The Listen to Lawrence Letter: A trust and tax ID question

READER QUESTION:

We have a Special Needs Trust for our daughter, and our wills were written up by your firm. When we fund it at our death, does it need to have its own Social Security number, or can it be one of the Trustee’s?

MY RESPONSE:

You are creating a SPECIAL NEEDS TRUST (SNT) for your daughter after your death. This particular irrevocable trust will need its own tax ID # (not Social Security number). This is true because the trust is its own taxable entity, and the trustees are not the owners; they are just the unpaid (usually) hired help managing the trust. We provide these tax ID #s for our clients.

And, if anyone you know would like to

receive this Listen to Lawrence Letter

tell them to send their email address to info@davidowlaw.com and I’ll add them to the list!

As always, please send your questions in! If you are thinking about it, others are probably too, so my answers will no doubt help you and many others.

Let’s stay connected. Stay safe!