Transferring Partnerships, LLCs, or Corporations to Your Trust

Transferring partnership or LLC interests into a trust involves a few steps, each of which ensures the legal transfer of ownership in accordance with any pre-existing agreements and the update of the entity's records to reflect the change.

How do you transfer interests in partnerships and LLCs?

  1. Prepare an 'Assignment of Interest' document: This signed document formally states your intention to transfer your interest in the partnership or LLC to the Trust. 
  2. Notify other partners or LLC members: Give a copy of the Assignment of Interest to other partners or LLC members to keep them informed and maintain transparency.
  3. Review the partnership or LLC agreement: Before making any transfers, check the partnership agreement or LLC operating agreement for any restrictions or special requirements concerning transfers.
  4. Update entity records: Ensure that the partnership or LLC updates its official records to list the Trust as the new owner of the interest. See our guide on how to title assets transferred to a Trust: How to Title Assets in the Name of Your Trust

How do you transfer corporate stock to a trust?

Transferring corporate stock to a trust generally follows a straightforward process but requires adherence to any existing corporate policies or restrictions.

  1. Examine corporate records for restrictions: Start by checking the corporation's records to identify any restrictions or specific requirements on stock transfers.
  2. Contact the corporation's Secretary: The Secretary of the corporation can update ownership records and issue new stock certificates. You may need to complete an Assignment of Stock form or other necessary paperwork.
  3. Update records with Trust as owner: Request the Secretary to update the corporation's ownership records reflecting the Trust as the new owner.

 

Learn more with this short video about transferring business interests to a Trust:

More Resources

View, download, or print our comprehensive guide to funding your Trust: Trust Funding Guide

Learn more about transferring various asset types to your Trust: Funding Your Trust: How to Transfer Assets to a Trust

 

This information is intended as a reference only. It is not legal advice nor intended to cover every possible situation. Please consult an attorney if you have specific questions. Some details for funding your Trust may change over time. For example, if the Trustee changes, that would likely affect how you would title assets held in the Trust.

Was this article helpful?
9 out of 10 found this helpful