Monthly Archives: September 2025

For years, the Department of the Treasury was concerned that all-cash residential real estate transactions offered an opportunity to launder illicit funds.  Bank-financed purchases already fall under lender Anti-Money Laundering (“AML”) obligations, but transfers that bypass institutional financing historically received far less scrutiny. Financial Crimes Enforcement Network (“FinCEN”)’s new residential real estate reporting requirement closes that gap by requiring reporting for non-financed real estate transfers to legal entities and trusts. The reporting requirement seeks to increase transparency in the residential real estate sector and deter money laundering.

Under the new reporting requirement, any transaction involving the transfer of residential real property to a legal entity or trust that does not involve a bank, or other financing, needs to file a report.  Covered “residential real property” includes single-family houses, townhouses, condominiums, cooperatives, and land intended for one-to-four family residences. Properties with mixed residential and commercial use may also qualify as “covered residential real property” if the structure contains a residential unit. A “transfer” broadly means any change in ownership, whether by deed or, for cooperatives, through shares or membership interests. The rule focuses on all-cash transfers to entities or trusts, meaning those without financing from a lender. It applies regardless of the purchase price and includes gifts or transfers with no payment.

The central question becomes who must file the report. FinCEN assigns this duty to the “reporting person,” generally the professional most directly responsible for the closing. The rule uses a “reporting cascade” to determine the responsible party.  Priority goes first to the settlement agent listed on the closing statement, then to the person who prepared the statement, then to the party who filed the deed, etc., through a defined list of individuals involved in the transaction.  The rule assigns responsibility to one reporting person only for a given transfer, though parties can also enter into a written designation agreement to shift that duty from one qualified participant to another. For Estate Planning attorneys who occasionally handle deed work directly, this framework means you could unexpectedly find yourself in the reporting role.

Understanding what counts as a “covered transferee” is critical. The rule looks for situations in which a legal entity—like a Limited Liability Company (“LLC”), corporation, or a trust acquires the property. Placing a rental property into a newly formed LLC triggers the requirement to report.    Likewise, deeding a beach house to a trust for the benefit of children also falls under FinCEN’s microscope. An individual deeding property into their own revocable grantor trust without consideration, does not trigger the requirement to report. Additionally, transfers because of death, divorce, bankruptcy, or pursuant to certain court orders also fall outside the rule’s scope.

FinCEN expects detailed information in these reports. A reporting person must disclose identifying information about the transferee and any beneficial owners behind an entity or trust. That includes names, dates of birth, addresses, citizenship, and taxpayer identification numbers. For trusts, the reporting person needs to know the grantor, trustee, and certain beneficiaries. Attorneys who have spent the past year digesting the Corporate Transparency Act’s beneficial ownership framework will recognize the overlap. The trigger here hinges on acquiring residential real estate without financing, rather than the existence of an entity.

Consider how this might play out in practice. A long-standing client asks you to help deed their vacation home into a family LLC for asset protection. In the past, you might have drawn up the transfer documents, filed them, and never given another thought to the transaction. After December 1, 2025, that same task requires you to determine whether you are the reporting person and, if so, to file the Real Estate Report using the Bank Secrecy Act filing system at  https://bsaefiling.fincen.treas.gov/main.html.  Reports need to be filed with FinCEN by the later of the last day of the month following the month of closing or 30 calendar days after closing. Imagine a parent transferring the family residence to fund a trust for children. FinCEN now flags that once-routine estate planning technique as a transaction with potential for money laundering that requires reporting. Even if you are not the reporting person because a title company handled the filing, your client’s trust information will be part of the report. This flies in the face of the idea espoused by many Estate Planning attorneys that trusts offer privacy.

For many, the initial reaction may be surprised that ordinary trust and family transfers are now subject to federal anti-money laundering reporting. FinCEN seeks to prevent the use of legal entities and trusts to purchase residential real estate with illicit funds. In practice, this means that even routine transfers without a hint of misconduct fall under the reporting rule requiring disclosure of substantial personal and ownership information about clients.

