Do You Trust Your LLC?

In these economic times, many people are forging into their own businesses and forming LLC's. However, many people are forgetting to integrate their estate planning, specifically their revocable living trust, into their LLC.

The Arizona Corporation Commission requires a minimum to create an LLC; submit the requisite Articles of Organization, pay the filing fee and publish the Articles after being approved. This minimum does not protect you from having to seek court intervention if a Member of the LLC becomes incapacitated and does not avoid the need for probate if a Member dies.

If you have gone to the effort to have an estate plan, then be sure that your Member's interest is titled in your trust. By having your Member's interest held in trust, if you become ill, incapacitated or die, your Successor Trustee can act on your behalf and you can avoid court involvement in such a situation.

Probate does not keep your privacy

When a probate is filed, all of your legal heirs must be notified. Legal heirs are those who would receive your assets if you did not have a Will. Thus, even if you want your assets to go to friend or certain relatives, if probate is necessary, all legal heirs will receive notice of it. To keep matters private, you can avoid probate several ways: pay on death designations, beneficiary designations or a revocable living trust. Even if you have a trust, to avoid probate, you need to be sure all of your assets are titled in your trust -- that is, the asset should be titled in your name as trustee of your trust.

Easing the Burden on Your Family

When we are ill, the last thing we need is for our family to be blocked from helping us -- with our medical care or with our financial needs. Powers of attorney are necessary so the RIGHT people can assist us when we are sick. Having a Trust makes sure that our families do not have to go through the court system just to get access to our assets. Trusts put your goals simply; include guidelines and motivation for going to college, buying a house or making sure investment are not risky. A trust can make sure that the right person is overseeing your money for your children and that the right people are the beneficiaries of your hard-earned assets.