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Trust Can Protect the Family Business

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How a Trust Can Protect the Family Business You’ve Worked Hard to Build

Michael L. RutkowskiMay 27, 2025

When you own a family business, whether a local landscaping company, a multi-state service firm, or the bakery your grandparents started, your business isn’t just a source of income. It results from long hours, tough seasons, and big decisions. It’s personal.

And if you’ve worked this hard to build it, you deserve to know it will stay protected, even when you’re not around to manage it.

But, without explicit legal protections, a family business is incredibly vulnerable to everything we hope never happens, such as lawsuits, probate delays, family disputes, and the chaos that can follow when ownership or leadership is unclear.

The good news? You can prevent most of those problems with a well-crafted trust.

Why a Trust Is a Powerful Tool for Business Owners

If you’ve heard about trusts in the context of estate planning, you might think they’re only for passing down family wealth. But they’re just as critical for protecting and preserving a business. Here's what a trust can do:

✅ Protect the Business from Lawsuits & Creditors

Some trusts—especially those created for asset protection and estate planning- can help shield business assets from lawsuits, divorces, or other unexpected liabilities. That means your equipment, inventory, and income aren’t easily exposed if someone tries to come after you.

✅ Keep Your Business Out of Probate Court

If your business interests are passed through a will or no plan, they’ll likely end up in probate. That means court delays, attorney fees, and decisions being made by a judge. A trust allows your business to pass seamlessly to your chosen successor without court involvement.

✅ Avoid Family Disputes

When you name who’s in charge, how decisions will be made, and what happens to ownership shares, you remove ambiguity, and that’s where most family conflict begins. A trust creates a roadmap everyone can follow, which is especially important in close-knit or multi-generational businesses.

✅ Support a Smooth Business Transition

A trust lets you choose how and when your business passes on. Whether you’re planning to retire or preparing for the unexpected, you can name a successor, set conditions, and prepare your team for what’s next without leaving it all to chance.

Don’t Leave Your Legacy to Unwritten Rules

Most family businesses don’t fail because of bad products or poor service. They fail because there’s no plan when something changes, someone gets sick, retires, or passes away.

You don’t need to know all the answers. You just need to start the conversation.

Our team regularly helps small and medium-sized business owners, many of whom are family-run, create custom trusts that keep their businesses protected and future-ready. Whether you’re based in Michigan or run a company with clients across the country, we can help you avoid legal headaches and build with confidence.

Let’s Secure What You’ve Worked So Hard For

You’ve invested in your people, your product, and your reputation. Now it’s time to invest in protection, before you need it.


Estate Planning Guide

Estate Planning is an essential process that will protect your assets and ensure you’re your estate is distributed according to your wishes after your death.

Many people make mistakes when creating their estate plan, which can lead to unnecessary stress, confusion, and costly legal battles for their loved ones. Below, our estate planning team put together the top 10 and most common mistakes we see in estate planning.

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Screenshot of Top 10 Estate Planning Mistakes