How Does the Corporate Transparency Act Impact My Estate Planning from A Business Perspective?

The Corporate Transparency Act was designed to tackle issues such as illegal activities like terrorism financing and money laundering. Certain details must be revealed by businesses about beneficial owners with a specific focus on privately held smaller entities that could easily be exploited for illegal purposes.

The Corporate Transparency Act has impacts for trusts and other associated entities. Although a trust on its own is not considered a reporting company under the Corporate Transparency Act, a trust has to disclose information related to anyone with substantial ownership or control and the beneficiaries if the trust controls or owns any interest in the reporting company. This includes any people who have major control over the trust itself or hold a substantial interest in its assets.

These terms, substantial interest and substantial control are broadly defined, which could potentially include trust protectors, beneficiaries who have influence over the trust, individuals indirectly associated with the total trust, who have control exerted in their primary positions within the company, and trustees.

For more assistance with sorting this out and ensuring that you remain in compliance and have reported the appropriate information, set aside a time to meet with a California estate planning lawyer.

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