A revocable trust will not need an EIN until the grantor of the trust dies. At that point, the Trust will be required to provide the Trust’s EIN Number in order to access funds and manage bank accounts of the Trust. Revocable trusts are essentially financial accounts that are under the grantor and their own social security number. The grantor can change the terms of the trust at any time, change the beneficiaries, or shut the trust account down completely. However, revocable trusts turn into irrevocable trusts once the grantor dies. The grantor’s own social security number will be “retired” once their last tax returns have been filed, so the revocable trust is going to need to get an EIN and become irrevocable.
Revocable trusts are often used as a form of tax planning. While the revocable trust is open, it can give money to beneficiaries without the beneficiaries having to pay for the full asset. When someone passes on, revocable trusts can also be used as a method to avoid probate as well as inheritance taxes. An irrevocable trust is always going to need an EIN Number, as it’s no longer under the direct control of the grantor. Even if the grantor is still living, they cannot make changes to an irrevocable trust on their own.