Can a Trust own an LLC?
Can a trust own an LLC? Placing your LLC in a Trust is often a smart decision. When you place your LLC in a Trust, you can combine both entities’ protections. A trust can help you avoid probate and protect your assets from lawsuits. Assets in a trusted account are protected from probate fees. This means no costly court processes and no delays in transfer of ownership.
2: More PrivacyBecause wills go through probate, they become
public records
. Your family’s privacy will be protected if you place your LLC in a Trust. You can name the trust in your will as your beneficiary. The trustee will distribute assets in accordance with your instructions after you die. You can hire a third party to manage your assets on your behalf. If you were to be incapacitated or leave the country, your assets would remain safe. 4: Asset ProtectionBecause a trust is its own legal entity, it further separates the assets from your personal property. Placing your LLC in an
irrevocable trust
can protect you (and your business) against lawsuits and creditors.
EXAMPLE: Scott and Lisa own several rental properties
in the Phoenix area. To protect themselves and their other properties from lawsuits by tenants, they set up an LLC for each of their properties. They then create an irrevocable Trust and transfer ownership of their LLCs to it. By separating their properties, they can protect the bulk of their assets against lawsuits and preserve more wealth for their children’s inheritance.
Estate Planning for Business Owners in ArizonaAs business owners
ourselves, we understand the importance of planning ahead and protecting your assets for future generations. Since over 40 years, our family has helped other Arizona families create sound estate plans. If you want to learn more about how to protect your business with estate planning, contact us today to schedule a
free consultation.
Photo by
Nader Abushhab on Unsplash
used with permission under the Creative Commons license for commercial use 8/14/2024.
