My Dad passed away in 2006, but had a revocable living trust prepared in 2001 that is in both parent's names. I am successor trustee and P.O.A. Since my Mom is incapacitated, I have been doing everything for my Mom. The Trust doesn't have its own tax ID number, just using my Mom's SS # for anything regarding the Trust. I am assuming that without a tax I.D. number for the Trust, then everything that I inherit will get taxed under my SS# probably meaning high taxes for me and possibly affecting my daughter's financial aid for college, if this happens within three years. There are only a few assets listed in the trust now with the rest listed in my Mom's name. Should I apply for a tax I.D. number for the trust now, and also change the assets listed in my Mom's name to be in the Trust name? How difficult is it to do these things?
The link below will guide you in obtaining a (EIN) tax ID number. The rest of your questions are rather complex and should only be answered after careful review of the trust and the assets both in the trust and those outside the trust. It is not uncommon for all of the assets outside the trust to be directed to a trust with a pour-over will. The problem with a trust is that you have tax issues with the trust. You should really seek the advise of a tax and estate attorney, which I am not.
You need to consult a tax attorney as soon as possible. The trust should have obtained its own tax ID as soon as it is created. It is likely that you already have tax issues related to the trust and don't even know it.
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