Legal Question in Business Law in Arizona
I have a person corporation and a stock certificate book... only issued two certificates. 10 shares to me and 10 shares to my wife.. I want to transfer the name of each certificate to our family trust, what do I need to do? Can we just sign the back of the certificates on back and insert the family trust where it says PLEASE PRINT OR TYPE NAME AND ADDRESS OF ASSIGNEE?
1 Answer from Attorneys
Yes, you can transfer the ownership of the shares in your corporation to your family trust by signing the old certificates and naming the trustee(s) of the trust as the assignee, and then you should issue new certificates for the shares showing the trustee of the trust as the shareholder of record. In addition, I suggest you show the transfer in the minutes of a meeting of the board of directors. You should obtain the advice of an experienced attorney to be sure that you are funding your trust correctly, as it may not be possible or at least, very expensive, to undue mistakes later, when something has happened to you or your wife. And, at the same time, it sounds like you should have some advice how to maintain your corporate books and records so that you are observing the formalities of the separate legal entity (the corporation), which is essential to get the protection of your corporation and the other benefits you sought when you incorporated the business.
Related Questions & Answers
-
Is there a safe way to present a business idea to a company that may be interested... Asked 12/28/10, 6:06 pm in United States Arizona Business Law
-
An ex-colleague has sent me an invoice for what she perceives to be her... Asked 12/16/10, 9:27 am in United States Arizona Business Law
-
I have a problem. My parents sold their business 15 years ago and the buyer has... Asked 11/23/10, 5:14 pm in United States Arizona Business Law
-
What laws are in place to keep a person from being charged twice for the same... Asked 11/22/10, 3:46 pm in United States Arizona Business Law
-
I need to know if I have a case. I purchased a licensing agreement to operate my... Asked 11/22/10, 10:59 am in United States Arizona Business Law