SERVICES
Moving Your LLC Interest Into a Revocable Trust
For New Jersey residents who own an LLC formed in New Jersey, Delaware, Wyoming or another state, and want their estate plan to actually cover the business.
The step many business owners skip
Many business owners sign a revocable trust and never move their company into it. Whether the trust does what was intended often depends on that step.
It is common for a New Jersey resident to own an LLC formed somewhere else, often Delaware or Wyoming. The law of the state where the LLC was formed, the operating agreement and any required consents can all affect whether and how a membership interest can be transferred, and what rights the trustee receives.
Whether a transfer helps avoid probate or achieves other goals depends on the trust's terms, how it is funded, the operating agreement and your circumstances. A transfer can also have tax, financing or regulatory consequences, for example under loan documents, licenses or ownership reporting requirements, so those are reviewed before anything is signed.
CAPABILITIES
What This Covers
Review of the operating agreement for transfer restrictions, consents and buy-sell terms
Review of the formation state's LLC law, including New Jersey, Delaware and Wyoming
Assignment of the membership interest to the trustee
Member or manager consents and amendments where required
Updates to company records, bank, lender and licensing documentation
Planning for who manages the company if the owner cannot
Coordination with your accountant on tax considerations
Out-of-state LLCs
A Delaware or Wyoming LLC is governed by that state's law even when the owner lives in New Jersey. The transfer documents need to work under both the formation state's rules and your estate plan.
Consents and restrictions
Operating agreements often limit transfers or require the other members to approve them. Some transfers carry only economic rights unless the trustee is admitted as a member.
Tax, financing and regulatory review
Loan covenants, regulatory licenses and tax elections can be affected by a change in ownership. These are checked before the transfer, not after.
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Where This Fits
Own an LLC and Have a Trust?
We can review whether the two actually work together. The first conversation is free.
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