An individual owning at least 25% of the ownership interests of a reporting company is a beneficial owner. Regarding whether an individual may hold ownership interests in a reporting company through a trust, the rule states:
“An individual may directly or indirectly own or control an ownership interest of a reporting company through any contract, arrangement, understanding, relationship, or otherwise, including:
- As a trustee of the trust or other individual (if any) with the authority to dispose of trust assets;
- As a beneficiary who:
- Is the sole permissible recipient of income and principal from the trust; or
- Has the right to demand a distribution of or withdraw substantially all of the assets from the trust; or
- As a grantor or settlor who has the right to revoke the trust or otherwise withdraw the assets of the trust.
Related article: What is a Reporting Company?