[WSBAPT] EIN for settlement trust req'd

[Philip N. Jones]

Perhaps if you include provisions that bring the trust within the grantor trust statutes, you could use the beneficiary’s SSN and make the income taxable to the beneficiary.
Phil Jones

Philip N. Jones
Duffy Kekel LLP
Portland, OR
pjones at duffykekel.com
(503) 226-1371

On Oct 16, 2020, at 12:31 PM, Diane J. Kiepe <DJKiepe at depdslaw.com> wrote:


Because the trust is irrevocable, it is a separate tax paying entity.  However, income paid out to or for the benefit of the trust beneficiary will be pushed out and taxed at lower individual rates and not trust tax rates.  I will just caveat this by saying I know of no special exception for settlement trusts.

Good luck -

Diane J. Kiepe

Diane J. Kiepe
Douglas Eden
717 W. Sprague Ave.
Suite 1500
Spokane, WA  99201
djkiepe at depdslaw.com<mailto:djkiepe at depdslaw.com>
509-455-5300

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of John Keckemet
Sent: Friday, October 16, 2020 11:58 AM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] EIN for settlement trust req'd

Settlement trust (irrevocable) approved by court to receive funds related to a minor settlement for personal injuries.  Must an EIN be obtained for the trust?   None would be required if the parents were simply acting as guardians!  Would like to avoid requirement to prepare return or suffer trust tax rate.  Thanks.

John Keckemet, Attorney
<image001.png>

1200 5th Avenue, Ste 1550
Seattle, Washington  98101
p. 206.728.5858  f. 206.728.5863
keck at lka-legal.com<mailto:keck at lka-legal.com>
www.lka-legal.com<http://www.lka-legal.com>

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