Advising Trustees Who Manage Closely-Held Business Interests
Settlors often place some or all of the ownership in a closely-held business in a trust. A trustee managing a trust with an interest in a closely-held business has difficult management issues to address and this often raises disputes. This presentation will address how counsel can advise trustees who are administering trusts with closely-held business interests. The presentation will include a discussion about:
- Proper considerations that a trustee should undertake in managing a closely-held business interest (management decisions, distributions, capital expenditures, diversification of business lines, diversification of trust, and sale or divestiture of some or all of the business) Managing an ownership in a closely-held business versus being a controlling person in the entity,
- The differing fiduciary duties that arise from being a trustee versus being a controlling person of a closely-held business,
- The risks associated with holding both roles,
- Best practices for addressing conflicts of interest,
- Best practices for avoiding breaches of fiduciary duties,
- Attorney-client communication and privilege issues,
- Disclosure obligations to beneficiaries regarding closely-held business interests,
- Directed trust issues for managing closely-held businesses,
- Co-trustee issues for managing closely-held businesses.
CLE: 1.0 general credit
States Pre-Approved: AR, CA, NJ, NV, NY, OK, PA, VT
(AK, AZ, CT, MO, ND, NH, TX eligible to claim credit)
States Pending Approval: CO, GA, IL, NC, OH, TN, UT
We will supply you with the information needed to apply in other states.
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WealthCounsel members: This CLE eligible program is complimentary for WealthCounsel members. Please access and view it here via the member website for optimal experience and inclusion in your CLE Profile Account.