If you own a business—whether it’s a single-member LLC, a closely held corporation, or even a larger operation—it’s essential that you understand how to properly include that business in your estate plan.
Here’s what to know about using your revocable trust to pass on business assets—and what extra steps you may need if your business is more complex.
🔁 Transferring Business Interests to Your Trust
✅ For LLCs:
Use a simple assignment document to transfer your ownership interest to your trust. This is quick, direct, and avoids probate for that asset.
✅ For Corporations:
If you have physical stock certificates, look on the back—you’ll find transfer instructions you’ll need to complete.
If you don’t have physical certificates, you can execute an assignment document to move your shares into the trust.
💡 Important: Before assigning anything, always review the entity’s operating agreement. Some agreements restrict transfers of ownership or shares.
🧾 Why Assign Your Business to Your Trust?
Just like with real estate or financial accounts, the goal is to avoid probate. If your business is not placed into your trust, your heirs may have to go to court just to access or transfer the business interest—which can create costly delays.
For smaller entities, like single-member LLCs or family-held rental companies, assigning the entity to the trust is typically sufficient.
📉 What If You Own a Larger Business?
If your company has:
Multiple employees
Ongoing revenue streams
People who rely on it for their livelihood
Then a trust isn’t enough. You need a Business Succession Agreement.
What Does It Do?
This document outlines:
Who will own the business upon your death
Who will run the day-to-day operations
How leadership and management transitions will be handled
With this in place, your business doesn’t just survive—you ensure a smooth transition that protects your employees, clients, and legacy.
🧭 Bottom Line
Your estate plan should include every part of your life—including your business. Whether you're a sole proprietor or a multi-entity owner, assigning your LLCs or corporate shares to your trust will protect your interests and avoid unnecessary probate.
For more complex operations, a Business Succession Agreement is essential.
🧠 Not Sure What You Need?
Let’s talk.
📅 Book a paid consultation (AL, FL or MS only)
Share this post