small business trusts lawyer
What are the Benefits of a Trust For a Small Business Owner?

A lot of our small business owner clients ask what the necessity of a trust is if they already have the benefits of a corporation or a limited liability company (LLC). While these business structures do provide some personal protection, they may not protect your business assets. That is why a small business trusts lawyer can provide a couple of benefits for these clients.

What are the Benefits of a Trust for Your Business?

#1: Avoid Probate Court

The main benefit of placing the small business in a trust is to prevent the business from going through probate in the event of the owner’s passing. By placing the business in the trust, it is no longer part of the owner’s estate. Running a business through the probate court process can be very expensive and time-consuming, as most decisions would require court approval. The length of time in getting a hearing could potentially affect key decisions and have harmful effects.  The attorney’s fees and court costs could quickly drain the business resources. By having a small business trusts lawyer place the small business in the trust, it will no longer be part of the owner’s estate and will avoid these potential complications.

#2: Continue Business Operations After You Pass

Another benefit is the assurance that the business will continue to operate.  The trustee chosen by the owner to operate the trust upon his or her passing. This appointed individual can be granted business decision making and voting rights within the trust document. A trust can continue in operation for a long period of time after the passing of the owner. Because the trustee is granted these rights, he or she can operate the business for just as long.  This allows for the continuity of the business for the benefit of the owner’s family as well as their employees.

#3: Gain Better Control Over Your Business Assets

What are the benefits of a trust holding all of your small business assets? More control. You will be able to control how and when to transfer your assets. If you choose to pass your business on after your death, your heirs may be able to receive that money without paying a federal estate tax, depending on your situation. To comb through the finer details, contact a lawyer today.

Maintain Your Business Legacy For Years to Come

Business owners should use a small business trusts lawyer to set up revocable trust structures because they are best.  This way they can have control over the shares since they are the sole holder. While they remain alive, they can also sell or gift shares if that becomes an option available to them.

They should engage a small business trusts lawyer for business succession planning to involve second generations. Also, to simplify continuity of the small business for their families and employees. Finally, a properly prepared trust should be a part that planning.