Your estate planning attorney recently helped you draft a Revocable Living Trust. Along with covering all your bases from a personal standpoint, you also agreed to place your business under the Trust. After all, moving your business under a Trust can be a smart move, regardless of whether you wish to protect assets, plan for the future, or add a layer of privacy. 

However, you could not help but feel a little apprehensive once the ink dried. On the one hand, a massive weight has been lifted from your shoulders by simply having a Trust in place. On the other hand, you wonder, “Did I just lose control of my business?”

Do I Still Own My Business Now That It Is Under My Trust?

When you move your business under a Trust, company ownership technically changes from a legal standpoint. In other words, the Trust (not you) is now the official owner of your business assets. However, that does not mean you have lost control over the company you created. As the creator of the trust (grantor) and, potentially, as the trustee and beneficiary, you can still maintain considerable day-to-day control over how the business operates and who makes every decision moving forward while you are living.

The decision does not impact operation decisions, business financial management, or investments. Furthermore, having your business under a Trust does not affect existing bank accounts, Secretary of State filings, and yearly tax filings.

Everything with the Trust is happening in the background, out of the public eye. Meanwhile, it is as if you still “own” the business. 

How is this possible? For starters, the living grantor in this scenario (you) sets the rules for how the Trust operates. The same is true if you serve as the trustee—you maintain direct control over the day-to-day decisions of everything held within the trust. 

Think of yourself as a puppeteer, pulling the strings from every possible angle—including with your business.

As you can see, putting your business in a Trust does not necessarily mean giving up control. Sure, you are technically one step removed from direct ownership, but the advantages and the fact that nothing changes from a management standpoint cannot be beaten.

Please consult one of our estate planning attorneys to see if this structure suits you.

Call Leigh Hilton PLLC Today!!

It can be overwhelming when you know it is time to discuss estate planning, especially when a business is involved. Sitting down with a knowledgeable estate planning attorney is your best bet in these situations. Call Leigh Hilton PLLC in Denton, and we will work with you to determine the best strategy for your unique situation. Proper planning of an estate helps ensure your wishes are honored.

Leigh Hilton PLLC wants to be your first call every time for any estate planning need. We look forward to serving you.

Thanks for reading!