This is part 4 of 5 blogs focused on funding trusts that are a part of an estate plan. In the last 3 blogs, we have focused on funding your trust with savings bonds, financial accounts and real property to avoid probate. Today we will focus on funding your trust with your business interest in a small business.
When an individual owns a small business or portion of a small business and passes, in many instances, the deceased’s interest in the business is subject to probate. Because of the uncertainty that results when there is no one authorized to act on behalf of the deceased while a probate is being opened, many business owners choose to include a trust in their estate plans and to transfer their business interest into the trust during their lifetime utilizing an Assignment of Interest.
The Assignment of Interest is a document that transfers the business interest to the trust. As a result of the assignment, when the business owner passes, the trustee of the trust is able to step in and act on behalf of the trust so that the business can continue to function without delay. When transferring to a revocable living trust that is disregarded, the transfer does not result in any change to taxes during your lifetime.
If you are interested in working with a Georgia attorney to create a trust and assist you in funding the trust with your business interest to ensure your business continues uninterrupted upon your death, call Grissom Law, LLC today at 678.781.9230 to schedule a time to meet and discuss your needs.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney-client relationship between you and Grissom Law, LLC.