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FAQ: Advanced Planning

Q: I received a call from a Financial Advisor whose client has established a trust, which qualifies as a grantor trust under the grantor trust rules. The trust tax identification number (TIN) is the same as the client’s social security number. Is this possible? Shouldn’t the trust have a separate TIN?


Generally speaking, if a trust qualifies for grantor trust status under the rules, all items of income are considered taxed to the grantor, and the trust does not necessarily have to have a separate TIN. Treasury Regulations § 301.6109-1(a)(2) provide that a grantor trust that is treated as owned by a single person under the grantor trust rules does not need to obtain a taxpayer identification number if the trustee furnishes the name and taxpayer identification number of the grantor treated as the owner of the trust and the address of the trust to all payers of income to the trust.