Revocable Trusts are utilized in estate planning for a number of reasons: probate avoidance, privacy, and incapacity planning are among several reasons. As a general rule, a revocable trust will use the social security number of the grantor rather than obtaining a separate tax id because in most instances, one of the goals of your trust is that the revocable trust is disregarded for tax purposes. If the revocable trust is disregarded for tax purposes, no separate tax return is required for the trust and any income attributed to the trust flows to the tax return of the grantor. Having the income flow to the tax return of the grantor typically results in the trust income being taxed at a lower tax rate.

There may be instances where it is desirable for a revocable trust to have a separate tax id; however, it is important to understand the potential tax ramifications of doing so. It is also important to discuss the matter with a professional, either your CPA or attorney, to be sure that doing so is in your best interest or that of the beneficiaries.

If you are interested in including a revocable trust in your estate plan and want to understand how a revocable trust can benefit you and your loved ones, talk to the experts at Grissom Law, LLC at 678-781-9230. We work with individuals and families to draft and implement estate plans that meet their individual needs using revocable trusts as well as a number of other trusts and documents.

Disclaimer This Blog/Web Site is made available for educational purposes only. In addition, it is available to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney client relationship between you and Grissom Law, LLC.