A Will is essentially a set of wishes that goes to the probate court. Many people prefer to avoid a standard probate process and use trusts as a probate avoidance tool. The reason why many people want to avoid probate is because it can be costly and time consuming. In many cases, the revocable living trust in Connecticut is used for this purpose.
Certain assets may compound the normal time and expense associated with probate. The family business is one such asset.
It can be very difficult for an executor to know how to manage a business or for that matter to be able to manage a business within the probate process. This can lend itself to needing additional legal assistance and court intervention which can increase costs.
A properly drafted and funded Living Trust solves the issue of court involvement by allowing the business to pass directly to the beneficiaries without court oversight. This Revocable Living Trust of course has to be drafted and funded during the lifetime on the settlor (grantor) in order to accomplish this goal.
Note: there may be a buy-sell agreement or provisions in the business's operating documentation (e.g. bylaws, operating agreement, partnership agreement) that govern or affect transfers of the business interests. This should be discussed with the Connecticut trusts attorney beforehand.
If you have any questions about whether or not a revocable living trust is appropriate for your specific circumstances, feel free to call us and set up a consultation. You can reach us at (203) 651-5521.