Can a Trustee be a Beneficial Owner?

Question:  Can a trustee of a trust that owns an interest in a company be a beneficial owner?

Answer: Yes.  A trustee of a trust or similar arrangement may exercise substantial control over a reporting company.  The following individuals may hold ownership interests in a reporting company through a trust or similar arrangement:

• A trustee or other individual with the authority to dispose of trust assets.
• A beneficiary who is the sole permissible recipient of trust income and principal or who has the right to demand a distribution of or withdraw substantially all of the trust assets.
• A beneficiary of a trust with authority to control or dispose of trust assets is deemed to control the ownership interests of the trust in a reporting company held in a trust
• A grantor or settlor who has the right to revoke or otherwise withdraw trust assets.