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#2249425 - 02/19/21 02:25 PM Beneficial Ownership and Trusts
CSB98 Offline
Diamond Poster
Joined: Dec 2003
Posts: 1,218
Wisconsin
Need help on figuring out who the beneficial ownership is on this one.

ABC, Inc. is our borrower. ABC is owned by three separate irrevocable trusts (titled as Jane Doe Irrevocable Trust FBO John Doe). Each irrevocable trust is FBO of a different individual (John, Jack and Judy). So, is the beneficial owner Jane Doe? There are trustees listed for each irrevocable trust, which leads me to believe that Jane is deceased. If that is the case, would the owners be the FBO individuals? This one has me stumped.

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#2249429 - 02/19/21 02:45 PM Re: Beneficial Ownership and Trusts CSB98
BJ Blazko Offline
New Poster
Joined: Apr 2016
Posts: 20
from the FFIEC guidance on page 2 https://www.ffiec.gov/press/pdf/Ben...l%20Entity%20CustomersOverview-FINAL.pdf

If a trust owns directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, 25
percent or more of the equity interests of a legal entity customer, the beneficial owner is the
trustee.

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#2249549 - 02/22/21 08:52 PM Re: Beneficial Ownership and Trusts CSB98
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,000
Cape Cod
If there is more than one trustee for the trust, one of them must be listed as the beneficial owner of the entity (included the "Ttee" abbreviation to make it clear that a trust is involved).
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
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#2249572 - 02/23/21 03:54 PM Re: Beneficial Ownership and Trusts CSB98
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,000
Cape Cod
It doesn't really matter whether Jane Doe is still alive. If she started out as trustee, but later resigned and a successor became trustee, the current trustee is the one that is identified as the owner (with the TTee designation).
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

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