Benefits of a Confidential Trust

Benefits of a Confidential Trust2016-11-16T08:23:16+00:00

by Arizona LLC attorney Richard Keyt

If you are considering forming an Arizona limited liability company here are the two primary reasons you should hire Richard Keyt to prepare a Confidential Trust to be the owner of the LLC:

1. Confidentiality.  Arizona LLC law (Arizona Revised Statutes Section 29-632) requires that the Articles of Organization of an Arizona LLC contain the name and address of members and the LLC’s place of business in Arizona. The Confidential Trust allows the ultimate owner of the LLC to keep the ultimate owner’s name off the public records of the Arizona Corporation Commission. For example, if your Confidential Trust is called the “Hermosa Beach Trust” the ACC’s public record of the LLC will show it is owned by the Hermosa Beach Trust.  The ACC’s records will not contain the name of the trustee or beneficiary or the address of the trust. A Confidential Trust can own multiple Arizona entities and keep the name of the ultimate owner off the ACC’s public records. If you purchase a Confidential Trust the price includes one year of our address service, which means that the address of the LLC and its members shown on the ACC’s public records will be c/o KEYTLaw, LLC, 7373 E. Doubletree Ranch Road, Suite B-165, Scottsdale, AZ 85258.

2. Save Money if You Adopt a Revocable Living Trust for Estate Planning in the Future.  By purchasing a Confidential Trust before you form an Arizona LLC you can save money two ways if you sign a trust later:

  • It avoids the cost to document the change of ownership of the LLC from you to the LLC.  To document the change of ownership of an Arizona LLC from a person to a trust you should do the following: (i) sign an Assignment of Membership Interest Agreement by which the person transfers ownership of the LLC to the trust, (ii) file an amendment to the Articles of Organization with the Arizona Corporation Commission by which the LLC’s records deletes the person as the member and adds the trust as a member, and (iii) amend to Operating Agreement to remove the person as a member and add the trust as a member.  We charge $545 to prepare these documents, which amount includes the $60 filing fee paid to the ACC.
  • If you purchase a Confidential Trust and hire Arizona wills and trusts attorney Richard Keyt to prepare your estate plan with a revocable living trust you will get a credit of $297 off the cost of an estate plan.  To learn why you need a Will and a Trust for your family read my free ebook called “Family Asset Protection.”  See the contents and cost for an estate plan.