Tax ID Numbers – A Primer

This is greatMitchell Port of the California Tax Attorney Blog has published a succinct summary of when you need a tax ID # and why.

Tax ID #s are some of the basic tools of estate planners.  But when you need one and why is not something that everyone agrees on.  Tax ID #s are also used in the entity context with LLCs, Corporations and Partnerships:

Trusts
You will be required to obtain a new EIN if any of the following statements are true.
• One person is the grantor/maker of many trusts.
• A trust changes to an estate.
• A living or intervivos trust changes to a testamentary trust.
• A living trust terminates by distributing its property to a residual trust.

You will not be required to obtain a new EIN if any of the following statements are true.
• The trustee changes.
• The grantor or beneficiary changes his/her name or address

Estates
You will be required to obtain a new EIN if any of the following statements are true.
• A trust is created with funds from the estate (not simply a continuation of the estate).
• You represent an estate that operates a business after the owner’s death.

Read the rest of Mitchell’s post for the rest of his very helpful list.  Thanks Mitchell!

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