Glossary · People and paperwork
In short
A legal arrangement where assets are held by one party (the trustee) for the benefit of another (the beneficiary). For a buyer, this can complicate ownership and control in a business acquisition.
If the seller's business assets or ownership are held in a trust, you need to understand the trust's terms. Ensure the trustee has the authority to sell and that the assets are transferred cleanly. This is crucial for verifying clear title and avoiding future disputes.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Know what you'll need before you apply
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