Q: I want to change my trust document to give my corporation to a person upon my death.

A: Closely-held corporations in Colorado own assets in the name of the company even if the company is owned and operated by one person or a family. To use your example, the assets of XYZ Consultants would remain in the business if the owner of a single-member LLC died. Only if the business is unincorporated or is a sole proprietorship will the business assets be automatically regarded as personal assets of the person passing away. In order of move company wealth out of the company and into your personal estate, you'd need language in the company's Operating Agreement stating the company should be closed and it's assets liquidated on your death, followed by a distribution to your personal estate.

If you want to give control over the corporation to another person, you can form a succession plan. You can think of a succession plan as "estate planning for your business." The business Operating Agreement can specify that, on your death, your membership (in an LLC) or your shares (in a corporation) or your partnership interest (in a partnership) must transfer to another specific person. Essentially, that person will take your role in the company and become entitled to your previous control over the business, including the right to profit from operating it. This transfer would be independent of your trust, which transfers personally-held property.

Check with your business attorney for an update to your Partnership Agreement, Operating Agreement, or Bylaws to create a succession plan. Giving your business to someone upon your death is a common and straightforward request. The Operating Agreement (or Bylaws) is the best way, not the trust.