I'm trying to set up an account for our trust. The trust is a revocable living trust which we set up with my wife and I as the Trustees and Grantors, and also the benficiaries. It was created in 2018 to protect our assets from probate. It has never had it's own account until now. We are selling our house which is titled in the name of the trust and we were advised by the settlement attorney that we have to have this account set up to receive the proceeds of the sale. Our intent for this account is solely to receive the proceeds from the home sale (primary residence), to immediately be transferred to our individual account.
Fidelity allows pretty quick set up of this account, but it needs a TIN for the account, which I've never set up. I found the IRS website to set up EIN, but not TIN. Further confusing the issue, the TIN info page on IRS talks only about ITIN, ATIN, and PTIN. Nothing about just a straight TIN.
I'm thoroughly bamboozled by this and can find nowhere on the IRS website that speaks to TIN creation. Any help would be appreciated.
TIN stands for Taxpayer Identification Number. This number can be nearly any number assigned for various taxpayers (including taxpaying entities).
EIN stands for Employer Identification Number and is merely a subset of a TIN.
Essentially, the numbers represent the same thing for your revocable trust (simply put, the EIN the trust is assigned is the trust's TIN).
Go back to the lawyer who set up the trust. Or see a EA accountant. I don't think you need a EIN for the Trust. For my parents trust we didn't need to get a EIN until the second person passed. Then the accountant doing the final trust return got the TIN assigned online. Until then you use the primary person's ssn.
@VolvoGirl is correct, @SteveJ57; you really should not need an EIN for a grantor trust unless there are exigent circumstances.
Check with your financial institution and/or your settlement agent to ensure that an EIN is required (for their purposes because it would not be required for your purposes, ordinarily).
And until a 1041 Trust return needs to be filed you just ignore it and file everything on your personal tax return.
Thanks @VolvoGirl and @Anonymous_. I got through to the right person at Fidelity and they said the same. No need for a TIN until the death of a trustee/grantor. SSN only until then. I so appreciate the help!
By the way, you need to fund the trust. When we made our trust last year the lawyer automatically retitled the house into the trust. Then we took the trust (big binder) to the bank and put all our accounts into the trust. Nothing changed like bank account numbers, just the name on the accounts. My husband died in March and I went to the bank and they took his name off as a trustee.