Christopher S. Mulvaney,

Attorney and Counselor-at-Law

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THIS WEBSITE INCLUDES GENERAL INFORMATION & THE OPINIONS OF CHRISTOPHER S. MULVANEY. IT IS INTENDED TO STIMULATE A BASIS FOR QUESTIONS RELATED TO YOUR PARTICULAR FACTUAL CIRCUMSTANCES — BEFORE YOU ACT.  THIS WEBSITE DOES NOT CONSTITUTE LEGAL ADVICE. IF YOU WANT LEGAL ADVICE, PLEASE MAKE A ZOOM APPOINTMENT TO SPEAK WITH ME.

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Gonzaga University School of Law – Spokane, Washington – Class of 2002 – Cum Laude The Latin phrase “Deo patriae, scientiis, artibus” translates to “For God and country through sciences and arts”.  The initials A.M.D.G. on the seal of Gonzaga Law School stand for Ad Majorem Dei Gloriam, which is Latin for “For the Greater Glory of God” the Motto of the Society of Jesus (Jesuits): a Catholic religious order founded by St. Ignatius of Loyola.

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Here’s why your revocable living Trust uses your Social Security Number (SSN) during your lifetime when the Trust is revocable and only gets an Employer Identification Number (EIN) by the Successor Trustee after your death for the Fiduciary Tax Return (IRS Form 1041):

During your lifetime (when the trust is revocable)

• IRS Classification: The IRS considers a revocable living trust a “grantor trust.” This means that, for tax purposes, the trust is not considered a separate entity from you, the grantor (the person who created the trust and put assets into it).

• Tax Reporting: As a grantor trust, any income generated by the assets held within the trust is reported directly on your personal income tax return (Form 1040), using your SSN.

• Control and Flexibility: Since you retain control over the trust and can modify or revoke it at any time during your lifetime, the IRS essentially views the trust’s assets as still belonging to you for tax purposes. 

After your death (when the trust becomes irrevocable)

• Change in Status: Upon your death, a revocable living trust automatically becomes irrevocable. This means its terms cannot be changed, and it becomes a separate legal entity from you (the now deceased grantor).

• Need for Separate ID: Because it’s now a separate entity, the trust can no longer use your SSN for tax purposes. Your SSN becomes inactive after death because your SSN is used to by your Estate Administrator to file your final tax return. As soon as that is done, the IRS will not accept any more tax returns using your SSN.
• EIN Requirement: The trust requires its own EIN (Employer Identification Number) to identify it as a separate taxpayer to the IRS. The successor trustee (the person or entity responsible for managing the trust after your death) must apply for this EIN using Form SS-4 and use the EIN to file IRS Form 1041 if distributions will take longer than the calendar year of the final tax return (IRS Form 1040).
• Tax Filing Obligations: With its new EIN, the irrevocable trust will now file its own tax return (Form 1041) to report its income and deductions.
• Longer Distributions: If the trust is set up to make distributions for longer than one year, this reinforces the need for an EIN, as the trust continues to have ongoing financial activity that requires separate tax tracking. 

In essence, a revocable living trust is treated as an extension of the grantor during their lifetime, hence the use of their SSN. However, upon the grantor’s death, the trust transforms into a distinct and separate entity for tax purposes, requiring its own EIN for proper tax reporting and administration. 

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Washington State residents can meet with me in Zoom/DocuSign from anywhere in the world, and I can notarize their electronic signatures because I am a remote online notary.  Just email me an image of your photo ID.