Transferring Partnerships, LLCs, or Corporations to Your Trust
Transferring partnership or LLC interests into a Trust involves several steps to ensure the legal transfer of ownership in accordance with any existing agreements, as well as updating the entity's records to reflect the change.
How do you transfer interests in partnerships and LLCs?
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.
Notify Other Partners or LLC Members: Provide a copy of the Assignment of Interest to other partners or LLC members to keep them informed and maintain transparency.
Review the Partnership or LLC Agreement: Before proceeding with any transfers, check the partnership agreement or LLC operating agreement for any restrictions or special requirements regarding transfers.
Update Entity Records: Ensure that the partnership or LLC updates its official records to reflect the Trust as the new owner of the interest. For guidance on this process, see our guide: 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.
- Examine corporate records for restrictions: Start by checking the corporation's records to identify any restrictions or specific requirements on stock transfers.
- 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.
- Update records with Trust as owner: Request the Secretary to update the corporation's ownership records reflecting the Trust as the new owner.