What is a Revocable Trust? | IRS Definition of a Revocable Trust

A revocable trust is a trust set up by a grantor to manage assets and distribute funds to a beneficiary. It is distinguished from an irrevocable trust in that an irrevocable trust cannot be changed after it’s been created. Revocable trusts are still under the control of the grantor and will use the grantor’s own social security number or ITIN, so it doesn’t require its own EIN when it’s created. A common type of revocable trust is a “living trust fund,” in which a parent or grandparent might make a trust fund for their child or grandchild, to disburse a specific amount of money to them every month or annually.

However, once the grantor passes on, the revocable trust will become an irrevocable trust. The grantor will have their last tax return filed, and their SSN/ITIN will be retired. After this moment, the irrevocable trust is going to require its own EIN. The individual who is maintaining the grantor’s accounts after death can acquire an EIN for the trust so that the trust can continue to be managed as an irrevocable one.