New Successor Trustees Apply for EIN# (Trust)?

Question:

A revocable (living) trust's settlors/trustees have resigned as trustees yet remain alive. Do new successor trustees have to apply for an EIN # for trust instead of using social security number of settlors?

Answer:

It is appropriate to use one of the settlor's SSN's on a "grantor" type trust; i.e. one where the settlor retains control over the trust assets and the income they produce. The fact that the settlor acts as his own trustee is evidence that he has retained such control, but other factors such as the ability to revoke the trust indicate the same thing.

So, the only way to know if the settlor's resignation as trustee means a surrender of power and control over the assets is to read the trust. If you feel it necessary, ask for something in writing from the settlor's attorney or CPA assuring you that the SSN is still the correct number.

First published on BankersOnline.com 2/11/13