Filling out SS-4 for EIN for a 3rd party Special Needs Trust

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  • #4627
    Florida
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    A disabled (receiving SSI and Medicaid), life-long friend lost her mother last month. A Special Needs Trust had been set up for her (by a legit trust attorney) to accept her distribution from her mother’s trust which will hopefully happen in the next month or two.

    I have accepted my friend’s request to be her trustee. Her sister was named as trustee in the SNT but her sister, who wants nothing to do with the trust, will be resigning and naming me.

    The trust needs an EIN to file taxes and open a bank account so I was reviewing IRS form SS-4 and I have a couple of questions.

    Question 7a (Responsible Party): The responsible party for a trust (according to SS-4 instructions) is the trustor but the instructions also say the responsible party is the person who has control of the disposition of assets. Putting the trustor’s name makes more sense for a first-party trust but this is a 3rd party trust that no longer has any connection to the trustor. As the trustee, I am actually the only person able to control the assets. Seems like I should put my name and social in 7a and 7b.

    Question 9a (Nature of Entity): I will select the trust box. The grantor’s TIN is also required. Should I use her mother’s SSN as the grantor but include the word ‘deceased?’

    Question 10 (Reason for applying): Not sure whether to select ‘banking purpose’ box or ‘creating a trust’ box. The trust was actually created in 2012 but has never been funded. Does it really matter which box is selected?

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