If you are a business owner, it is likely that your business is one of your most valuable assets. You may be sentimental toward your business - you will want it to be your legacy after your lifetime and to continue to thrive. Therefore, when planning your estate, it's likely that your business will be one of your top priorities.
Some business owners choose to put their business into a trust. They help to ensure that the assets of a business will not be affected by probate at the end of your lifetime. There are many types of trusts, and each one has different uses. If you are considering putting your business into a trust, take the time to understand the key advantages for doing so and the additional considerations that you should make.
The advantages of putting your business into a trust
The most obvious benefit of the use of trusts is probate avoidance. Probate can be costly and lengthy, meaning that if you do not put your company in a trust and you leave it to a loved one in your will, it may be many months until they are able to gain access to the assets.
Additionally, putting your business into a trust may help you to protect your business assets during your lifetime. Having assets in a trust can help to protect your assets from creditors.
The considerations that you should make
There are some risks for complications when setting up a business for your trust. For example, you may need to pay a third party to manage your trust. This could increase costs and complications. That's why setting up a trust is likely only a good idea for a business that has considerable assets.
If you are starting to plan your estate as a business owner, it is a good idea to start thinking about the potential advantages of creating a trust and to consider whether this is right for your situation.