New Federal Reporting Requirements Affect Deed Transfers to Trusts and LLCs

Daniel De Paz

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Feb 10 2026 16:59

What Tampa Bay Property Owners and Families Need to Know

Beginning   March 1, 2026 , a new federal reporting rule issued by the   Financial Crimes Enforcement Network (FinCEN)  will impact many common estate planning and asset-protection transactions involving   trusts and LLCs . This rule applies nationwide, including here in   Florida , and will be particularly relevant for individuals and families transferring   residential real estate  into trusts or family-owned entities.

While the rule is intended to combat money laundering and financial crime, it also introduces new compliance considerations—and potential penalties—for property owners who are unaware of the requirements.

 

What Is the New FinCEN Real Estate Reporting Rule?

FinCEN has adopted a rule requiring certain transfers of   residential real property  to   legal entities or trusts  to be reported to the federal government. When a transaction is covered, a report must be filed disclosing information about the property, the transfer, and the individuals who ultimately control or benefit from the entity or trust receiving title.

Importantly, this rule is   separate from Florida law  and   separate from probate or estate administration . It is also different from the   Corporate Transparency Act (CTA)  reporting rules that already apply to many LLCs and corporations.

 

Why This Matters for Florida Estate Planning

In Florida, it is extremely common for homeowners to:

  • Transfer property into a   revocable living trust  as part of estate planning

  • Deed property into an   LLC  for liability protection or family management

  • Move property between family-controlled entities without bank financing

Under the new FinCEN rule, some of these otherwise routine planning steps may now trigger   federal reporting obligations , particularly when the transfer is not financed through a traditional mortgage lender.

 

When Does a Transfer Have to Be Reported?

A FinCEN report is generally required when   all three  of the following apply:

  1. Residential real estate is involved
    This includes single-family homes, condominiums, townhomes, and certain vacant land intended for residential use—property types commonly owned throughout the Tampa Bay area.

  2. The transfer is not financed by a traditional lender
    Many estate planning transfers—such as deeds to a trust or family LLC—are done without bank financing and may therefore fall within the rule.

  3. The property is transferred to a trust or legal entity
    This includes revocable and irrevocable trusts, LLCs, corporations, and partnerships. Transfers directly to individuals are generally excluded.

If these conditions are met, the transaction should be evaluated carefully before closing.

 

Who Is Responsible for Filing the Report?

The obligation to file the report generally falls on the   closing or settlement professional , such as:

  • A title company

  • A closing or escrow agent

  • A real estate or closing attorney

However, property owners and trustees are still responsible for   providing accurate information  about the trust or entity and its beneficial owners. Errors or omissions can create problems for everyone involved.

 

What Information Is Disclosed?

The required report includes:

  • Information about the property and transaction

  • Details about the trust or entity receiving title

  • Beneficial ownership information , which may include:

    • Trustees

    • Grantors

    • Individuals with control over an LLC

    • Certain beneficiaries, depending on the structure

This information is submitted to FinCEN and maintained in a secure federal database. It is not part of the public record, but it is subject to federal enforcement.

 

Are There Any Exemptions?

Yes. Several common Florida scenarios are   not  subject to reporting, including:

  • Transfers occurring at death (such as through probate, trust administration, or survivorship)

  • Transfers pursuant to divorce or court orders

  • Transfers supervised by a court

That said, exemptions are technical and fact-specific. A transfer that appears exempt at first glance may still require reporting depending on how it is structured.

 

What Are the Consequences of Non-Compliance?

Failure to comply with FinCEN’s reporting requirements can result in:

  • Civil penalties , potentially assessed on a daily basis

  • Criminal penalties  for willful violations or false information

  • Delays or complications in real estate transactions

  • Increased scrutiny of future transfers involving the same parties

For families engaging in estate planning, these risks often arise unintentionally—simply because the new rule was not considered when preparing or recording a deed.

 

Planning Ahead Is Key

For Florida homeowners and families, the takeaway is not to avoid trusts or LLCs, but to   plan carefully before transferring real estate . With proper guidance, transfers can often be structured to:

  • Comply with federal reporting requirements

  • Take advantage of applicable exemptions

  • Avoid delays, penalties, and unnecessary disclosures

How We Help

Our firm regularly advises Tampa Bay clients on:

  • Transferring real estate into trusts and LLCs

  • Coordinating estate planning with federal reporting rules

  • Reviewing planned deed transfers before recording

  • Working with title companies and closing agents to ensure compliance

If you are considering transferring Florida real estate into a trust or LLC—or have questions about how this new federal rule may affect your estate plan—we encourage you to seek legal advice   before  the transfer occurs.