Navigating Tax Reporting for Your Trust

How will my Trust be taxed while I am living?

Your Trust & Will Trust is set up as a Grantor Trust, which is a type of Living Trust, meaning it is in effect during your—the Grantor's—lifetime, rather than after passing. means it is essentially ignored for tax purposes

In this case, any income generated by the Trust is taxed to the Grantor rather than the Trust itself. The Trust is not regarded as a separate tax entity, and the income is treated as regular income tax to the Grantor.

In other words, from the Grantor’s perspective, there is no difference when it’s time to report their income for tax purposes. Any income generated by Grantor Trust assets are reported as personal income, just as it would have been before the Trust was created.

Read more in our Learn Center: Grantor Trusts Guide: Definition, Rules & Tax Implications

Do I need a Taxpayer Identification Number for my Trust?

No! Since a Grantor Trust is disregarded for tax purposes, the Trust itself doesn't need a separate Taxpayer Identification Number (TIN).

The Trust uses the social security number (SSN) of the Trust creator as its TIN. This means, for all income tax reporting related to the Trust, you'll use the SSN of the person who established the Trust.

Which SSN should we use for a Joint Trust?

If the Trust is a joint one, like those created by spouses, you have the flexibility to use either spouse's SSN. However, it's important to remain consistent in which number you use for tax reporting purposes.

This information is intended as a reference only. It is not legal advice nor intended to cover every possible situation. Please consult an attorney if you have specific questions. Some details for funding your Trust may change over time. For example, if the Trustee changes, that would likely affect how you would title assets held in the Trust.

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