What Happens On Death Of An LLC Member?
Does the LLC cease to exist(not likely, I would think)? If not, then would it be either up to the Articles of Org to spell it out, the will of the deceased, or the state? Who get's priority in determining what happens?
The LLC does not cease to exist. The Operating Agreement should address the situation you raise. If it doesn't the estate of the deceased member would own his interest.
Are there icky tax issues if the deceased made provisions in their will to pass on their ownership?
What if you are a single member of your LLC and you have no partner other then yourself....and I die and I have over 20 properties under contract....what happens.....will the state step in and take everything I own in my company?
Thanks.
[ Edited by CarolG on Date 08/18/2004 ][ Edited by CarolG on Date 08/18/2004 ]
I would think you would be better off to contact your attorney and have it put in writing what you would like to have happen. That way you will have peace of mind.
Jeff
There are many issues at play here. Tax issues, estate planning issues, real estate issues and corporate entity issues. I would contact an estate planning attorney to discuss options. potential problems and solutions.
Here are some thoughts. The LLC could be held in your revocable living trust so that the LLC interest automatically passes on to your beneficiaries designated in your trust. It would also then be part of your estate plan. Your beneficiaries should receive a step up in basis as well. It should not matter if you have a single member or multi member LLC. Your interest would be passed through your trust, addressed by your will or be administered through probate depending on what you do for estate planning purposes.
Just some thoughts, but I highly recommend at least sitting down with an estate planning attorney for good solid advice.
[addsig]