FinCEN’s residential real estate reporting requirement takes effect on December 1, 2025.  As this article demonstrates, the rule has some complex provisions that have broad applicability. This article provides only a brief synopsis of the most relevant provisions. Estate Planning attorneys who handle deeds, trusts, and family property transfers fall squarely within the rule’s scope, regardless of whether they serve as the reporting person. Preparing now by understanding which transfers are reportable, identifying the reporting person, and collecting the required information will help attorneys guide clients smoothly and avoid surprises. Taking these steps ensures that clients remain compliant and well-prepared for the new reporting obligations.

I really wanted to watch the Monday night football game, and I really needed to write this blog, so I thought I’d do both and write a blog about what football and Estate Planning have in common. Turns out it’s more than you think. Both Estate Planning and football focus on strategy, teamwork and preparing for the future. Both require assembling the right team, adapting to changes, and defining clear goals. To reach the desired conclusion, both Estate Planning and football require foresight, determination and a bit of grit. Finally, in both, it’s important to remember that it’s not over until it’s over.  While a game ends only once the final whistle blows, a well-drafted Estate Plan may not be subject to change after death but often lives well beyond the life of the individual who created it.

As we settle in for the first weekend of football, let’s explore what a football team and an Estate Plan have in common. Both require a solid game plan.  For football and Estate Planning alike, the game plan serves as the roadmap to achieve a specific objective, be it winning the game, or securing a legacy.  The “game plan” to secure a legacy for Estate Planning involves discussing the goals of the individual making the plan. Once the goals have been set, then the attorney drafts documents that create the Estate Plan.  Finally, once the individual has executed the documents creating the plan, the client, the attorney, and others work together moving assets, updating beneficiary designations, and filing required paperwork to implement the Estate Plan. Like the various plays executed by a football team, the legal documents for an Estate Plan’s create the “playbook” in Estate Planning. Well-drafted Estate Plans provide instructions for what happens both during life and at death. A comprehensive Estate Plan consists of a Living Trust, also known as a Revocable Trust (a “Trust”), a Will, a Property Power of Attorney, a Healthcare Power of Attorney, an Advanced Medical Directive, and a Health Insurance Portability and Accountability (“HIPAA”) Authorization.  Preparing these documents, much like the game plan, is only the beginning.  As in football, application and execution of the “game plan” matters.

In addition to a great game plan, both football and an Estate Plan require a strong team to enact the plan. In Estate Planning, the attorney serves as the quarterback and needs supporting players such as a financial advisor, a certified public accountant or other tax professional, as well as other specialists. Each individual member has specific roles and responsibilities and brings their own expertise to the “game.” When these parties work well together, they create a seamless plan with flexibility. However, just like a football team, if a member of the Estate Planning team fails to do their job properly, that failure can have disastrous consequences. Much like the far-reaching impact of a quarterback throwing an interception or a defender missing a tackle, an individual failing to accomplish their portion of the plan may lead to significant unintended and negative consequences. Those consequences range from additional taxes or loss of government benefits to creditors obtaining access to or misappropriation of assets. Just like on the football field, minor mistakes have major consequences. Estate Planning, like football, presents opportunities to learn from mistakes and to evolve.

Not only does each team member need to complete their job in both football and Estate Planning, but each needs to adapt when circumstances warrant it. The football team needs to alter its offensive or defensive plays if they are not producing the intended results. Likewise, the attorney and the team responsible for creating and implementing the Estate Plan need to pivot when family dynamics, beneficiary needs, or finances change. Even in the absence of such changes, both football teams and estate planning clients need to review the playbook periodically to ensure that it continues to meet needs and respond to new challenges.

In both football and Estate Planning, sometimes the best offense is a good defense. Drawing parallels between the two was easier than I thought, after all, both focus on strategy, teamwork, preparing for the future, assembling a team of experts, adapting to changing circumstances, and defining clear goals to ensure a successful outcome. Finally, both require a flexible approach to address as many unknowns and potential outcomes as possible. In both, it’s impossible to predict everything, although it’s incumbent upon the team to address as much as possible. Thankfully, my team was able to do that on Sunday. For most of the game, it looked like they were going to lose. Instead, they never gave up, continued to adjust, and ultimately had faith in one another and relied upon their teammates. That winning combination allowed them to prevail, much as it does for an Estate Plan. If you are looking to secure your win, reach out to me about how I can help you structure your Estate Plan thereby securing your legacy.