You may open a bank account in your trust’s name and fund it with cash. But you may be an individual who possesses more complex assets than simply liquid assets, especially if you are a business owner. Understandably, you may want your designated beneficiaries to inherit these other assets too, while getting the same protection under your trust. Without further ado, please continue reading to learn how to fund your trust with business interests and how an experienced Putnam County trusts attorney at the Law Office of Andres D. Gil, PLLC can advise you on whether or not this is a strategic idea.
Is it possible to fund my trust with business interests?
When you sit down with one of our attorneys, the first thing we may ask is what type of business interests you have and wish to pass down. Based on your answer, we may direct you to fund your trust differently.
For example, say that you are the sole proprietor of a business operation. Here, since there is no legal separation between you and your business, there may not be anything to transfer to your trust. However, you may still transfer your business assets to the trust, such as equipment, electronic devices, furniture, financial accounts, real estate properties, etc.
Or, say that you are one part of a partnership or a limited liability company (LLC). Well then, you may have to sign an Assignment of Interest document stating that you are transferring your interest to your trust. You should provide your partners or LLC members with copies of this document and ensure they update their business records. But more importantly, you should check that your business’s operating agreement imposes certain prerequisites or limitations for such transfers.
Lastly, say that you own stock in a certain corporation. Again, after reviewing the corporation’s operating agreement for prerequisites or limitations, you may fill out and file an Assignment of Stock document that names your trust as the new owner of your business interests. Afterward, you may request an updated stock certificate that reflects this.
What other types of assets can I use to fund my trust?
Besides liquid assets and business interests, below are other asset types you may use to fund and get protection from your trust:
- Your personal property (by signing a general transfer document).
- Your real estate property (by signing a deed to transfer the title).
- Your life insurance policy (by naming your trust as the primary beneficiary).
- Your retirement accounts (by naming your trust as the primary beneficiary).
All of this to say, the time to act is now. Please pick up the phone or message us at the Law Office of Andres D. Gil, PLLC. Surely, a skilled estate planning attorney in Putnam County on our team will be the perfect fit for your upcoming estate planning.
