For the first time, a nonresident alien can take an equity stake in an S corporation, albeit indirectly as a trust beneficiary, without terminating the ESBT and S corporation statuses. This change presents a new opportunity for a nonresident alien to invest in an S corporation without compromising the entity's S corporation status. To be clear, the long-standing prohibition on a nonresident alien's being a direct S corporation shareholder (Sec. 1361(b)(1)(C)) was left intact. Accordingly, it is still necessary to ensure that under no circumstance could the trust distribute S corporation shares to a nonresident alien beneficiary, as such a distribution would jeopardize the trust's status as an ESBT as well as the S corporation status.