LLC Deceased Partner Buyout
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My partner has recently passed away.. I have the option of buying the LLC for 1/4 of its book value which seems good except how to actually do it? Would I look to a lender to lend me the money bassed on what? I doubt I would get their funds to put into an LLC? How do I buy the LLC if I don't have the hard cash? Should I take out a home equity loan, buy the LLC and then get a new mortage on the same property in my own name?If so how do you dissolve the LLC or do you have to? Hollis
Hollis,
I assume that the primary asset of the LLC is a piece of real estate. Given that you say elsewhere that you've owned this piece a long time you might mortgage the land to come up with the buy-out money.
Part of this is state specific. You may want to just sell the property from the LLC to a new LLC, get a new loan, and then distribute the proceeds once they are in the new LLC. Buying membership interests in the LLC and buying assets owned by the LLC are two different things. As far as how you dissolve, or whether you have to, you would have to look at your state's law if you don't have an existing operating agreement.
Know nothing about PACtrust, and can only presume it is California specific, but virtually all trusts are technically managed by their trustee, not the beneficiary. And virtually all trusts give the trustee the power to hire professionals to assist with the necessary functions and duties of the trustee and pay reasonable compensation for those professional services. If the trustee of a land trust owning a rental property hired a property management service to manage the rental, that would not result in the trust being treated as anything other than a trust.
the trustee has powers to hire a property manager. so just have him hire the beneficiaries. that should solve your problem.