The Corporate Transparency Act and Revocable Living Trusts
Jul 08, 2024This is one of those uncommon times I tell my clients it is important to stay updated with the office newsletter because that is where we post information about critical updates in the estate and Medicaid planning world. For this one, it is mainly small business owners under The Corporate Transparency Act. So if you have a corporation, limited liability company, or other corporate entity, then you have actions you need to take.
Rather than doing a specific educational video on this, I am instead referring you to a webinar created by a fellow estate planner and advisor named Nora Hartquist who explained the Act to professionals and how it impacts our estate planning clients. You can find this video on The Estate Planning Source's YouTube channel here: https://www.youtube.com/live/WXkdHxszBTc?si=XY-8LIJRP4BxiuAL
WHETHER YOUR CORPORATE ENTITY IS IN A TRUST OR NOT, THERE ARE REPORTING REQUIREMENTS UNDER THIS NEW FEDERAL LAW. PLEASE REVIEW THE ABOVE VIDEO IF YOU ARE AN OWNER OR OFFICER OF A CORPORATE ENTITY.
Our office is putting together a streamlined way to assist our clients with this reporting requirement before the deadline in a just a few months and hope to have everyone who wants our help to be up to date by the end of November. People who need to contact us (or another professional):
* You are a direct shareholder in a small business, member of a limited liability company, or a partner in a limited partnership
* Your trust is a direct shareholder in a small business, member of a limited liability company, or a partner in a limited partnership
This does not include if you are simply an investor in a publicly traded company and own stock, unless you meet the definition of being able to exercise "substantial control," which means 25% ownership or more. The important convergence with revocable living trusts is that if you transferred your business interests into your revocable living trust, then your trust is a beneficial owner required to report that ownership under the Act.
If you need assistance under the reporting requirements of The Corporate Transparency Act, especially if you have a revocable living trust that has ownership over the business interests, then please call the law firm to set up an appointment at 919-844-7993.
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