Apart from writing a will, you may also decide to put your business assets into a trust. This is a legal platform that facilitates the distribution of any assets you possess to your beneficiaries without probate. The business owner or grantor dictates the conditions of the trust. Such terms include naming the beneficiaries, and listing the kind of assets to be moved to the trust.
There are several forms of trusts. This article focuses on one type – the irrevocable trust.
Irrevocable trusts can never be edited, altered, or terminated unless certain conditions are met. They represent the opposite of revocable trusts, which may be altered or terminated at any time. Most business owners do not understand the benefits of setting up this kind of trust. Yet, having one is a guarantee that your business assets are fully protected.
Once you fund the trust with your assets, you no longer have any right over them anymore. Any asset added to the irrevocable trust is restricted from being sold off or given to mortgage until it gets transferred to the heirs.
Deciding to set up such a trust for your business can help keep your assets off probate. However, if you start experiencing financial difficulties related to the business, you will not be allowed to sell any of them even if they belong to the business. Nevertheless, an irrevocable trust comes with various tax benefits that you can take advantage of. However, you need to set it up the right way with the assistance of a “probate attorney near me 11516”.