When holding business interests in a trust, it’s important to understand the different structural models for fiduciary decision making.

  • When a business interest is the primary asset in a trust, it can create challenges for both the Trustee and business owner.
  • The Trustee’s general fiduciary duty to diversify the trust’s investments may not align with the business owner’s goals.
  • Certain trust features can help to alleviate this conflict.

One of the biggest hurdles for business owners considering estate planning using personal trusts is the fear of giving up control over their most significant asset. After many years of successfully leading their company, they are understandably reluctant to let anyone else make decisions about how it is managed as an asset. 

Please see important disclosures at the end of the article.

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