Question: What are the reasons why I should have my revocable living trust own my membership interests in a limited liability company?
Answer: The following is a list of the benefits of having a revocable living trust own all of your LLC membership interests:
- Incapacity: The co-trustee or successor trustee can administer assets held in trust if the owner / current beneficiary becomes incapacitated.
- Avoid Probate: Assets held in trust avoid probate when a current beneficiary dies.
- Asset Management: You can name a trusted person or a trust company to be the trustee to manage and invest the assets held in trust after your death if your beneficiaries are too young, cannot be trusted with the money, have creditor problems or a money-grabbing spouse.
- Payment of Funds After Death: The trust contains your estate distribution plan, i.e., who will inherit your assets after your death. It states how much and when beneficiares will be paid distributions from the trust.
- Asset Protection: If the trust is drafted properly, it will be an excellent asset protected device for your beneficiaries. A properly worded trust will prevent your beneficiaries’ creditors, ex-spouses and bankruptcy court from getting any of their inheritance.
Hire Arizona Wills & Trusts Attorney Richard Keyt to Prepare Your Trust
To learn more about my wills, trusts and estate planning services, go to my website called “Arizona Wills & Trusts.”