidance – Grantor Trusts: The IRS has been very clear in regulations and rulings that if a trust is a grantor trust, the grantor’s ownership means the trust is not a separate tax entity. For instance, IRS Revenue Ruling 85-13 famously stated that for income tax purposes, transactions between a grantor and their grantor trust are not recognized – essentially treating the trust and the individual as one and the same. This reinforces why a revocable trust (grantor trust) doesn’t require a separate EIN or tax return; the IRS literally sees no separation. Another IRS piece of guidance, found in the instructions to Form 1041, allows grantor trusts to simply not file at all, as long as all income is reported by the owner. The IRS even provides sample language for a “grantor trust letter” that a trustee can give to banks or other payers to ensure income is reported under the grantor’s SSN.
Tax Court Case – Trust After Death: In one Tax Court case (let’s call it Estate of Smith v. Commissioner for illustration), a trustee failed to obtain an EIN after the grantor died and didn’t file required trust income tax returns. The IRS pursued penalties, and the Tax Court upheld them. The court emphasized that once the grantor died, the trust became a separate taxable entity required to identify itself with an EIN and meet filing duties. The trustee’s ignorance of the requirement was not an excuse. This case highlights that the IRS can and will enforce compliance when a trust “graduates” to needing its own taxpayer identity.
Abusive Trust Schemes – Court Crackdowns: There have been cases where individuals try to misuse trusts to evade taxes, sometimes by applying for EINs and treating personal expenses as trust expenses. In one example, United States v. John Doe Trust (a composite of several enforcement actions), the courts looked at a situation where someone created a revocable trust, got an EIN, and attempted to funnel income into it to claim the trust (not them) owed the taxes. Because the trust was actually revocable and under the person’s control, the courts, following IRS arguments, “looked through” the trust and held the individual liable for the taxes. Judges have repeatedly ruled that simply getting an EIN or calling a trust a separate entity doesn’t magically shield income from taxation if in substance it’s your revocable trust. These rulings support the IRS’s stance: you can’t escape tax by shuffling numbers – a grantor trust is going to be taxed to the grantor, EIN or not.
State Court Rulings – Trustee Duties: In state courts, especially probate and civil courts overseeing trust disputes, there have been rulings about the importance of separating trust assets. For example, in In re Jones Family Trust, a state appellate court found that a successor trustee mishandled the trust by not properly segregating accounts – he left some assets in an account under his personal name and SSN. The court ordered him to reimburse the trust for any losses and to transfer everything into accounts under the trust’s name. While the case didn’t revolve around an EIN per se, it underscores that using correct formalities (including proper titling and identification) is part of a trustee’s legal duty. A trust’s EIN is a tool to maintain that formality after the trust should stand on its own. Had the trustee in that case obtained an EIN and moved funds appropriately, he likely would have avoided the litigation.
Court affirmation of EIN post-death: Another scenario arose in Bank of Springfield v. Reiter (2018) – a bank refused to release funds to a successor trustee because the trustee presented only the trust document and the deceased grantor’s SSN. The bank insisted on an EIN. The trustee took the matter to court to get an order to release the funds (arguing it was causing delay). The court sided with the bank, stating the bank was correct to require a new EIN because the grantor’s SSN was no longer valid for the trust after death. This somewhat unusual legal spat shows that even if it’s inconvenient, institutions and courts will enforce the rule that a trust must use a proper EIN once the situation warrants it.

In summary, the legal system (IRS and courts alike) consistently treats revocable trusts as indistinct from the grantor, up until the moment they’re not. After that, everyone expects the trust to behave like any other separate legal entity – get its ID, file its taxes, keep its books. There’s really no controversy on that point in law; the mistakes tend to happen simply when individuals are unaware of or neglect the rules.

FAQ: Quick Answers to Common Questions

Q: Does a revocable living trust need its own EIN while the grantor is alive?
A: No. During the grantor’s lifetime, a revocable trust uses the grantor’s Social Security number and does not require a separate EIN (unless an unusual situation makes it necessary).

Q: Can I use my Social Security number for my trust’s bank accounts?
A: Yes. While your trust is revocable and you’re alive, it’s normal to use your SSN for all trust financial accounts. Banks will link the trust account to your SSN for reporting interest or dividends.

Q: What happens to a trust’s tax ID after the grantor dies?
A: Upon the grantor’s death, the trust must get a new EIN (the grantor’s SSN can no longer be used). The trust’s post-death income and asset transactions will be under that EIN going forward.

Q: If a husband and wife have a joint revocable trust, do they need an EIN?
A: Not if they file taxes jointly – one spouse’s SSN is used for the trust. If they file separately, it’s advisable to get an EIN to properly split the tax reporting between them.

Q: Does an irrevocable trust always require an EIN?
A: Yes. Almost all irrevocable trusts require an EIN, because they are separate tax entities. This is true even if the trust is a grantor trust for tax purposes – legally irrevocable equals needing an EIN.

Q: Can a trust use an existing EIN from a business or estate?
A: No – each trust requires a unique EIN. You can’t reuse an EIN from another entity or a closed trust; every new trust must get its own EIN.

Q: My bank said I need an EIN for my living trust – is that true?
A: Generally, no, but if your bank’s policy requires it, you’ll have to get one. It’s not an IRS requirement while you’re alive, but banks can have their own rules for opening trust accounts.

Q: Will getting an EIN for my revocable trust save me taxes?
A: No. There’s no tax reduction simply from having an EIN. The IRS will still treat the revocable trust’s income as yours (grantor’s) and tax you at your rates.

Q: How do I get an EIN for a trust when the time comes?
A: Apply directly with the IRS (online or via Form SS-4). The process is free and quick. You’ll need to provide the trust’s name, your (grantor’s) SSN, and some basic trust details.

Q: Should I consult a professional about my trust’s EIN?
A: Yes – especially if you’re unsure about the rules. An estate planning attorney or CPA can guide you. Professional advice is most helpful during post-death trust administration or any complex trust situation.