Washington, DC asked in Estate Planning, Business Formation and Business Law for Maryland

Q: How do I write up a Bussiness trust 12-2004

I wanna write up a Unicorporated Bussiness trust

1 Lawyer Answer

A: The first question any business attorney will likely ask is: what are you looking to accomplish? A business trust is an old but relatively unusual way to conduct business, except perhaps in the case of real estate held in a grantor's revocable living trust. The question doesn't give any facts as to why an "unincorporated business trust" is desired. Most attorneys would ask whether the Grantor determined the tax liability for conducting a business in a trust vs. through a standard or bypass entity. It would be essential to consult with a tax professional -- income earned by certain trusts may be subject to a higher tax rate (e.g., based on 2018 tables a married individual earning $150,000 might have a federal income tax rate of 24% while a trust earning the same amount might have an income tax rate of 37%)

At its most basic, every Trust will need a Trust instrument, identified Trustee(s) and beneficiary(ies). A skilled estates/trusts and/or business attorney can assist in drawing up a trust instrument in a way that accomplishes your goals or perhaps discuss other business entities. Your post notes a DC location and MD business -- there are many business lawyers in the DC metro area barred in this state who could sit down with you and discuss your business plans and options to accomplish your goals.

While not legal advice, I hope that this general information helps.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.