You might already have an estate plan for your personal property and accounts, but what about your business? You can protect your business and strengthen your estate plan by assigning your business interests to a living trust. You can transfer your business interest into your Trust but you should discuss with an attorney if transferring the business is appropriate. Depending on the entity, an LLC, S-Corporation, C-Corporation, LLP, etc., certain restrictions or consequences may occur if the right steps aren’t taken.
Whether your assign your business interests or transfer your business to a Trust depends on your long-term goals, including whether you plan to keep the business or sell it within the next year. Even if you do not intend to keep the business for life, but for more than a year, you might benefit from transferring it to a living trust, which is revocable.
By assigning your business to your Revocable Trust, if you become incapacitated, or if you pass, your Trustee can take over and manage the business. Whether the continued management is temporary or a long-term option, by having the business interest assigned to your trust, the management is made easier. Your Trust can dictate the terms that require your Trustee to liquidate your business after your death, give the interest in the business to specific people, or continue managing the business.
Since a living trust is revocable, you can remove the business from the trust at any time, should you decide to sell it during your lifetime. We can create an assignment of shares for any corporation and an assignment of LLC for your interest into a Limited Liability Company.
Speaking with our Georgia estate planning attorneys at Grissom Law, LLC, we will help you determine the best way to protect the business. To learn more about protecting your business in the event you become incapacitated or die, contact Grissom Law, LLC for a consultation.
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.