The Corporate Transparency Act of 2020 (CTA), passed on January 1, 2021, is designed to prevent malign actors, i.e., companies that seek to conceal their ownership of businesses in the United States in an effort to facilitate illicit activity such as money laundering, financing of terrorism, tax fraud, and other acts of foreign corruption, from harming the national security interests of the United States and its allies. But why should this be of any interest to estate planners?

From sweeping new tax proposals to an extension of the Paycheck Protection Program, we have recently seen significant developments in estate planning and business law. To ensure that you stay abreast of these legal changes, we have highlighted some noteworthy developments and analyzed how they may impact your estate planning and business law practice.

Language can be tricky, imprecise, and confusing. When drafting legal documents, it is important to convey a certain meaning without needing external input on deciphering that meaning. After all, these documents may need to be interpreted after the person expressing their wishes has died or is incapacitated. Having a legal document with a term that can be ambiguous can lead to family discord, a lack of the Grantor’s intent being carried out, and even litigation.

In a case out of Texas, the meaning of the word spouse was litigated. Here, the Grantor left a share to her son’s spouse. To whom did spouse refer? Did it refer to the son’s spouse at the time the trust was established and executed, or did spouse refer to his wife at the time the trust was administered after the Grantor’s death?