Oct242025
Estate Planning Q&A Series

Will not having a TIN delay the closing process with the realtor? – North Carolina

Short Answer

Yes. In North Carolina real estate closings, the settlement agent must collect a completed IRS Form W-9 for the seller and report the sale, which requires the trust’s taxpayer identification number (TIN/EIN). Without a TIN, the closing attorney cannot finalize documents, disburse funds, or file required tax reports, so the closing will pause until the trustee obtains an EIN. You can usually get an EIN online the same day.

Understanding the Problem

You’re asking whether, in North Carolina, a sale of trust-owned real estate can close without the trust’s TIN. A trustee needs to complete tax reporting at closing, and the settlement agent will not proceed without a W-9 showing a valid TIN. Here, no TIN was ever obtained for the family trust, and the realtor reports the closing cannot move forward without it.

Apply the Law

Under North Carolina law, trustees manage and convey trust property, keep records, and identify trust assets as trust assets. When selling real estate, the trustee must show authority to sell and provide information the settlement agent needs to report the transaction to the IRS. If the trust is irrevocable (for example, after the settlor’s death), the trustee must use a separate EIN for the trust rather than any individual’s Social Security number. The closing attorney will typically require a completed W-9 listing the trust’s TIN before closing or disbursing funds.

Key Requirements

  • Trustee authority to sell: The trustee must have power under the trust to convey real property and may be asked for a streamlined “certification of trust” to prove authority.
  • Separate TIN/EIN for the trust: The trustee should obtain an EIN for the trust (IRS Form SS-4). If the trust became irrevocable at death, do not use a decedent’s or beneficiary’s SSN.
  • Closing tax reporting: The settlement agent needs a W-9 with the trust’s TIN to report the sale (e.g., Form 1099-S) and to avoid backup withholding or funding holds.
  • Records and titling: Keep records, title the proceeds in the trust’s name, and ensure documents identify the trustee(s) acting for the trust.
  • If no acting trustee: A successor trustee may need appointment through the Clerk of Superior Court, which will delay closing.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Because the trust lacks a TIN, the settlement agent cannot accept a W-9 for the trust or complete IRS reporting, which stalls closing and disbursement. The trustee must obtain an EIN (via IRS Form SS-4) and provide it to the closing attorney, along with proof of authority to sell. If the trust became irrevocable at the parent’s death, the trustee must use a separate EIN, not an individual’s SSN, for the sale proceeds and reporting.

Process & Timing

  1. Who files: Trustee. Where: IRS (online EIN application) and with the closing attorney in North Carolina. What: IRS Form SS-4 (to obtain the EIN) and IRS Form W-9 (to provide the TIN to the settlement agent); provide a certification of trust if requested. When: Do this before closing; the IRS usually issues an EIN immediately online, or within days by fax/mail.
  2. Give the W-9 with the trust’s TIN and your authority documents to the closing attorney. The attorney reviews title and documents and prepares the deed for the trustee to sign. Timing varies by county and transaction complexity.
  3. At closing, the attorney reports the sale and disburses funds to an account titled in the trust’s name using the trust’s EIN. You receive closing documents and the recorded deed follows.

Exceptions & Pitfalls

  • Using the wrong number: If the trust is irrevocable, do not use a decedent’s or beneficiary’s SSN; obtain an EIN to avoid reporting issues or backup withholding.
  • No acting trustee: If the named trustee has died or resigned and no successor is in place, you may need a successor appointed through the Clerk of Superior Court before signing a deed.
  • Multiple trustees: If the trust has co-trustees or requires joint action, arrange signatures early to avoid last-minute delays.
  • Documentation gaps: Provide a certification of trust or trustee affidavit to confirm authority; missing proof of authority can stall title clearance.

Conclusion

Yes—without a TIN, a North Carolina trust sale will not close because the settlement agent cannot collect a proper W-9 or complete required IRS reporting and disburse funds. The trustee must have authority to sell, keep records, and title proceeds to the trust. Next step: obtain an EIN for the trust (IRS Form SS-4) and give a completed W-9 and proof of trustee authority to the closing attorney before closing.

Talk to a Estate Planning Attorney

If you’re dealing with a trust-owned property sale that’s stuck over missing tax details, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.

Category: Estate Planning Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.