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Have you decided to establish a trust as part of your estate plan in Arizona? Creating a trust involves several steps. In many cases, one of the steps in setting up a trust in Arizona involves obtaining an employer identification number (EIN) for the trust. Trusts may need to obtain EINs in various circumstances. However, even when a trust does not need an EIN, getting one can provide multiple benefits that can make trust administration smoother and less stressful.

Working with a knowledgeable attorney can help you determine whether you need an EIN for a revocable trust, understand the advantages of a trust having its own EIN, and guide you through the EIN application process. Contact Pennington Law, PLLC for an initial case evaluation to learn how to get an EIN for a trust and discuss how our firm can help you structure an Arizona trust tailored to your specific estate and financial planning goals.

What Is an EIN, and Who Is Required to Get One?

An employer identification number represents the federal employer identification number for businesses, tax-exempt organizations, and other entities. This tax identification number serves the same role for companies and legal entities that Social Security Numbers (SSN) serve for individuals. Despite the name, entities may still need an EIN even if they do not employ any staff. An entity or organization will generally  need an EIN if it:

  • Has employees
  • Pays employment, excise, alcohol, tobacco, or firearms taxes
  • Withholds taxes on income, other than wages, paid to a non-resident alien

Other legal entities also need EINs when structured as:

Entities can also apply for an EIN if needed to open bank accounts, obtain other financial services, or file state tax returns.

What Are the Benefits of an EIN for Your Trust in Arizona?

Although certain kinds of trusts do not need to obtain a distinct trust identification number, obtaining an EIN for your trust in Arizona can offer certain benefits, including:

  • Allowing the trust to engage in certain transactions that trigger tax reporting obligations for the trust
  • Keeping the living grantor’s Social Security Number off the trust’s financial documents
  • Avoiding the need to obtain an EIN when the grantor passes away
  • Making it easier to open bank or brokerage accounts or obtain other financial services
  • Simplifying the process for the personal representative and trustee after the grantor’s death

Does a Trust Need an EIN in Arizona?

A revocable living trust in Arizona may not need an EIN if the grantor is still alive, since assets in a revocable trust remain part of the grantor’s estate for tax purposes, and the grantor may need to report information about income-producing assets on their personal tax return. However, a trust will need an EIN if the grantor establishes an irrevocable trust, when the revocable trust grantor dies (which makes the trust irrevocable), or if the trust has tax reporting obligations separate from the grantor.

Even when the Internal Revenue Service does not require an Arizona trust to have an EIN, trusts may still need EINs for practical purposes. Many financial institutions require trusts to have EINs to set up accounts for a trust. Trusts that have tax reporting obligations under Arizona law may also need an EIN to file applicable tax returns.

How Do You Get an EIN for a Trust in Arizona?

A “responsible party” for an Arizona trust can apply for an EIN for the trust. In most cases, the trustee becomes the responsible party for the trust, as they control or manage the trust and its assets. When applying for an EIN, a trustee or another responsible party must provide their legal name and their Social Security Number, taxpayer ID number (TIN), or EIN.

Does It Cost Anything to Apply for an EIN?

No. The IRS does not charge for EINs.

How Long Does the Process to Receive an EIN Take?

Responsible parties can apply for an EIN online through the IRS website. Applying online can generate an EIN immediately. Alternatively, a responsible party can mail or fax a completed Form SS-4 to the IRS. The IRS will then send the EIN within approximately four weeks. Responsible parties located outside the United States can apply for an EIN via fax, mail, or by calling the IRS at 267-941-1099, Monday through Friday, 6 a.m. to 11 p.m. Eastern time. Responsible parties may apply for only one EIN per day.

Why Choose Pennington Law, PLLC?

Hiring experienced legal counsel to establish a trust in Arizona can help you avoid issues or obstacles that can make it more challenging to manage a trust or to carry out your estate planning objectives. Choose the attorneys from Pennington Law, PLLC to help you through each step of the trust formation process because:

  • Our firm has earned national recognition for our work on behalf of our clients, including features in Super Lawyers, The New York Times, and USA Today, as well as top ratings from Super Lawyers and Best Attorneys of America.
  • Our attorneys have extensive experience serving clients in a wide range of legal and financial matters, including asset protection, trust and estate administration, tax planning, and wealth management.
  • We take the time to get to know you and understand your needs, concerns, and goals, offering you tailored legal solutions and advice. Our attorneys will walk you through your estate planning options to help you make informed decisions about how to address your or your family’s needs.
  • Our lawyers understand that you value your quality of life and the work you’ve put into building wealth, so we strive to deliver high-quality work that respects you and your interests.
  • We’ve received numerous positive testimonials from satisfied clients, including this one: “Very professional and all information was thoroughly explained. I would definitely recommend to others.” – Bruce R.

Talk to Our Arizona Trust Attorneys Today

If you want to create a trust in Arizona, you will need to obtain an EIN so the trust can file tax returns. Contact Pennington Law, PLLC today for a confidential consultation with an experienced trust attorney to learn how to obtain an EIN number in AZ.