A charitable lead unitrust is a special type of trust that provides income to a charity for the duration of its existence. Once the charitable lead unitrust expires, the assets can be inherited by a beneficiary. A charitable lead unitrust is used as a form of wealth management, so an individual is able to retain assets within the family without having to carry the tax burden for it.
Since a charitable lead unitrust is an irrevocable trust, it needs its own Trust Tax ID Number. Whenever a trust account is irrevocable, it has to file its own tax returns and pay its own taxes. A Trust Tax ID (EIN) Number will allow the Trust to manage its own taxes. Filing for a Trust Tax ID / EIN is a simple task that can be done online. Once the charitable lead unitrust is dissolved, the EIN will no longer need to be used, and the assets will transfer to the beneficiary’s own social security number. You can obtain your EIN online in less than 1 hour.