Starting a new business and your estate plan
When you own a business there are many issues that you need to consider, and you certainly should should seek legal advice from a lawyer. One issue that most people do not think about is the issue of passing the ownership of the business on to heirs (spouse children, or others). There are several ways to ensure that you ownership interest in a business passes on to who you choose.
Trust Centered Estate Plan Plus Corporation
One such way is to have a trust centered estate plan along with a corporation. The trust is written as a family or individual Trust, and the corporate stock is issued directly to the trust. In the event of your death, the Successor-Trustee of your Trust manages the corporation stock as your Trust agreement dictates. For example, you decide that you want your spouse to continue running the business if he/she survives you, if not you want your children to be able to continue the business. The Trustee of your Trust, which is initially you and your spouse owns the shares of the corporation and thus you are in charge of the corporation through your Trust. In the event of your death the surviving or Successor-Trustee takes over the Trust and thus the corporation. No probate, no hassle. You can also opt to instruct your Successor Trustee to sell your corporation stock.
The ownership of the business through a corporation held by a Trust can help protect your business investment from exposure to your personal liability outside of business, like a bad car accident, etc. There are other business structures that can be formed to work within a Trust centered estate plan. Learn more about various business structures in Tennessee.
Contact the attorneys of Purple Law Firm to discuss your business and estate plan needs.