Who is the UBO of a trust?

Asked by: Vernice Daniel  |  Last update: December 26, 2025
Score: 4.4/5 (15 votes)

Definition of Ultimate Beneficial Owner The UBO is the one beneficial owner who benefits more than the others. In the case of being represented by a trust, a guardian, or another company, the UBO is the person whom the trust represents.

Who is considered the beneficial owner of a trust?

The term “beneficial owner” shall mean each individual, if any, who owns, either directly or indirectly, 25% or more of the equity interests of a legal entity customer.

How to identify the UBO of a trust?

Step-by-Step Process for Identification and Verification of UBO for AML Compliance
  1. Obtain the Legal Entity/ Legal Arrangement Documents. ...
  2. Identify Ownership Structure and Percentage. ...
  3. Collection and Verification of UBO Identity Documents. ...
  4. Perform AML/KYC/CDD checks on all persons identified as UBOs.

Who qualifies as the Ultimate Beneficial Owner of a trust?

The settlor, the trustee, the protector, the beneficiaries and any natural person exercising ultimate control or influence over a trust by means of ownership or by other means should be all identified as UBOs.

Who is the beneficial owner of a unit trust?

A beneficial owner is an individual who ultimately owns or controls an entity such as a company, trust or partnership. 'Owns' in this case means owning 25% or more of the entity. This can be directly (such as through shareholdings) or indirectly (such as through another company's ownership or through a bank or broker).

Who are the Beneficial Owners of a Trust for the Corporate Transparency Act?

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Who is UBO in a trust?

An Ultimate Beneficial Owner (UBO) is any natural person that ultimately owns or controls the customer and/or the natural person on whose behalf a transaction or activity is being conducted.

Who owns the legal ownership of assets in the unit trust?

The trustee(s) The trustee is the legal owner of the trust property (although not necessarily a beneficial owner), and is responsible for managing the trust fund. Being the legal owner, all of the transactions of the trust are carried out in the name of the trustee.

How to identify the Ultimate Beneficial Owner?

Successfully establishing who the ultimate beneficial owner(s) of an entity is takes place through a series of checks - often via a process known as KYB or as part of an onboarding or ongoing Know Your Customer (KYC), Customer Due Diligence (CDD) or third-party due diligence program.

Is a settlor of a trust a beneficial owner?

11 Further, as to a revocable trust, the settlor thereof will be treated as the beneficial owner of the securities if he has the power to revoke the trust without the consent of another person.

Who has ultimate control of a trust?

In addition to following all directions in the trust document, the trustee is responsible for: Assuming legal responsibility for administration of the trust. Taking control of and protecting trust assets. Handling accounting responsibilities of the trust.

What is the UBOs of trusts?

In the UBO register trusts, trustees must register their trust or similar legal construction and their ultimate beneficial owners (UBOs). Through this transparency, the register helps prevent money laundering, corruption, fraud, tax evasion and terrorist financing.

What qualifies as a UBO?

According to the Financial Action Task Force (FATF) definition, an ultimate beneficial owner (UBO), “refers to the natural person(s) who ultimately owns or controls a customer and/or the natural person on whose behalf a transaction is being conducted.

How do I find out who is beneficiary of a trust?

To find out if you're a beneficiary of a will or trust when you haven't been notified, you can take these steps:
  1. Contact the executor or trustee directly.
  2. Check courthouse records for public information.
  3. Consider seeking legal advice from a probate attorney.
  4. Communicate with other family members for potential insights.

How do you report a trust as a beneficial owner?

For each beneficial owner or company applicant a company is required to report, the company must provide an identifying number from an acceptable identification document as well as an image of the identification document used to obtain this identifying number.

What is an example of a UBO?

For instance, if “Person A” owns 60% of “Company B” through a holding entity “Company C,” Person A is considered the UBO of Company B, as they exercise ultimate control through Company C. UBOs are often identified for compliance and regulatory purposes, ensuring transparency in business ownership.

What is the ultimate beneficial owner trustee?

Who is the Ultimate Beneficial Owner? The term Ultimate Beneficial Owner (UBO) is applied to individuals or entities who meet the beneficial owner definition and their ownership or voting rights are greater than 25%. What is a Protector? A Protector is someone who can be appointed by the settlor to oversee the trustee.

How to identify the beneficial owner of a trust?

Types of Beneficial Owners: Who is Considered a Beneficial Owner?
  1. Any individual that owns a minimum of 25% of the legal entity.
  2. Any individual that holds a significant ability to control, manage, or direct the legal entity.
  3. Any trust that owns a minimum of 25% of the legal entity.

Who is the ultimate beneficial owner of a trust?

The Ultimate Beneficial Owner is the person who benefits the most from a transaction. Although they might be different from the legal owners, they have the ultimate control over an organization.

What is the difference between a grantor and settlor of a trust?

A: The grantor (also known as trustor, settlor, or creator) is the creator of the trust relationship and is generally the owner of the assets initially contributed to the trust.

What is the difference between UBO and beneficial owner?

Traditionally, the ultimate beneficial owner is identified as a natural person who ultimately owns or controls the company. However, there are circumstances where a corporate entity, trust, or similar legal arrangement might be listed as the UBO, especially in the initial stages of ownership identification.

How to find out UBO?

How do banks identify UBOs?
  1. Acquire the organisation's credentials. ...
  2. Research ownership chain. ...
  3. Identify and verify the Ultimate Beneficial Owner(s) ...
  4. Perform an AML and/or KYC check.

What if there is no UBO?

If the ultimate beneficial owner cannot be identified, it should be documented by conducting an appropriate legal analysis. This should include not only a description of the capital structure, but also a consideration of each of the grounds for identification of the UBO indicated in the Polish AML Act.

Who are the legal owners of a trust?

The trustee is the legal owner of the assets held in trust on behalf of the trust and its beneficiaries. The beneficiaries are equitable owners of the trust property.

Who legally owns the assets in a unit trust?

Trusts are legal structures that allow assets to be held by a trustee on behalf of beneficiaries. The trustee legally owns the assets but holds them for the benefit of the beneficiaries. Trusts are established by trust deeds, which set out the rules for how the trust assets are managed and distributed.

Can the trustee of a trust also be the beneficiary?

The short answer to the topic question is yes, in California, a trustee can also be a beneficiary, but there are several serious concerns you need to be aware of to ensure your trust doesn't become legally invalid.