Juliya L. Ismailov of Sullivan & Worcester. Courtesy photo
For at least two years, attorneys involved with the formation of corporate entities (including members of the trusts and estates community) have considered what impact the Corporate Transparency Act (CTA) might have when it came into effect on Jan. 1, 2024. Now that the effective date has arrived, these theoretical questions have shifted to the more practical ones of what must be done to comply with the CTA and who is responsible for such compliance.
This article discusses the background of the CTA, its legislative framework and definitions, and—specific to the trusts and estates arena—what issues might arise with respect to reporting an ownership interest held in a trust.
