Chapter 34 - § 34.38 • CREATION OF BUSINESS ENTITIES

• Jurisdiction: Colorado

§ 34.38 • CREATION OF BUSINESS ENTITIES

C.R.S. § 15-1-702 deals with the powers of a personal representative or a trustee to facilitate the retention of a family business interest (as defined in the statute where the governing instrument "evidences an intent to retain an interest in a family business"). Only the overall interests of the beneficiaries may be considered. The section allows the formation of a successor business entity. This appears to confirm the practice, once the consent of all the successors is obtained, of creating an entity (such as a limited liability partnership or a limited liability company) and then distributing interests in the entity rather than undivided interests in the underlying asset...