Can a business interest be placed in a living trust?

A business interest may be transferable to a trust. But the operating agreement, bylaws, shareholder agreement, license, lender terms, and other owner rights may limit or condition the transfer.

General information

• A trust schedule does not override a business agreement.
• Consent from partners or the company may be required.
• Tax classification and succession plans may be affected.

Service steps to consider

1. Reviewing the governing business documents.
2. Asking the company's lawyer or accountant about the transfer.
3. Keeping updated ownership records after approval.

Quick check

• Is the asset in the trust's name?
• Did the bank or county record the change?
• Did I save proof?

How Complete Wills can help

Complete Wills' trust-based package includes a revocable living trust, schedule of assets, certification of trust, pour-over will, power of attorney, health-care directive, and HIPAA authorization. The service can prepare documents from customer answers. But the customer remains responsible for signing and for properly funding the trust. Customer support can explain website features and questionnaire fields, but it cannot choose documents, people, distributions, or legal terms, interpret a completed document, or explain how the law applies to a person's facts. Only a separately engaged licensed attorney may provide legal advice within the attorney's engagement.

Important limits

• A trust controls only property legally connected to it. A schedule alone may not change title.
• Get legal, tax, or financial advice before transferring retirement accounts, business interests, mortgaged property, foreign property, or assets with transfer restrictions. This article gives general information only. A licensed attorney can explain how state law applies to a specific estate plan or document.