Understanding the Corporate Transparency Act
Advancements in technology, security issues, and drastic changes in the economic landscape resulted in a global push toward financial transparency. Such a move aims to prevent money laundering, terrorism financing, and other financial crimes facilitated through opaque business structures.
Thus, the CTA came like a gator sliding into the swamp – quietly but with a presence you can’t ignore. Its goal? To snap at the heels of money launderers and financial fraudsters by making business ownership more transparent
As mentioned earlier, certain businesses now have to report their beneficial owner information (BOI) to FinCEN. Think of it as telling Uncle Sam who really holds the keys to the family treasure chest.
Beneficial owners, as defined by the Act, are individuals who have direct or indirect substantial control over an entity or own a significant percentage of it. This broad definition ensures that the CTA captures a wide range of controlling interests, making it harder for individuals to use complex structures to evade scrutiny.
However, BOI reporting isn’t just about big corporations; it’s about the small fish too. If you own a business or have an entity tied into your estate plan, you might need to report who’s behind the curtain. Yes, that could include you, your Aunt Sally, or anyone with a controlling interest.
Then, how does this BOI requirement impact your estate plan?
The Estate Plan
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