separate share trust

[duanecpa]

Grantor of revocable living trust passes on - several beneficiaries - each beneficiary is to open a separate share trust (investment or bank account) is the purpose of the SS-4 to obtain an EIN for Banking purpose? or for Creating a trust?

Thank you.

Duane

[TAXNJ]

Purpose of Form
Use Form SS-4 to apply for an EIN. An EIN is a 9-digit number (for example, 12-3456789) assigned to sole proprietors, corporations, partnerships, estates, trusts, and other entities for tax filing and reporting purposes. The information you provide on this form will establish your business tax account.

https://www.irs.gov/pub/irs-pdf/iss4.pdf

[Burke]

Grantor of revocable living trust passes on - several beneficiaries - each beneficiary is to open a separate share trust (investment or bank account) is the purpose of the SS-4 to obtain an EIN for Banking purpose? or for Creating a trust?Thank you.Duane

It is for both. I would HIGHLY recommend establishing a separate trust EIN for each beneficiary and their respective bank/investment account. Read the trust document. If the proceeds are to be distributed to beneficiaries at some point who are different ages, or for different purposes, t is a nightmare to include all under one. Did it once. Will never do it again!

[duanecpa]

Hi Burke, there are several beneficiaries - however, 2 of the beneficiaries are my client's children. The trust document refers to Separate Shared Trust - According to the instructions in the transmittal letter, before any child can receive any distribution, a tax identification number (TIN) must be obtained for each child's separate share trust. A separate share trust (an investment or bank account).

In this situation, would there be 1 TIN for each child's separate share trust? - for a total of 2 TIN's? and is the reason for the SS-4 application - Banking Purpose?

Thank you.

[ATSMAN]

Hi Burke, there are several beneficiaries - however, 2 of the beneficiaries are my client's children. The trust document refers to Separate Shared Trust - According to the instructions in the transmittal letter, before any child can receive any distribution, a tax identification number (TIN) must be obtained for each child's separate share trust. A separate share trust (an investment or bank account).

In this situation, would there be 1 TIN for each child's separate share trust? - for a total of 2 TIN's? and is the reason for the SS-4 application - Banking Purpose?

Thank you.

I could be wrong but a Shared Trust is where married couples transfer their jointly owned assets instead of separating them and transferring in individual trust. Why can't the children deposit the proceeds into their individual bank account after the trust makes a distribution?

[Burke]

Hi Burke, there are several beneficiaries - however, 2 of the beneficiaries are my client's children. The trust document refers to Separate Shared Trust - According to the instructions in the transmittal letter, before any child can receive any distribution, a tax identification number (TIN) must be obtained for each child's separate share trust. A separate share trust (an investment or bank account).

In this situation, would there be 1 TIN for each child's separate share trust? - for a total of 2 TIN's? and is the reason for the SS-4 application - Banking Purpose? Thank you.

YES. Each child should have a separate EIN for the trust in their name. For a total of 2 EIN's. When a bank account or investment account is established, they would give a copy of the IRS letter designating the EIN to the financial institution for tax reporting purposes. Does the trust document indicate when the proceeds will be distributed to each child? And what the purpose of the trust is? In other words, what can the proceeds be used for? Are these minor children?