IMPORTANT DISCLAIMER: This page provides general information based solely on official IRS primary sources (as of April 2026) and publicly available federal statutes. It is not legal, tax, or financial advice. Trust law and tax rules are complex and vary by state. You must consult a qualified attorney and tax professional before creating or funding any Special Needs Trust. Always verify the latest information directly on IRS.gov. The IRS does not charge for obtaining an EIN.

Introduction

A Special Needs Trust (SNT) is a legal arrangement that allows assets to be held for the benefit of a person with disabilities while preserving eligibility for government benefits such as Medicaid and Supplemental Security Income (SSI). When establishing an SNT, you will almost always need an Employer Identification Number (EIN) from the IRS so the trust can file tax returns (typically Form 1041) and open bank/investment accounts.

The online application is the fastest way to receive your EIN immediately.
Available Monday–Friday, 6 a.m.–1 a.m. ET. Free of charge.

Apply for EIN Online Now – Official IRS Website

3rd-Party vs 1st-Party Special Needs Trusts

Key Distinction: A 3rd-Party Trust is generally revocable. A 1st-Party Trust is irrevocable.
Type Funded By Revocability Medicaid Payback Required?
3rd-Party SNT Family member, friend, or other third party (not the beneficiary) Generally revocable No (unless structured otherwise)
1st-Party SNT
(Self-Settled / (d)(4)(A) Trust)		 The beneficiary's own assets (e.g., settlement, inheritance) Irrevocable Yes – remaining assets must reimburse Medicaid upon death or termination
Note on 1st-party irrevocability: See 42 U.S.C. § 1396p(d)(4)(A) and related federal guidance requiring irrevocability for Medicaid-exempt treatment. Third-party trusts have more flexibility under state law.

Why Does a Special Needs Trust Need an EIN?

According to the IRS:

Most trusts (except certain grantor-owned revocable trusts) must have an EIN to file Form 1041, U.S. Income Tax Return for Estates and Trusts.

Special Needs Trusts are separate legal entities that hold assets, earn income, and make distributions — they require their own tax ID.

Banks, brokerage firms, and other financial institutions will not open accounts for the trust without an EIN.

Primary source: IRS Publication 1635, Understanding Your EIN (PDF) and Instructions for Form SS-4 (Rev. December 2025).

How to Apply for an EIN Online – Step-by-Step

The IRS online application is an interview-style tool. You must complete it in one session (it times out after 15 minutes of inactivity). You will receive your EIN immediately upon approval.

  • 1
    Go to the official IRS EIN application page

    Use the link above — never pay a third-party site. The IRS application is always free.

  • 2
    Select "Trust" as the legal structure / type of entity

    Choose this from the entity type menu at the start of the application.

  • 3
    Enter the full legal name of the trust

    Use the exact name as it appears in the trust document — e.g., "John Doe First-Party Special Needs Trust" or "Jane Smith 3rd Party Special Needs Trust". Do not abbreviate.

  • 4
    Provide the trust's address, county, and state

    This is usually the trustee's address.

  • 5
    Enter the date the trust was created

    This is the date the trust document is signed and funded.

  • 6
    Answer whether the trust has employees

    Usually "No" for most SNTs unless you will have paid staff.

  • 7
    Provide information about the Responsible Party

    For a trust, the responsible party is the grantor/settlor/trustor (the person who created the trust). You must enter their Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). They must have a valid U.S. address and be authorized to control the trust.

  • 8
    Review, submit, and save your confirmation

    Print or save the confirmation letter immediately — it contains your new EIN.

Important IRS Rules for Trusts:
• Only one EIN per responsible party per day.
• You cannot save and return later — complete in one sitting.
• The application is free. Beware of third-party websites that charge fees.

Trust-Specific Tips for Special Needs Trusts

Use the exact name from your trust document — do not abbreviate.

For 1st-party (irrevocable) trusts, the grantor is often the beneficiary themselves or a parent/guardian/court.

For 3rd-party trusts, the grantor is typically a family member.

If the trust is a grantor trust meeting the IRS exception, an EIN may not be required — however, most SNTs are structured as separate taxable entities and do need one.

Once you have the EIN, provide it to your bank, investment advisor, and tax preparer.

Primary IRS source: Instructions for Form SS-4 and Publication 1635. Responsible party rules are detailed on IRS.gov (Responsible Parties and Nominees page).

Sources & Primary References (all accessed April 2026)

  • IRS Official EIN Online Application: IRS.gov
  • Instructions for Form SS-4 (Rev. December 2025) — IRS.gov
  • IRS Publication 1635 – Understanding Your EIN (PDF)
  • 42 U.S.C. § 1396p(d)(4)(A) – Federal statute governing 1st-party SNTs (irrevocability requirement)

This guide is for informational purposes only. Not affiliated with the IRS. Always check IRS.gov for the most current procedures. Last updated based on IRS information as of April 2026.