Glossary · People and paperwork
Will/trust
In short
Legal documents that dictate how a person's assets will be managed and distributed after their death. A will takes effect upon death, while a trust can manage assets during life and after.
What it means in a deal
As a business owner, a will or trust is crucial for your personal estate planning. While not directly part of the business acquisition, ensuring your personal affairs are in order is smart, especially given the personal guarantees and life insurance requirements of an SBA loan.
Related terms
Common questions about Will/trust
- For a business owned by a trust, what citizenship and residency requirements apply to the trustee for 7(a) eligibility?
- Can a business owned by a trust be eligible for a 7(a) loan if the trustee is a foreign national?
- How does the SBA determine affiliation between businesses controlled by a common trust?
- When does common ownership through a trust or estate create affiliation for size purposes?
- Can I use inherited money that is currently in a trust to fund my equity injection?
- Can a trust or an estate be an eligible borrower for an SBA 7(a) loan?
Defined by CapBench 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.
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