Gifts from a Trust

Revocable living trust, payments usually entered on individual's record. Once they pass, we enter on a trust record.

"Whether or not a trust needs its own Federal Tax ID number depends on the type of trust. If you are dealing with an irrevocable trust, then a Federal Tax ID number is required. The estate is also required to have its own, separate Federal Tax ID number. However, a revocable living trust does not usually require one because the grantor’s social security number is used for identification while the grantor is alive. Once the grantor passes away, the revocable trust becomes an irrevocable one, at which time the trust would need a Federal Tax ID number."

"Irrevocable Trusts Usually Need Their Own Number. Once a trust has become irrevocable, it usually cannot use the social security number of the trust creator and must obtain its own taxpayer identification number (“TIN”) from the IRS."