Business succession
Transfer restrictions and permitted holders
If a trust is not on the list, the transfer into it may never have happened.
Most operating agreements restrict transfer to a defined list of permitted holders. Where a revocable trust is not named, a transfer into one can be void, and the defect is usually discovered by the person administering the estate.
The fix is a consent or an amendment, negotiated with the other owners. It is straightforward while relations are good and difficult afterwards.
What this involves
- Reading the transfer clause against the trust
- Consents and ratifying amendments
- Naming trusts as permitted holders
- Re-papering a transfer made years ago
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Who does this work
