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The beneficiaries of a business trust are personally liable for the trust's debts and obligations.
Business Trust
A form of business organization, created by a written trust agreement, that resembles a corporation. Legal ownership and management of the trust’s property stay with the trustees, and the profits are distributed to the beneficiaries, who have limited liability.
Personally Liable
When an individual is personally responsible for fulfilling a debt or legal obligation, risking personal assets beyond a corporate structure.
- Draw a distinction concerning the duties and liabilities of both members and managers in LLCs.
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Learning Objectives
- Draw a distinction concerning the duties and liabilities of both members and managers in LLCs.
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