How to Set up a Bank Account for a Revocable Trust Without an EIN
You cannot set up a bank account for a trust if you do not provide the bank with a Taxpayer Identification Number. Employer Identification Numbers are TINs that are used by legal entities including trusts. However, while revocable living trusts are technically legal entities, these trusts are by definition revocable, which means you effectively maintain control of your trust because you can discontinue it at any time. Therefore, as the trust creator, you have the responsibility to pay taxes on the trust's earnings which means that the trust does not need its own TIN.
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Instructions
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Provide the bank with a complete copy of your revocable trust document. This document includes a list of the trust's assets, the names of the trust beneficiaries and the name of the trustee. You can name yourself as the trustee of your own trust, but you can also appoint another individual to act as the trustee.
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Tell the banker your Social Security number and instruct the banker to use it as the TIN on the trust account. If the account earns interest, the bank will send you a 1099 federal tax form that details the interest earnings. You must record this taxable income when you file your personal taxes.
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Give the banker your driver's license or another form of government issued identification. You must also provide your banker with your full legal name, date of birth and physical address. If you appoint someone else to act as your trustee, the bank will require the same personal information from the trustee.
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Write a check payable to your revocable living trust and deposit it into the bank account to complete the account opening process. Make sure to keep a copy of your receipt so you have accurate records of the account activity.
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Tips & Warnings
You can use a revocable trust as a device for passing your assets to your beneficiaries. Assets held in your personal name become part of your estate when you die, and assets that belong to your estate have to pass through probate. Depending on the size of your estate and the number of parties that make claims on your assets, the probate process could take months to resolve. Assets held in a revocable trust bypass probate, which means that your heirs can gain access to funds in a revocable trust bank account immediately after you die.
Laws relating to trust accounts vary from state to state. You cannot open a bank account unless you have a trust document that complies with your state's trust laws. While it normally takes a matter of minutes to open a personal bank account, it can take a few days to open a trust account because the bank's legal department may have to review the trust before you can open the account.
