Does a Charitable Remainder Unitrust Need a Tax ID (EIN) Number?

11 Feb 2020

Yes, every charitable remainder unitrust needs a tax ID in order to maneuver a Trust bank account or to file it’s federal taxes; also because it is a separate entity from the original grantor. The grantor puts an asset into a charitable remainder unitrust, and then the trust holds onto the money and manages it on their behalf. The charity will then pay money out to the original grantor during their lifetime and when the grantor passes on, the trust will give the assets to the beneficiaries.

Once the trust is dissolved, the trust account will no longer need the EIN. The trust’s assets will fully be in control of the charity. Until that time, the trust will manage its own taxes; afterwards, the tax burden (if any) will be in the hands of the charity itself. Charitable remainder unitrusts are a good way to give an asset to charity preemptively while still getting income throughout an individual’s life. An EIN is easy to get for a charitable remainder unitrust, and usually the Trust EIN is acquired online using the official Trust Tax ID (EIN) Application.