Certain trustees, beneficiaries, grantors and settlors may own or control a reporting company through a trust or similar arrangement. The following conditions may indicate that an individual owns or controls ownership interests in a reporting company through a trust:
- a trustee (or any other individual) has the authority to dispose of trust assets;
- a beneficiary is the sole permissible recipient of income and principal from the trust, or has the right to demand a distribution or withdraw substantially all of the assets from the trust;
- a grantor or settlor has the right to revoke the trust or otherwise withdraw the assets of the trust.
*Complicated trust situations should be consulted with legal and/or tax counsel.