Business partners in a corporation and trust

Asked over 4 years ago - Culpeper, VA

My friend bought a frenchise business few years ago with 4 partners. The fourth partner is a "trust" with two beneficiaries. My question is 1) are the benificiaries are partner in this corporation and can the beneficiaries be changed or removed by the other 3 partners 2) can the trust be dissolved?
Thanks.

Attorney answers (1)

  1. A J Mitchell

    Contributor Level 10

    Answered . The trust is technically the fourth partner. And, the trust is controlled by the trustee of that trust. So, the beneficiaries are not the partner. Only the settlor (or creator of the trust) can change the beneficiaries, if at all. Depending on what the articles of incorporation/bylaws state, you may or may not be able to remove the fourth partner - the trust.

    Without more facts, I cannot know if the trust could be dissolved, but it is highly unlikely that your friend would be able to dissolve someone else's trust.

    He/she should speak with a licensed attorney in the state in which he/she resides.

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