Corporate Transparency Act: Answers to FAQs with Regards to Estates and Trusts
The recently implemented Corporate Transparency Act (the “CTA”) requires that certain entities report information about themselves and their “beneficial ownership” to the Financial Crimes Enforcement Network of the United States Department of the Treasury (FinCEN). Congress passed the CTA as a part of the worldwide effort to combat money laundering, tax evasion, and other illicit activities. The reporting requirements of the CTA mainly apply to smaller entities seen as having the highest risk of abuse because they are not otherwise subject to oversight. While there have been legal challenges to the CTA , FinCEN has indicated that it will continue to enforce the CTA while these challenges are ongoing. This Q&A addresses the potential impact that the CTA may have on estates and trusts, and will be helpful to settlors, trustees, executors, and beneficiaries of trusts, as it outlines their basic duties under the CTA. Q: Do I need to be worried about the CTA and reporting information t...