Entrepreneurs and business owners are responsible for so many different details. Some of these include protecting assets, leaving a legacy, minimizing taxes, managing operations and hiring the right people. Many of these questions can be answered by thinking about creating a trust.
A trust forms a fiduciary relationship in which one party, the creator, gives another party, the trustee, the eligibility to hold title to assets or property for the benefit of a third party known as beneficiaries. These provide a great deal of legal asset protection when those assets are properly placed inside the trust. This can help to dissuade potential creditors from getting direct access to assets within the trust and even protect the assets within the trust from beneficiaries.
Working with a knowledgeable lawyer is the only way to get all of the benefits from creating a trust. Some of the biggest advantages of creating a trust as a business owner include asset privacy and preservation, minimization of estate taxes, succession planning to ensure a smooth transition for your company in the future, maintaining appropriate control and access to assets and avoiding possible state income taxes. There are many complex issues involved in determining the future of your company, but scheduling a consultation with a trusted attorney is the best way to protect your interests.
Our business succession planning attorneys in Pasadena are here to support and guide you.