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Lawyer Lori
Lawyer Lori, Attorney
Category: Estate Law
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Experience:  Attorney - estate planning and probate.
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Do I need a tax ID number for my deceased fathers trust? I

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Do I need a tax ID number for my deceased father's trust? I am the trustee.
Submitted: 4 years ago.
Category: Estate Law
Expert:  Lawyer Lori replied 4 years ago.

Lawyer Lori :

Good morning and welcome to Just Answer.

Lawyer Lori :

Trusts are required to have a tax ID# XXXXX to file taxes each year. However, this is only if there is income of $600 or more. So, it looks like you are good for 2011. However, since there is income you will want to obtain a tax number and file this year.

Lawyer Lori :

It is a fairly easy matter to obtain a tax number. Just use IRS form SS-4 found here: http://www.irs.gov/pub/irs-pdf/fss4.pdf

Lawyer Lori :

Instructions are found here: http://www.irs.gov/pub/irs-pdf/iss4.pdf

Lawyer Lori :

And don't forget, keep track of all expenses so that you can use those as deductions against any income. I would also suggest using a tax accountant to do your first year's taxes (at least).

Customer: replied 4 years ago.
Am I correct to understand since I am renting his home and receiving money from that rent it equates to "income" although it will not entirely cover the total amount still due monthly for his mortgage/fees related to his home? I will still be paying a portion from my own money to cover the balance due.
Expert:  Lawyer Lori replied 4 years ago.
I know this is confusing, but any incoming money is income (gross income according to the IRS) and then expenses are taken.

You never want to mingle incoming money relating to a trust with your personal money, since that can cause accounting nightmares later, so you will need the tax ID to open the account.

I am assuming that at some point in time, the home will be sold. So the money that you are putting in may be reimbursed back to you.
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