Trusts Provide Easier Administration
Trusts are legal entities in which the trust maker, or grantor, places assets to be used by themselves or their beneficiaries. While wills and power of attorney documents are important starting points for asset planning, trusts provide another level of security and flexibility. Unlike wills, trusts avoid the probate process, giving your beneficiaries quicker and easier access to the assets you intended for them. Trusts let you keep your business assets in your name, while allowing trustees to access and manage the assets, if needed. For example, your brother may have powers of attorney and be able to run your business if you become incapacitated – however, without a trust holding the business’ assets, he may not have legal access to the assets for purposes such as paying himself a salary.
Even if you just have to step away from the business for a period of time to tend to other matters, a trust will allow your trustees to step in and run the business on your behalf without a complicated change in ownership process. When you pass away, the trust distributes the assets to your beneficiaries, creating an easy transition to the next generation.