How To Have A Sole Proprietorship Placed In A Trust

How To Have A Sole Proprietorship Placed In A Trust

Follow the instructions in the program for adding the an entity's assets into a trust (Private Security Agreement with property recorded in Schedule A). One can only transfer the assets of the sole proprietorship into the trust. Because a sole proprietorship only consists of one person and does not have its own separate identity, one cannot simply sell or transfer the business itself as one could when dissolving a limited liability company (LLC). However, because one personally own its assets, it can be sold to another person or entity (e.g. .

NOTE: If one pays expenses from a personal account after the private transfer, this establishes a Points of Contact, which allow lawyers to establish jurisdiction over the trust due to mixing the PERSONAL and the TRUST issues/assets together.

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