The U.S. legal system makes numerous provisions for individuals, companies and organizations to protect themselves and carry out their responsibilities should they be unable. In addition, these provisions can also protect the rights of those who are dependent on these entities by ensuring that someone is put in charge to follow laws and regulations. Two common remedies are receivership and guardianship.
Receivership Versus Guardianship
In general, a receivership is a legal situation whereby a company or organization is being held by a receiver. That person is appointed to be responsible for the assets or property of the entity to ensure financial obligations, laws and regulations are satisfied after the entity is no longer able. Typically, receivership can be divided into two categories: one meant to take over the affairs of another due to insolvency, that is, bankruptcy; the other, because of mental health issues or because the entity is no longer following laws and regulations.
Guardianship, on the other hand, is the appointment of an individual to be the legal protector of another individual’s personal or financial assets. Guardians are typically appointed in three cases. They include representing a minor, an individual who is developmentally disabled, or an ailing senior suffering illness or old age. In the case of a minor, parents are usually considered the legal guardians unless they seek to appoint someone else to that role. Developmentally disabled individuals are also typically cared for by their parents until they reach adulthood, upon which time the parents can seek to become legal guardians. Finally, the elderly must go through a hearing to determine if they are unable to care for their own affairs, after which a court may agree to appoint someone to this position.
If you are facing any of these predicaments, reach out to a qualified attorney for assistance.
Applying for an EIN as a Guardianship
You should apply for an EIN online as a guardianship if any of the following apply to you:
Applying for an EIN as a Receivership
You should apply for an EIN as a receivership if you have been appointed as the receiver for an insolvent partnership, corporation, or person (during an equitable or legal proceeding) in order to liquidate assets to pay creditors.
Trust EINs, Guardianship and Receivership
Trusts include bankruptcy estates, charitable lead unitrusts, charitable lead annuity trusts, charitable reminder unitrusts, charitable remainder annuity trusts, custodianships, conservatorships, escrows, GNMA (Ginnie Mae), FNMA (Fannie Mae), guardianships, pooled income funds, irrevocable trusts, qualified funeral trusts, revocable trusts, receiverships, settlement funds under IRC Sec 468B and other trusts not listed.
If you have been appointed guardian or receiver of a trust, you should apply for an EIN as necessary in relation to your position within the trust.
IRS-EIN makes it simple to apply for an EIN as a receivership or guardianship. You can apply online and get your EIN the same day, in most instances. We help you understand which documents you will need to apply for your EIN and what the process is. Throughout the application and approval procedure, we are here to guide you and answer any questions you may have regarding filing for an EIN as a receivership or guardianship.