Q: What is a business trust? And how does one purchase a business that is owned by a trust and an individual? Thanks
A:
A business trust is a legal entity that holds and manages property or assets for the benefit of beneficiaries. It is formed through a trust agreement, where a trustee holds legal title to the assets and manages them according to the terms of the trust.
When purchasing a business owned by a trust and an individual, you would typically negotiate and enter into a purchase agreement with both the trustee of the business trust and the individual owner. The purchase agreement would outline the terms and conditions of the sale, including the purchase price, assets included, liabilities, and any other relevant details. It is advisable to consult with an attorney or a business professional experienced in such transactions to ensure that the purchase is conducted properly and all legal requirements are met.
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