Using SSN As TIN For A Irrevocable Living Trust?

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Question:

We have a customer changing an account to an irrevocable living trust, using her social security number as a TIN. I don't have anything that says that she is required to have a separate TIN. What are your thoughts?

Answer:

Take a look at the instructions on IRS Form W-9. For a true trust, the IRS wants the depositor to supply the TIN of the trust.

It's only for a revocable "donor" trust that the IRS wants the SSN of the donor. Once that trust is made irrevocable (by action of the donor or by death of same), trust tax returns have to be filed, and a need for an EIN develops.

First published on BankersOnline.com 8/12/02