Some people who own interests in a small business want to arrange their legal affairs so that there is no interruption in the business when the business owner dies.
When an LLC owner or an owner of a privately held corporation dies, the ownership interest must be handled through the court-supervised Succession or probate procedure before business can continue. To avoid business disruption, or just to make it simpler for the business to be transferred after the death of a business owner, the business owner, during his or her lifetime, will transfer or assign their ownership interest to their living trust. When the business owner dies, the Successor Trustee can continue managing the business, or the Successor Trustee can immediately transfer the business interests to the appropriate trust beneficiaries.
Note that if you own an LLC, then your ownership interest is called a "membership interest." If you own stock in a privately held corporation, you will be a stockholder of either a C or S Corporation.
Give us a call at 866-491-3884 if you're interested in making it simple for your loved ones to continue managing and owning your business interests.