Funding your Trust: Business Interests

After your Trust is signed, you must take steps to fund it with your Trust Property.  If you do not fund the Trust with your Trust Property, the Trust may not be effective, and your estate may have to go through probate upon your death.

Interests in partnerships and LLCs, and shares in a corporation, can be retitled in the name of the Trust, usually by signing an Assignment of Interest stating the interest is being transferred to the Trust. Most partnership agreements, LLC operating agreements, or articles of incorporation include restrictions on transfer of interest without consent of the other shareholders or members. You need to check the partnership agreement, LLC operating agreement, or articles of incorporation for transfer restrictions and any transfer procedures.

Your Islamic Trust-based Estate Plan includes a Trust Funding Guide, which will include a sample assignment that you can use to fund your business interests into your Islamic Trust.