Corporate Transparency Act for Trusts and Estates

The CTA requires beneficial ownership information reporting for entities unless an exception is met. The CTA is wrought with complications and unanswered questions, particularly for trusts, estates, and high net worth individuals. Trusts are only considered reporting companies if they are created by the filing of a document with a secretary of state or similar office (such as a statutory or business trust), however, trusts often hold ownership interests and/or have substantial control over reporting companies, which requires close examination of the trust terms and individuals with a role in the trust.

High net worth individuals often utilize corporate entities and trusts to transfer wealth and protect their privacy. Even though the Financial Crimes Enforcement Network (“FinCEN”) database is not publicly available, individuals will need to be careful as they collect and store any personably identifiable information needed to fulfill the reporting requirements. In addition, the reporting requirements will add an ongoing administrative consideration for these family wealth planning structures. The CTA regulations are complex when it comes to identifying reportable individuals where trusts are involved, and reporting companies will need to actively monitor for any changes that would require an updated CTA report to be filed. The penalties for non-filing are severe. A person who willfully violates the reporting requirements may be subject to civil penalties of up to $500 (adjusted for inflation) for each day that the violation continues, and may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000. Fiduciary advisers must fully understand how the new CTA requirements impact beneficiaries and trustees.

Listen as our panel of wealth transfer experts analyzes the CTA's requirements as they pertain to trusts and estates.

1. CTA for trusts and estates: introduction
2. Reporting requirements
3. Responsible reporting party
4. Completing the form
5. Penalties for noncompliance
6. Best practices

The panel will review these and other critical issues:

• Who is reported if a trust has substantial control or has a 25% or more ownership interest in a reporting company?
• What penalties could be assessed for not complying with the CTA?
• When is a trust subject to the reporting requirements under the CTA?
• What are the responsibilities of fiduciaries, beneficiaries, and trustees under the CTA?

Learning Objectives

After completing this course, you will be able to:

• Identify due dates under the CTA
• Ascertain who is responsible for reporting beneficial owner information
• Determine what information is reported for beneficial owners
• Identify what penalties could be assessed for noncompliance

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of estate, gift and trust taxation including various trusts types, the unified credit, and portability.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).