FinCEN Reporting and Your Estate Plan

If you have been following the news about the Corporate Transparency Act (CTA) and FinCEN’s Beneficial Ownership Information (BOI) reporting requirements, you may have heard about a significant recent development. As of March 26, 2025, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an interim final rule that dramatically narrows who must report — and the good news for most of our clients is significant. However, two separate FinCEN frameworks are in play, and one of them — the new Residential Real Estate Reporting Rule — went into effect on March 1, 2026. This article explains what both rules mean for you.

Background: What Is FinCEN BOI Reporting?

The Corporate Transparency Act was enacted in 2021 to combat money laundering and the use of anonymous shell companies for financial crimes. Under it, many businesses — including LLCs, corporations, and certain other entities created by filing documents with a state — were originally required to report their “beneficial owners” (the real people who own or control them) to FinCEN, a bureau of the U.S. Treasury Department.

This created immediate concern in the estate planning world, because many clients hold assets — including real estate — through LLCs or other entities as part of their overall planning strategy.

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The Good News: Your Revocable and Irrevocable Trusts (Including Absolute Protection Trusts™) Are Not Reporting Companies

Both revocable living trusts and irrevocable trusts used for estate planning have never been “reporting companies” under the CTA — and this is true regardless of whether the trust is revocable or irrevocable.

Here is why: Under the CTA, a “reporting company” is defined as an entity created by filing a document with a Secretary of State or similar state office. In most states, including Georgia, the creation of a trust — whether revocable or irrevocable — does not require such a filing. Because our estate planning trusts are established by a trust agreement, not by filing with any state agency, they fall outside the definition of a reporting company entirely. The CTA’s exemption for trusts is not based on the type of trust, but on how the trust is created.

This means that if your assets are held in a revocable living trust, an irrevocable trust, a special needs trust, or a Medicaid asset protection trust that we prepared for you, the trust itself has no BOI reporting obligation to FinCEN. This applies equally to revocable and irrevocable trusts.

One important nuance: While the trust itself is not a reporting company, if your trust owns an interest in an LLC or other entity that is a reporting company (such as a foreign-formed entity), the individuals behind the trust — such as the trustee, certain beneficiaries, or the settlor — may need to be identified in that entity’s BOI report. For the vast majority of our clients whose trusts hold interests in Georgia-formed LLCs or other domestic entities, this is not a concern under the current rules. However, please contact us if your trust holds interests in any foreign-formed entities.

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The 2025 Rule Change: Domestic LLCs Are Now Also Exempt from BOI Reporting

In March 2025, FinCEN went even further. The interim final rule issued on March 26, 2025 redefined “reporting company” to mean only entities formed under the law of a foreign country that have registered to do business in a U.S. state. This means that all entities created in the United States — including domestic LLCs, corporations, and limited partnerships — are now exempt from BOI reporting requirements.

In plain terms: if your LLC was formed in Georgia (or any other U.S. state), you no longer need to file a BOI report with FinCEN under the Corporate Transparency Act. This is a significant relief for many of our clients who hold property or business interests through domestic LLCs.

Important note: This is an interim final rule, meaning it could be subject to further revision. We will continue to monitor any legislative or regulatory developments and will keep you informed.

A New Development: The Residential Real Estate Reporting Rule (Effective March 1, 2026)

While your trusts are exempt from BOI reporting, there is a separate and brand-new FinCEN rule that could affect clients who purchase or transfer residential real estate through an LLC or trust.

Effective March 1, 2026, FinCEN’s Residential Real Estate Reporting Rule requires that certain non-financed (all-cash or privately financed) transfers of residential real property to a legal entity or trust be reported to FinCEN. This is a separate rule from the CTA’s BOI reporting, and it is aimed at closing money-laundering loopholes in the real estate market.

A transfer is generally reportable under this rule when all three conditions are met:

• Residential real property is being transferred (homes, condos, 1–4 unit properties, or vacant land intended for residential use);
• The buyer (transferee) is a legal entity (such as an LLC, corporation, or partnership) or a trust; and
• The transaction is non-financed — meaning it is not funded by a loan from a bank subject to federal anti-money laundering requirements.

Notably, the filing obligation falls on the closing professional (title company, closing attorney, or settlement agent), not on you directly. However, you will be asked to provide detailed information about who owns or controls the entity or trust at closing.

How Does This Affect Our Estate Planning Clients?

Here is a quick summary of how these rules apply in common scenarios:

What Should You Do?

In most cases, if your estate plan consists of a revocable living trust, an irrevocable trust, or domestic entities, you do not need to take any action regarding BOI reporting. However, if you plan to purchase or transfer residential real property through an LLC or trust using cash or private financing, please let us know in advance so we can help ensure compliance with the new Residential Real Estate Reporting Rule.

We recommend you take the following steps:

• Review any planned real estate transactions involving an LLC or trust, particularly all-cash purchases.
• Contact our office before closing if you are uncertain whether a transaction triggers reporting.
• Keep us informed of any changes to entity ownership or trust structure, as updates may be required.