Do you need a tax ID number for your trust?

If your trust is a grantor trust, under IRS rules, a separate tax ID number is not required. Any income will be taxed to the Grantor, using the Grantor’s social security number at the Grantor’s individual tax rate as opposed to the trust/estate tax rate.

On the other hand, if the trust is a non-grantor trust, the trust must get its own tax ID number and it will pay taxes on the income under the trust/estate tax rate.