Should You Put Your LLC Into a Trust? (2025)

If you own a business through a limited liability company (LLC), you may have wondered whether it makes sense to place that LLC into a trust. You might be thinking about the future of your business, how it would be managed if something happened to you, or how to make things easier for your family when you pass away. These are important questions, and the answers can affect your business, your estate plan, and the people who rely on you.

In Oklahoma, putting an LLC into a trust can be a useful way to manage and protect your business interests. To decide what’s best in your situation, you need to understand what the benefits are, how to put an LLC in a trust, and what to consider before making any changes.

Benefits of Putting Your LLC Into a Trust

When you put an LLC into a trust, you transfer ownership from yourself as an individual to the trust. This can provide several benefits for Oklahoma business owners, especially those thinking about long-term planning and asset protection.

Keeping Businesses Separate

If you own multiple businesses, placing each one into its own trust can help keep them legally and financially separate. While LLCs already provide liability protection, putting them in a trust and keeping them apart can provide even more separation.

This kind of structure also makes it easier to manage your businesses. You can keep all businesses separate in their own individual trusts or group certain businesses into their own trust. Then you can name different trustees for each of your different trusts and set different rules for each. If you plan to pass your businesses down to different family members, using separate trusts can make those transitions more straightforward and help avoid conflict.

Succession Planning

Putting your LLC into a trust allows you to decide who will manage or inherit your business when you’re no longer able to do so. This is called succession planning. Without a plan in place, the court may decide who runs your business after you’re gone.

When your LLC is owned by a trust, your chosen trustee can take over immediately if something happens to you. This can help prevent interruptions in the business, which is important if you have employees, clients, or family members who depend on it.

Avoiding Probate

In Oklahoma, property that is held in your name when you pass away goes through a legal process called probate. Probate can take several months and delay access to your business and its assets. If your LLC is held in a trust, it avoids probate because the trust—not you as an individual—is the owner.

This can save time, reduce costs, and make things easier for your family. It also means that your business can continue operating without delay. The trustee you’ve named can step in right away and carry out the terms of the trust.

Keeping Details Private

Probate is a public process. That means anyone can look up court records to find out what assets were in your estate and who received them. By placing your LLC into a trust, you keep the details of your business ownership and succession private.

The trust document is not filed with the court, and the transfer of business interest happens outside of public view. This can protect sensitive information about your business and your family. It can also reduce the risk of disputes, because family members and the public won’t be able to see the terms of the trust.

Should I Put My LLC Into a Trust?

In many cases, it’s a good idea to put your LLC into a trust. Doing so can help with privacy, probate avoidance, business continuity, and planning for the future. However, there are some downsides to consider. Putting an LLC in a trust usually involves legal fees, and maintaining it can require ongoing work. If you use an irrevocable trust, you won’t be able to make changes later, which limits flexibility. In some cases, trust ownership may also affect how the business is taxed or financed.

The best way to decide is to speak with an attorney who understands both estate planning and business law in Oklahoma. They can review your goals, the type of LLC you own, and your personal circumstances to help you make an informed decision.

How to Put an LLC in a Trust

If you decide to move forward with placing your LLC into a trust, you’ll need to carefully complete a few steps to avoid legal or tax issues. Setting up a trust is another area where an attorney can help.

Check Your Operating Agreement

Start by reviewing your LLC’s operating agreement. Some agreements specifically allow ownership by a trust, while others may have restrictions on who can hold an ownership interest in the company. If you own a single-member LLC, the process is simpler because you’re the only person involved in the decision.

If your operating agreement doesn’t allow for trust ownership or is unclear, you may need to amend it—and amending it may require a vote or a consensus among members. Your attorney can help you draft an amendment that fulfills the legal requirements.

Gain Consensus

Even if your operating agreement allows it, if your LLC has more than one member, you may need approval from the other members to transfer your interest to a trust. In some LLCs, all members must agree. In others, a majority is enough.

It’s important to have this discussion and document the outcome. Even if your agreement doesn’t require a formal vote, getting written approval can help avoid disputes later. You’ll want to either call a meeting of the members or have everyone sign a written resolution to record the decision.

Choose Your Trust Type

Next you’ll need to decide what kind of trust to use. A revocable living trust allows you to change or cancel it during your lifetime. It gives you flexibility and is commonly used in estate planning. However, it does not protect your assets from creditors or lawsuits.

An irrevocable trust can’t be changed once it’s created, but it offers stronger asset protection. Some business owners choose this type of trust if they want to remove the business from their personal estate for tax or liability reasons.

You’ll also need to name a trustee who will administer the trust and the business interest held in it. With a living trust, you can serve as your own trustee during your lifetime and name a successor trustee to take over when needed. Be sure to choose someone trustworthy and knowledgeable about the latest Oklahoma trust laws.

Transfer Ownership to the Trust

Now it’s time to officially put the LLC in a trust. To transfer ownership, you must create and sign a document called an assignment of interest. This document should describe the LLC, name the trust as the new owner, and include your signature.

In Oklahoma, the assignment of interest doesn’t have to be notarized, but doing so can give it an extra level of legitimacy. Once signed, all you have to do is keep a copy with your business and estate planning records.

Update Your LLC Documents

After the transfer is complete, review and update your LLC documents to reflect the change. The operating agreement may need to be amended to list the trust as the owner. If your LLC issued membership certificates or keeps a list of owners, those should be updated as well.

If the LLC’s Articles of Organization list you as the sole member or manager, you may want to file an amendment with the Secretary of State to show the new trustee if they will be managing the business. Your estate planning attorney can help you figure all of this out.

Still Have Questions About How to Put an LLC in a Trust?

Putting an LLC into a trust can be a smart part of your estate plan, but it must be done with care. At Plan Ahead Legal, we help Oklahoma business owners protect what they’ve built and plan for what comes next. If you’re not sure whether a trust is the right choice for your LLC, we can help you weigh the options and take the right steps.

Contact us today for a free consultation. We’ll answer your questions, review your documents, and help you move forward with confidence.