Do you own a business in Minnesota? If so, you may have considered setting up a trust. A trust can be a great way to protect your business assets and ensure that your heirs receive them when you die.
What is a business trust?
A business trust is a legal entity that can own and manage property, like a corporation. As a business owner, you can set up a trust to own and manage your business assets. By delegating ownership of your business to a trust, you can protect your assets and ensure a smooth transition of ownership to your beneficiaries.
Why should you set up a business trust?
There are a few different situations when setting up a business trust can be beneficial, and one of them is when you want to protect your business assets from lawsuits and creditors. Per business & commercial law, creditors can’t go after the assets of a trust, so this can be a great way to protect your business.
Another situation where a trust can be helpful is when you want to transfer your business to your heirs. If you set up a trust before you die, the trust will own and manage the business when you die. This can make it easier for your heirs to take over the business, and it can help them avoid business lawsuits and probate.
If you’re considering setting up a trust for your business, there are a few things you should keep in mind. First, you’ll need to choose a trustee. This person will manage the trust and its assets. You’ll also need to decide how the trust will be funded. You can fund it with cash, property or other assets. Finally, you’ll need to create a trust agreement. This document will outline the terms of the trust and how it will get managed.