If you are a business owner there are several reasons why you may want to have a living trust instead of a will. One of the reasons why a living trust is better than a will is that if you need to pass your business to someone due to becoming disabled, a living trust can do this where a will can’t.
In the event that you became incapacitated, the person you designate in your will cannot take over control of your business until you actually die. This could cause a great deal of problem for your business, as well as your beneficiaries. In a situation like this your business may actually fold because of the lack of adequate structure and leadership.
If you use a living trust you can designate a successor trustee in the event that the main trustee becomes disabled. With a living trust the successor trustee can then step in and take over the running of the business while the main trustee is disabled and unable to run the business.
In the event that you do die, your will can then cover the transition of your business, but your estate will still be facing some problems. The person that you leave your business to will not actually have legal authority over that business until the probate process is over, and this could take months, especially if someone decides to contest your will. During this time there are a number of things that can harm your business.
The best way to avoid any of these problems is with a living trust. Business owners should seriously consider retaining the services of an experience estate-planning attorney to help them decide what they need to do with their estate plan to protect their business, and family. A living trust can also protect your other assets from probate, which will greatly benefit your loved ones after you are gone.
The last thing your family needs to deal with is legal problems with your estate during an already difficult time in their lives.
Byrd : Garrett, PLLC is a member of the American Academy of Estate Planning Attorneys.