If you have a corporation and you are wondering what will happen when you die or become incapacitated, you should think about a trust. A revocable living trust is gaining alot of popularity but few think about how it could help when you own a small corporation. Maybe you are the sole shareholder of a corporation or an LLC. Maybe you are the majority shareholder of the corporation. In these instances a trust could control what would happen when you become incapacitated or upon your death to the corporation. This is how it works: upon your disability or your death, your trust could direct that all of your shares/your business would be controlled by a person that would be known as the trustee. This trustee would run the business. You could indicate what the trustee would be paid. Your trust could provide that the beneficiaries of this part of your trust would receive all of the income it produces, while being run by a person you know would know how to run the business. You could even indicate that this person’s salary would double while running the business. You could also indicate that the corporation/business could not be sold by the trustee without the unanimous consent of the beneficiary. If you have people in your family that really do not want to run your business at your death but you do want them to receive the benefit of your legacy, then a trust may be exactly what they need. The trust literally can have as many directions to your survivors as you wish. If you want to plan for your business succession, please call us at (800) 431-9776 to schedule your free, no obligation consultation.
- How Estate Planning for a Family May Trap the Unwary Practitioner - September 21, 2022
- What Everyone Should Know about the New FDIC Regulations - September 13, 2022
- The Inflation Reduction Act - September 8, 2022