Often times we give a gift with good intentions and do not intend on altering the gift or changing any conditions to said gift. However, sometimes with investment gifts, we may not want it to be so permanent. If you would like to give a trust where you may change your mind regarding the conditions of it then you will need a revocable trust. If you are receiving a revocable trust, know that you will need a federal tax ID number which can be obtained through IRS-EIN-Tax-ID easily and quickly with our 24 hour online application.
A revocable trust comes with many advantages and disadvantages. One advantage is that it allows the grantor, the person who is gifting an asset, to change their minds and either change the conditions to the trust or completely cancel it if desired. The grantor is also able to earn income from it while the grantor is still alive. Other benefits include that the grantor can set requirements for the trust, such as the receiver of the trust may only be allowed to receive smaller amounts of money periodically if they are a young beneficiary.
On the other hand, a revocable trust is not unflawed. A disadvantage of a revocable trust is that it will be more expensive and tedious as it requires constant tax filing till the grantor’s death. The grantor will also need to keep it regularly updated. While the beneficiary will need to obtain a trust tax ID, it is a fast and convenient process through our website.
If you are in the process of receiving a revocable trust, you will need to apply for a federal tax ID number on IRS-EIN-Tax-ID or you may check our FAQs page to review or develop a better understanding.