Business owners in Nevada who want to make sure their life’s work continues after they are gone need to think about how to address this objective in estate planning. A trust can work well under these circumstances, but it is imperative to know how to ensure the business is handled properly.
A fiduciary can be essential. The role is for an individual or an organization to act on others’ behalf. They will serve the interests of the trust in an aboveboard manner. When the trust owner wants a business to continue after they are gone, there are specific rights granted to the fiduciary. Knowing how this works will impact the business, family members and others involved in it, so the relevant people must understand the law for continuing the business as part of creating the trust.
What can a fiduciary do to continue a business?
As part of the trust, powers can be granted to a fiduciary to continue or take part in a business’s operation. There can be terms and conditions within the trust as to how this will be done and its duration. The fiduciary will have the right to be involved in the business to the extent necessary.
They will have various powers including its incorporation, dissolving the business or making other changes to its organization. The fiduciary can dispose of interests that are part of the business or acquire others’ interest. They can contribute or invest capital in it or lend money.
Regarding the business liabilities that are incurred as part of its operation, the fiduciary can decide if it is to be charged to the estate or trust that was set aside for the business or to the entire estate or trust. The fiduciary does not need to itemize any receipts, distributions or disbursements. They can consolidate the figures or show a total.
Know how a trust can help with maintaining a business
If a person owns a business or enterprise and they are concerned about how it will continue operating after they are gone, a trust can address that by having a fiduciary in place. Many businesses are not so-called “family” businesses where loved ones left behind have the experience, knowledge and ability to run it effectively.
It may be necessary to have people in place who will objectively oversee its operation. An estate plan can address this concern and help with keeping a business running. When creating a trust or other type of estate planning document, having comprehensive help with all of the options available is a critical decision and should be done as soon as possible.