Issues Under the Corporate Transparency Act for Trusts

February 29, 2024New York Law Journal

R. Andrew Shore, partner in Herrick's Private Clients department, authored an article in the New York Law Journal discussing issues and considerations for trusts under the Corporate Transparency Act. Mark Limardo, partner in Herrick's Tax department, contributed to the article.

As the article notes, the CTA constitutes a sea change in the expectations of confidentiality that have been central to estate planning for well over a century. "While trusts themselves are not required to disclose personal information under the act, an entity owned or controlled by a trust may need to collect information that was previously considered confidential regarding the identity of its trustees, grantors, beneficiaries and others for disclosure to FinCEN."

Moreover, under the CTA, estate planners who create or register entities for even the most basic of purposes (such as for holding real estate in a trust) now must disclose their personal information to FinCEN even if they have no beneficial interest in, or control over, the new entity. The article further discusses that it is critical for estate planning practitioners to be informed on the requirements of the CTA, to ensure both that their clients are aware of their reporting requirements and that the practitioners themselves comply with their own duties under the act.

Read the full article in the New York Law Journal here. Access may require a subscription.