Should You Put Business Interests in Your Living Trust? - Davies Law Firm
Episode notes
From Davies Law Firm - Should You Put Business Interests in Your Living Trust? explores how a revocable living trust can help business owners in Syracuse and across Central New York avoid probate, maintain privacy, and ensure continuity in ownership. The episode walks through how aligning estate planning with business structure—whether through an LLC or corporation—can create a seamless transition strategy that protects both personal and professional interests.
Drawing on decades of experience, Davies Law Firm highlights insights from attorneys Frederick P. Davies and William P. Davies, who guide listeners through the legal and operational considerations involved in transferring business interests into a trust. The discussion breaks down how sole proprietorships, LLC membership interests, corporate stock, and partnership interests interact with a revocable living trust, while emphasizing the importance of reviewing operating agreements, shareholder agreements, and buy-sell provisions before making any transfers.
Listeners will gain a clear understanding of why combining an LLC or corporation with a living trust often provides the strongest structure. The episode explains how liability protection from an LLC differs from the ownership and succession benefits of a trust, and why both layers are essential. It also covers critical tax considerations, including how the Internal Revenue Service treats grantor trusts, what happens under the Internal Revenue Code, and how structures like QSSTs and ESBTs help maintain S-corporation status after death.
Finally, the podcast outlines the risks of improper planning, such as violating transfer restrictions or losing S-corp eligibility, and offers practical next steps for business owners. From gathering governing documents to updating trust arrangements over time, Davies Law Firm provides a roadmap for safeguarding business continuity and family wealth. This episode is a comprehensive guide for anyone navigating estate planning and business succession in New York.
Davies Law Firm
210 E Fayette St, Syracuse, NY 13202
(315) 472-6511