Does a Charitable Remainder Unitrust need a Tax ID (EIN)?

A charitable remainder trust is a type of irrevocable trust, and consequently it does need a tax ID/employer identification number. When forming a CRU, a donor will place assets inside of a trust. For the duration of the CRU, money will go to the donor and their family. But anything that is gained within the trust (such as income from assets and appreciation) will be taxed to the trust itself. The donor and family members are only taxed on the amount of income they personally take. At the end of the charitable remainder trust, the remainder is going to go to a charity.

While the trust exists, it’s managed by a financial advisor, who is acting in the best interest of both the family and the charity who will eventually inherit the assets. A charitable remainder trust is an excellent charity vehicle and tax-management vehicle, designed to preserve as much capital as possible while also donating to the charities that are close to the donor’s heart.


Written by Maurice Mallory