A business trust is a legal entity that acts as a trustee on behalf of a business. These trusts separate the owner’s personal assets from potential business liabilities, while allowing the business to operate on a daily basis. Business trusts combine elements of traditional trusts and corporations, consisting of trustees who manage the business, beneficiaries who hold transferable ownership shares, and trust property or assets. Beneficiaries, similar to shareholders, receive distributions of the trust’s profits.

Types of business trusts include:

• Simple trusts: Distribute all earnings from trust assets to the beneficiaries annually.
• Complex trusts: Can retain some or all of their income, and the trustee has greater discretion in managing the trust’s assets and distributions.
• Grantor trusts: Allow the creator to retain certain powers over the trust, and the creator is considered the owner. This type of trust may offer some protection from creditors.

Business trusts provide numerous benefits, including asset protection, tax advantages, and enhanced privacy through reduced disclosure requirements for financial data, ownership information, and other company details. Furthermore, a business trust can help owners avoid estate taxes and ensure the smooth transition of a company to their heirs after passing.

Trust Management Designed to Empower and Protect Business Owners and Their Business Assets

Altruist’s^™ caring and experienced trust managers take pride in guiding clients through every stage of their business trust – from development through the trust’s lifetime.