If you’re a business owner and you’re in the process of creating a will and trust, it’s critical that you include your company. There are multiple reasons it’s essential to ensure a smooth transition for your business should you become incapacitated.
Why it’s So Important
If you die without a trust in place, one that includes your business, your assets will go through probate, as will your business. When your personal finances are stuck in probate, it can create a hardship for your family. The same is true of your business. If held up by probate, it can cause substantial hardships for your employees. If there is no trustee named, there isn’t anyone with authority to write checks or make financial decisions, at least not until the court appoints one. The wait can lead to the failure and shutdown of your company, sometimes temporarily but often permanently.
What to Include in the Trust
You don’t have to die for a trust to take care of the business you’ve spent your life building. If you get sick, injured, or somehow incapacitated, a trust is just as valuable, if not more so. When you’re creating a trust to protect your assets and your family, including your business, will also protect them. The trust will designate an individual to serve as your trustee separate from your personal finances when your business is in the trust 100%. This trustee, often someone other than a family member, will take over daily decision making and, in some cases, voting rights. This is just the beginning of how a trust can protect you and your company.
To find out more and to create a trust that protects not only your family but also your business, contact the experienced legal team at McCutchen McLean, LLC today.