What is a Tax Identification Number | Selling a House in Probate | Selling a House in a Trust
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What is a Tax Identification Number | Selling a House in Probate | Selling a House in a Trust

So what is a tax identification number when selling a probate house or house in a trust Hi im Kim Ward San Diego realtor Author of what to do when you’re responsible for real estate a loved one leaves behind and certified probate real estate advisor that’s a lot thanks for joining me today if you find this info helpful please hit the like button feel comfortable leaving a comment and when you subscribe and hit the bell button you’ll be notified of any new videos on my channel So lets get started! when someone passes away the executor administrator or trustee for managing the probate house or house in a trust and the money and assets of the deceased loved one the money the house and other assets are commonly referred to as an estate the estate passes on to the people entitled to it the beneficiaries or the heirs one of the responsibilities of the executor administrator or trustee is to collect all the decedents assets including the house the personal property financial accounts pay creditors sell the house and personal property and eventually distribute the remaining estate to the heirs and beneficiaries the San Diego probate court authorizes the executor or administrator of the deceased to act on the decedents behalf via letters of administrator or sometimes referred to as the letters of testamentary this grants the executor or administrator legal and tax authority over the estate back to the original question What is a tax identification number when selling a probate house or house in a trust do I need it? the simple answer is yes a identification number or EIN is necessary when acting as a San Diego executor administrator or in the case that the decedent had a trust the San Diego trustee by the way EIN is an acronym for Employer Identification Number but it is also known as a Federal Tax Identification Number so that’s what we will refer to in the remainder of this video EIN the Internal Revenue Service issues EINs it will be a nine digit number specific to the estate in the case the decedent had a trust during the decedents life it is typically revocable and taxes are paid by what is referred to as the grantor your loved one and that’s as an individual using the grantors social security number when the grantor passes away the living trust then becomes irrevocable and the San Diego successor trustee will pay the decedents taxes via the EIN instead of the social security number in the case that a trust was not completed then the San Diego executor or administrator through the San Diego probate will also need an EIN when representing the estate that’s the way the IRS can be certain that any taxes owed by the decedent are collected and we all know the IRS cannot be ignored the executor administrator or trustee will filed income tax returns for the deceased including any years that the deceased failed to file taxes before passing away they also need to file taxes for the estate which will require an EIN the only scenario that an EIN is not necessary is in the case that the trustee also is the surviving spouse and all assets have been left to the surviving spouse when that is the case the surviving spouse may use their own social security number for tax reporting purposes as the San Diego executor administrator or trustee you’ll need the EIN to open a bank or brokerage account for the estate because all financial institutions use the EIN to report the interest earned on any of the accounts until the funds are distributed to the beneficiaries and you’ll need a specific new account to manage all the funds for the estate so you’ll need to go through the exercise of opening a new bank account using the EIN ok so how to apply for an EIN the most convenient way is the apply through the IRS website at www.irs.gov its not a difficult process a San Diego trustee executor or administrator can complete the online version of the request or print out the IRS form SS-4 application form and complete by hand my team and I have a purpose of helping our clients press the easy button and part of that is that we’ve helped many of our clients obtain an EIN and we can help you too its never too early to reach out to me and get accurate answers to any questions around the real estate and the steps through preparing marketing and selling a probate house or house in a trust feel comfortable reaching out by commenting below or just calling me hey and don’t forget to subscribe


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