Our Business Living Trust service prepares a legal document that ensures the seamless transfer of a business owner's assets and business interests to their chosen beneficiaries. This trust provides protection for the business assets and allows the business to continue operating smoothly, even in the event of the owner's incapacity or passing.
With our expert guidance, we can help business owners establish a trust that meets their unique needs and goals, providing peace of mind and security for their business and loved ones. Our team of experienced consultants can walk you through the process of setting up a Business Living Trust, ensuring that all necessary legalities and important details are taken care of. Trust our expertise to secure the future of your business and protect the legacy you've worked so hard to build.
Business Living Trust
1. Identifying Your Needs: We help you to determine the specific goals and objectives you want to achieve with the trust, such as asset protection, estate planning, or tax benefits.
2. Selecting a Trustee: We consult you in choosing a trustworthy individual or entity to manage the trust assets and carry out the terms of the trust.
3. Drafting the Trust Agreement: We create a legally binding document outlining the terms of the trust, including the beneficiaries, assets, distribution rules, and other important details.
4. Funding the Trust: We instruct you on transferring ownership of assets into the trust, ensuring they are properly titled and documented.
5. Signing and Notarizing: You then execute the trust agreement by signing it in the presence of a notary public to make it legally valid.
It's important to work with an experienced advisor like us to ensure that your business trust is set up correctly and aligns with your specific needs and goals. Let us know if you have any other questions or need further guidance!
Functionally, a business trust is quite similar to an individual or family trust. It helps delegate control of assets to a trustee, who manages the trust and its contents on behalf of the grantor. An individual trust typically contains assets such as money or property, but a business trust holds the rights to an individual’s stake or interest in a business. As a result, a business trust can be the legal entity that technically owns a business.
Business trusts can have one or multiple beneficiaries. A business can be owned by multiple trusts and entities or just a single one. They are primarily used to safeguard against taxes and liability, as trusts tend to have different legal protections than individuals. However, the specifics of these rules can vary by state.
How Does a Business Trust Work?
A business trust is a legal agreement. In turn, the process of creating one typically begins with a conversation between the involved parties and a trust lawyer who can help define the terms of the agreement. Following this, the trust is legally created through what is called a declaration of trust.
The declaration of trust details the terms of the trust and delegates instructions and responsibilities for the trustee. These may include the valid length of the trust and the duties, powers and interests of the beneficiaries. Once the terms are settled, the one who owns the trust signs the declaration, officially creating it in the process.
The trustee of a business trust has a fiduciary duty to act in the best interests of the beneficiaries of the trust. This is the same kind of fiduciary duty that applies to other financial situations. Most notably, SEC-registered financial advisors have a fiduciary duty to act in the best interests of their clients.
The trustee is the one who holds the rights and control of the business stake in the trust. It’s typically one individual serving as a trustee of a business trust. At the end of the trust’s length, the business interests transfer to its beneficiaries. Business trusts are treated as corporations and may conduct business transactions just like individuals.
