What Is A Revocable Trust?
Have you been named as part of a revocable trust but have no idea what this is? A trust is a way for an individual to offer an asset to another person. With a revocable trust, the grantor, the individual providing the asset to another, can offer the trust to the other individual but can change or cancel the trust at any time if they want to or if requirements that exist are not met. The asset can also be a source of income for the grantor while they are alive with the full ownership of the asset being transferred to the beneficiary after the grantor’s death. At IRS-EIN-Tax-ID, an EIN number can be filed for online when it comes to a revocable trust or other trust needs.
Setting up the Trust
With a revocable trust, the trust is set up with certain terms made within an agreement. The trustee may be given control of the trust during the life of the grantor or they may not gain control until after the grantor has passed away. This type of trust is not restricted with the probate court.
However, with this trust type, a trust tax ID number must be created. The EIN can be filed for online via the IRS EIN site. The process is simple. Choose the Trust option when filing and then the appropriate paperwork will be provided to you. Once the paperwork is submitted and approval is given, the EIN number is then sent to you via email.
Advantages to a revocable trust include that the trustee can be in charge of paying for the grantor’s health treatment via funds provided. If the trustee is underage, the grantor can choose to provide small amounts of cash to the trustee before they are deceased, helping to ensure the trust remains in place before the grantor passes away.